Distribution Solutions Group, Inc. (DSGR) AI Stock Analysis

Distribution Solutions Group, Inc. is a specialty distribution company offering tailored supply chain solutions across multiple industrial sectors. Headquartered in Chicago, Illinois, and founded in 1952, the company services maintenance, repair, and operations (MRO) industries, original equipment manufacturers (OEMs), and industrial technologies markets. Its operations provide products and services focused on operational efficiency, inventory optimization, logistics, and timely delivery through an extensive distribution network and strategic partnerships.

Revenue grew at a 5-year CAGR of 41.3% from FY2020 to FY2025, rising from $520.3M in FY2021 to $1.98B in FY2025. Annual net income has fluctuated, shifting from -$5.1M in FY2021 to $7.4M in FY2022, -$9.0M in FY2023, -$7.3M in FY2024, and $8.3M in FY2025. Gross margin was 33.4% and operating margin was 4.0% in FY2025. In the trailing twelve months, revenue totaled $2.05B with diluted EPS of $0.19 and an operating margin of 5.5%. For the latest quarter ended June 30, 2026, quarterly revenue grew 11.0% year-over-year, while quarterly earnings increased 66.9%.

As of June 30, 2026, Distribution Solutions Group held $75.5M in cash and short-term investments alongside total debt of $845.5M, resulting in net debt of $770.0M. Shareholders' equity stood at $654.7M, giving a debt-to-equity ratio of 1.29, while the current ratio was 2.54. In FY2025, the company generated $83.8M in operating cash flow and $43.4M in free cash flow. Capital expenditures were $40.5M, and share buybacks totaled $24.4M in FY2025.

At $35.06 per share, Distribution Solutions Group has a market capitalization of $1.62B and an enterprise value of $2.40B. The stock trades at a trailing P/E of 184.5x, well above the 24.8x median of its US-listed Industrials peers. Its forward P/E of 19.6x and EV to EBITDA of 16.0x also compare to peer medians of 17.2x and 13.9x, respectively. The company's price-to-sales multiple is 0.8x compared to the peer median of 1.5x. Over the past year, the stock returned 22.8%, outperforming the S&P 500 (SPY) return of 16.8%, though its 5-year return of 35.5% trailed the S&P 500 return of 83.0%.

Consensus coverage shows 2 Hold ratings, with 0 Buy and 0 Sell recommendations. The mean price target is $35.00, representing a 0.2% decline from the last close of $35.06. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $1.53 on revenue of $2.13B. For the following fiscal year, 2 analysts project EPS of $1.75 and revenue of $2.23B, reflecting 4.6% revenue growth. Over the last 4 quarters, the company beat EPS estimates 1 time. The next earnings release date is October 29, 2026.

This page is an AI-written research summary of Distribution Solutions Group, Inc. (DSGR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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