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Distribution Solutions Group, Inc. ( DSG ), a Delaware corporation, is a global specialty distribution company providing value-added distribution solutions to the maintenance, repair and operations ( MRO ), original equipment manufacturer ( OEM ) and industrial technology markets. Through the strategic Mergers (as defined below) completed in 2022, the complementary distribution busines…
$34.50
+$0.00 (+0.00%)
Live · 06:14 PM
Operating margin is thin at 3.95%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 9.8%, steady but not accelerating.
At 288x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Net debt of $757M represents 12.1x FCF, leverage limits flexibility.
287.5x earnings, 32.8x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$2.00B
▲ +9.8% YoY
Net Income (TTM)
$5M
▲ +213.8% YoY
Op. Margin
3.59%
▲ +0.9pp YoY
ROIC
4.23%
▲ +1.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$50M
▲ +46.9% YoY
Op. Cash Flow (TTM)
$68M
▲ +48.5% YoY
Net Debt
$797M
Cash & Equiv.
$53M
5Y CAGR: +41.3%
5Y CAGR: +15.3%
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At a P/E of 287.5 and a price-to-free-cash-flow of 32.8, Distribution Solutions Group (DSGR) trades around a two-stage DCF intrinsic value of about $36.21 per share, so at $34.50 the stock looks around fair value (5.0% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Distribution Solutions Group scores 28/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $36.21 per share for DSGR, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $27.16. At today's $34.50, that puts the stock about 5.0% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Distribution Solutions Group scores 28 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 3.6% operating margin and a 4.2% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
That depends on valuation and quality together, not either alone. DSGR currently trades around its estimated intrinsic value and scores 28/100 on quality (lower-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.