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Distribution Solutions Group Inc (DSGR)



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Upturn Advisory Summary
03/27/2025: DSGR (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -3.6% | Avg. Invested days 49 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.31B USD | Price to earnings Ratio - | 1Y Target Price 43 |
Price to earnings Ratio - | 1Y Target Price 43 | ||
Volume (30-day avg) 52458 | Beta 0.44 | 52 Weeks Range 27.30 - 41.47 | Updated Date 04/1/2025 |
52 Weeks Range 27.30 - 41.47 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.16 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-03-05 | When Before Market | Estimate 0.3333 | Actual 0.42 |
Profitability
Profit Margin -0.41% | Operating Margin (TTM) 9.6% |
Management Effectiveness
Return on Assets (TTM) 3.52% | Return on Equity (TTM) -1.13% |
Valuation
Trailing PE - | Forward PE 16.5 | Enterprise Value 2075242368 | Price to Sales(TTM) 0.72 |
Enterprise Value 2075242368 | Price to Sales(TTM) 0.72 | ||
Enterprise Value to Revenue 1.14 | Enterprise Value to EBITDA 16 | Shares Outstanding 46558900 | Shares Floating 42503166 |
Shares Outstanding 46558900 | Shares Floating 42503166 | ||
Percent Insiders 1.3 | Percent Institutions 93.71 |
Analyst Ratings
Rating 4 | Target Price 43 | Buy 1 | Strong Buy 1 |
Buy 1 | Strong Buy 1 | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Distribution Solutions Group Inc

Company Overview
History and Background
Distribution Solutions Group, Inc. was formed in 2022, but its constituent businesses have histories spanning decades. It was formed through the merger of Lawson Products, Gexpro Services, and TestEquity, aiming to create a comprehensive distribution platform for MRO, specialty, and electronic products.
Core Business Areas
- Lawson Products: Focuses on the distribution of MRO (maintenance, repair, and operations) products to industrial, commercial, government, and institutional customers.
- Gexpro Services: Provides supply chain management and kitting solutions to OEMs (original equipment manufacturers) across various industries.
- TestEquity: Distributes electronic test and measurement equipment, electronic production supplies, and tools.
Leadership and Structure
The leadership team consists of experienced executives from the legacy companies. The organizational structure is designed to leverage synergies between the different business units.
Top Products and Market Share
Key Offerings
- MRO Products: Lawson Products offers a wide range of MRO supplies, fasteners, and related products. The market is highly fragmented with significant competition. Data about specific market share is difficult to ascertain, but key competitors include Fastenal (FAST), Grainger (GWW), and MSC Industrial Direct (MSM).
- Supply Chain Solutions: Gexpro Services delivers customized supply chain solutions, including kitting and vendor-managed inventory. Competitors include various logistics and supply chain management providers.
- Electronic Test Equipment: TestEquity supplies test and measurement equipment and related products. Competitors include Keysight Technologies (KEYS) and Tektronix (part of Fortive Corporation, FTV).
Market Dynamics
Industry Overview
The industrial distribution market is characterized by a large number of participants and increasing demand for value-added services like supply chain management and technical support. The electronic test and measurement equipment market is driven by technological advancements and increasing demand for testing and validation.
Positioning
Distribution Solutions Group aims to be a comprehensive solutions provider by offering a broad range of products and services across multiple end markets. Competitive advantages include their scale and diversification.
Total Addressable Market (TAM)
The TAM across MRO, supply chain services, and electronic test equipment distribution is estimated to be several hundred billion dollars. DSGR is positioned to capture a larger share through cross-selling and expanded service offerings.
Upturn SWOT Analysis
Strengths
- Diversified product and service offerings
- Established customer relationships
- Scalable platform
- Experienced management team
Weaknesses
- Integration risks from recent mergers
- Exposure to cyclical industries
- Reliance on key suppliers
- Brand awareness still developing
Opportunities
- Cross-selling and upselling to existing customers
- Expanding into new geographies
- Acquiring complementary businesses
- Leveraging technology to improve efficiency
Threats
- Economic downturns
- Increased competition
- Supply chain disruptions
- Changes in customer preferences
Competitors and Market Share
Key Competitors
- FAST
- GWW
- MSM
- FTV
Competitive Landscape
DSGR aims to compete through a broader product offering and greater service capabilities than some of its more specialized competitors. It must manage integration risks and continue to innovate to maintain its advantage.
Major Acquisitions
Gexpro Services
- Year: 2022
- Acquisition Price (USD millions):
- Strategic Rationale: Expanded DSGR's supply chain solutions and OEM customer base.
TestEquity
- Year: 2022
- Acquisition Price (USD millions):
- Strategic Rationale: Broadened DSGR's offering of electronic test and measurement equipment.
Growth Trajectory and Initiatives
Historical Growth: Historical growth trends should be assessed by examining DSGR's revenue growth and profitability over time. Analyze past performance to spot trends.
Future Projections: Analyst estimates for DSGR's future growth can be obtained from financial news sources and research reports.
Recent Initiatives: Recent strategic initiatives include acquisitions, product launches, and expansion into new markets. Please see their investor relations page to get the latest information.
Summary
Distribution Solutions Group is a diversified industrial distributor with a strategic focus on MRO, specialty products, and electronic test equipment. The company's strengths include its broad product portfolio, established customer relationships, and experienced management team. However, DSGR faces integration challenges and is exposed to cyclical industries. Future success depends on effective integration, cost management, and continued innovation to capitalize on market opportunities.
Similar Companies
- FAST
- GWW
- MSM
- FTV
Sources and Disclaimers
Data Sources:
- SEC Filings (10-K, 10-Q)
- Company Investor Relations
- Financial News Outlets
- Industry Research Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share data and competitor analyses are estimates and may vary. Investment decisions should be based on thorough research and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Distribution Solutions Group Inc
Exchange NASDAQ | Headquaters Fort Worth, TX, United States | ||
IPO Launch date 1990-03-26 | President, CEO & Chairman Mr. John Bryan King C.F.A. | ||
Sector Industrials | Industry Industrial Distribution | Full time employees 4400 | |
Full time employees 4400 |
Distribution Solutions Group, Inc., a specialty distribution company, provides value-added distribution solutions to the maintenance, repair and operations (MRO), original equipment manufacturer, and industrial technology markets. It operates through four segments: Lawson, Gexpro Services, TestEquity, and Canada Branch Division. The Lawson segment distributes specialty products and services to the industrial, commercial, institutional, and government MRO marketplace. The Gexpro Services segment provides supply chain management solutions that offer VMI, kitting, global logistics management, manufacturing localization and import, value engineering, and quality assurance to renewables, industrial power, consumer and industrial, technology, transportation, and aerospace and defense customers. The TestEquity segment distributes test and measurement equipment and solutions, industrial and electronic production supplies, and vendor managed inventory programs, as well as converting, fabrication, and adhesive solutions to the aerospace and defense, wireless and communication, semiconductors, industrial electronics and automotive, and electronics manufacturing industries under the TestEquity, Hisco, TEquipment, Techni-Tool, and Jensen Tools brands. The Canada Branch Division distributes industrial MRO supplies, safety products, fasteners, power tools, and related value-add services to the industrial, government, commercial, and residential contractor markets for the Canadian MRO market. It has operations in the United States, Canada, Europe, Pacific Rim, Latin America, and internationally. The company was formerly known as Lawson Products, Inc. and has changed to Distribution Solutions Group, Inc. 2022. Distribution Solutions Group, Inc. was incorporated in 1952 and is headquartered in Fort Worth, Texas.
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