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DSGR Stock Price & Analysis

Distribution Solutions Group Inc
$
29.710
+29.710(+0%)6M

DSGR Stock Price Chart

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1M
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6M
YTD
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5Y

DSGR Fundamental Analysis

buy
Moderate Buy
Buy
Hold
Sell
bubble
High
bubble
Averages
bubble
Low
Analyst
Rating
Action
Price Target
Date
Rating Reason
Barrington Research
Kevin Steinke
Buy
Maintains
$44
2025-03-11
Barrington Research
Kevin Steinke
Buy
Maintains
$43 → $44
2024-11-06
Barrington Research
Kevin Steinke
Buy
Maintains
$40 → $43
2024-08-19
Stephens & Co.
Tommy Moll
Buy
Reiterates
$42
2024-08-05
Barrington Research
Kevin Steinke
Buy
Maintains
$40
2024-05-28

DSGR Earnings Analysis

Distribution Solutions Group Inc Corporation (DSGR.O) Q4 2024 Earnings Conference Call

Positive

  • Earnings Beat Expectations: Distribution Solutions Group, Inc. beats earnings expectations with reported EPS of $0.42, exceeding expectations of $0.33.

  • Revenue Increase from Acquisitions: Reported revenue for fiscal 2024 reached $1.8 billion, up almost 15%, driven by strategic acquisitions over the past 24 months.

  • Strong Cash Generation: Adjusted free cash flow grew to $175 million, demonstrating strong cash generation capabilities.

  • Revenue and EBITDA Growth: DSG has doubled its revenues and generated an incremental $100 million of adjusted EBITDA in three fiscal years since the 2022 strategic merger.

  • Revenue Expansion Strategy: Successfully expanded revenue both organically and through five strategic acquisitions, enhancing scale and geographic footprint.

  • Product Expansion through Acquisitions: Acquisitions have allowed DSG to broaden its product offerings and customer engagement, particularly in safety products and test measurement services.

  • Strong Operational Cash Flow: Cash flows from operations exceeded $100 million before retention payments and acquisition costs, indicating strong operational performance.

  • Improved Market Conditions: Market conditions improved sequentially across most end markets during the second half of 2024, positioning DSG for record performance in 2025.

  • Sales Force Expansion Plans: Lawson Products is focusing on building a world-class sales force, with plans to increase sales reps to approximately 1,000 by the second half of 2025.

  • Strong Revenue Growth: Gexpro Services reported a 27.4% revenue growth in Q4, primarily from organic expansion, indicating strong operational traction.

  • Test and Measurement Growth: Test Equity Group showed strong sequential momentum with positive growth in test and measurement sales, chambers, and rentals.

  • Strong Financial Position: The company maintains a strong balance sheet with approximately $473 million in net working capital and $335 million of liquidity, supporting future growth initiatives.

Negative

  • Military Sales Decline: Significant decline in military sales, down over 50%, placing pressure on total sales for Lawson, not attributed to internal initiatives or market conditions.

  • EBITDA Margin Compression: Compression in EBITDA margins due to Salesforce transition and fewer selling days, impacting overall profitability.

  • EBITDA Margin Compression: The Canada branch segment's EBITDA margins were compressed due to the Source Atlantic acquisition, which had a 50 basis point impact on DSG's margin profile in Q4.

  • Sales Force Investment Challenges: The need for significant investment in rebuilding the sales force at Lawson, which has resulted in near-term earnings compression and is expected to take until 2026 to fully realize benefits.

  • HISCO Segment Challenges: Challenges in the HISCO segment with weaker sales in key supplier categories and declining average order sizes over the last two years.

  • Market Conditions Analysis: The overall market conditions remain choppy, with some areas showing cautionary trends in book-to-bill and revenue, particularly in the C and I segment.

DSGR News

bubble
1.0
03-10Business Insider
Distribution Solutions management to meet with Stephens
bubble
4.0
03-07Business Insider
Analysts Offer Insights on Industrial Goods Companies: Park-Ohio Holdings (PKOH) and Distribution Solutions Group (DSGR)
bubble
9.5
03-06Businesswire
Distribution Solutions Group Announces 2024 Full Year and Fourth Quarter Results
bubble
2.0
02-06Newsfilter
Distribution Solutions Group Announces Timing for Fourth Quarter and Fiscal Year 2024 Results and Conference Call
bubble
2.0
01-28NASDAQ.COM
Distribution Solutions Group Enters Oversold Territory (DSGR)

DSGR FAQs

What is surpport and resistant level for DSGR Stock?

The S1 support level for DSGR Stock is $27.99 ,The R1 resistant level for DSGR Stock is $31.15.

What is the current price of DSGR Stock?

What is the market cap of Distribution Solutions Group Inc?

What is Distribution Solutions Group Inc (DSGR)'s business?

How many employees does DSGR have?

DSGR Key Stats

High
29.990
Vol
41.76K
Low
29.340
Amount
1.24M
Open
29.340
VWAP
29.68
Mkt Cap
1.38B
EV/EBITDA(TTM)
15.69

DSGR Company Profile

Distribution Solutions Group, Inc. is a specialty distribution company. The Company is engaged in providing value-added distribution solutions to the maintenance, repair and operations (MRO), original equipment manufacturer (OEM) and industrial technology markets. The Company operates through three segments: Lawson, Gexpro Services and TestEquity. Lawson is a distributor of products and services to the industrial, commercial, institutional and governmental MRO marketplace. Lawson primarily distributes MRO products to its customers through a network of sales representatives throughout the United States and Canada. TestEquity is a distributor of test and measurement equipment and solutions, electronic production supplies and tool kits from its manufacturing partners. The Company’s Gexpro Services is a global supply chain solutions provider, specializing in the development of mission critical production line management, aftermarket and field installation programs.