Distribution Solutions Group Inc (DSGR, Financial), an industrial distributor of maintenance and repair supplies, has seen a significant surge in its stock price over the past three months. The company's market cap currently stands at $1.46 billion, with a stock price of $31.28. Over the past week, the stock has gained 4.71%, and over the past three months, it has gained 13.67%. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value of DSGR is $34.54, down from $65.42 three months ago, indicating that the stock is modestly undervalued.
Company Overview
Distribution Solutions Group Inc operates in the industrial distribution industry. The company has three operating segments: Lawson, TestEquity, and Gexpro Services. The TestEquity segment, which is the main revenue driver, is a distributor of test and measurement equipment and solutions, electronic production supplies, and tool kits from its leading manufacturer partners supporting the technology, aerospace, defense, automotive, electronics, education, and medical industries.
Profitability Analysis
DSGR's profitability rank is 6/10, indicating a relatively high level of profitability. The company's operating margin is 4.65%, which is better than 41.1% of companies in the industry. The ROE is 4.07%, better than 27.08% of companies, and the ROA is 1.82%, better than 27.21% of companies. The ROIC is 3.67%, better than 25.85% of companies. Over the past 10 years, the company has been profitable for 6 years, which is better than 25.35% of companies in the industry.
Growth Prospects
The company's growth rank is 9/10, indicating strong growth potential. The 3-year and 5-year revenue growth rates per share are 18.40% and 12.80% respectively, both of which are better than a significant percentage of companies in the industry. The company's future revenue growth rate estimate is 46.51%, which is better than 96.55% of companies in the industry. The 3-year EPS without NRI growth rate is -18.30%, which is better than 11.21% of companies in the industry.
Major Stockholders
The top three holders of DSGR stock are Chuck Royce (Trades, Portfolio), who holds 1.78% of shares, Mario Gabelli (Trades, Portfolio), who holds 0.59% of shares, and Jim Simons (Trades, Portfolio), who holds 0.21% of shares.
Competitive Landscape
DSGR's main competitors in the industrial distribution industry are Global Industrial Co (market cap of $1.21 billion), Transcat Inc (market cap of $805.854 million), and BlueLinx Holdings Inc (market cap of $621.239 million).
Conclusion
In conclusion, DSGR's stock performance, operations, profitability, and growth prospects make it a potential investment for value investors. Despite being modestly undervalued, the company's strong growth prospects and high profitability rank suggest that it has the potential to deliver solid returns in the future.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
