Distribution Solutions Group, Inc. (LAWS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DNOW, Inc.

World Kinect Corp.

AerSale Corp.

Distribution Solutions Group, Inc.

Suburban Propane Partners LP

Global Partners LP

BlueLinx Holdings, Inc.

MRC Global, Inc.

CrossAmerica Partners LP

Lavoro Ltd.

Li-Cycle Holdings Corp.

Why is Distribution Solutions Group, Inc. ?

Poor Management Efficiency with a low ROCE of 9.16%

The company has been able to generate a Return on Capital Employed (avg) of 9.16% signifying low profitability per unit of total capital (equity and debt)

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 40.97% and Operating profit at 35.26%

Flat results in Jun 25

NET PROFIT(HY) At USD 9.94 MM has Grown at -56.52%
DEBT-EQUITY RATIO (HY) Highest at 117.87 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -28.82%, its profits have risen by 18.8% ; the PEG ratio of the company is 2.3

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -1.12% over the previous quarter and collectively hold 16.07% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Distribution Solutions Group, Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Distribution Solutions Group, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Distribution Solutions Group, Inc.

-30.51%

-0.26

36.12%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

40.97%

EBIT Growth (5y)

35.26%

EBIT to Interest (avg)

7.49

Debt to EBITDA (avg)

2.17

Net Debt to Equity (avg)

1.09

Sales to Capital Employed (avg)

1.28

Tax Ratio

91.93%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

16.07%

ROCE (avg)

9.16%

ROE (avg)

6.94%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.02

EV to EBIT

19.68

EV to EBITDA

11.13

EV to Capital Employed

1.49

EV to Sales

1.06

PEG Ratio

2.33

Dividend Yield

ROCE (Latest)

7.58%

ROE (Latest)

4.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

NET PROFIT(Q)

At USD 5.06 MM has Grown at 274.55%

RAW MATERIAL COST(Y)

Fallen by 0.55% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.95 times

NET SALES(Q)

Highest at USD 502.44 MM

OPERATING PROFIT(Q)

Highest at USD 47.31 MM

-9What is not working for the Company

NET PROFIT(HY)

At USD 9.94 MM has Grown at -56.52%

DEBT-EQUITY RATIO (HY)

Highest at 117.87 %

Here's what is working for Distribution Solutions Group, Inc.

Net Profit

At USD 5.06 MM has Grown at 274.55%

over average net sales of the previous four periods of USD -2.9 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

Highest at USD 502.44 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 47.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Inventory Turnover Ratio

Highest at 3.95 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.55% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 20.34 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Distribution Solutions Group, Inc.

Debt-Equity Ratio

Highest at 117.87 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio