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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2460
Positioning
Market Dominance
Wholesale Trade
Wholesale
$1.4B
John B. King
Lawson Products, Inc. sells and distributes specialty products to the industrial, commercial, institutional, and government maintenance, repair, and operations market. The company was founded in 1952 and is headquartered in Chicago, Illinois.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = DSGR ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$ITRN Ituran Location & Control Ltd. | 74 | 95 | 97 | 62 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$COR Cencora, Inc. | 70 | 84 | 77 | 70 | 21.1x | 11.8x | 161.7% | 3.9% | 3.6% | 1.1% | 0.9% | 8.6% | 0.7% | 416.0x | $58.1B | VS | |
$CENT CENTRAL GARDEN & PET CO | 70 | 84 | 95 | 48 | 5.9x | 3.5x | 20.3% | 8.5% | 34.5% | 14.1% | 9.9% | -3.6% | 0.0% | 75.0x | $2.2B | VS | |
$SNX TD SYNNEX CORP | 67 | 80 | 93 | 57 | 13.5x | 6.2x | 13.1% | 2.9% | 7.2% | 2.5% | 1.5% | 6.6% | 1.2% | 50.0x | $12.2B | VS | |
$HLF HERBALIFE LTD. | 65 | 60 | 75 | 96 | 5.0x | 1.4x | -32.4% | 6.3% | 77.7% | 9.9% | 3.4% | 2.7% | 0.0% | - | $870M | VS | |
$GIC GLOBAL INDUSTRIAL Co | 65 | 82 | 60 | 62 | 18.7x | 12.5x | 24.0% | 12.5% | 35.6% | 7.4% | 5.3% | 3.3% | 2.8% | 0.0x | $1.4B | VS | |
$JXG JX Luxventure Group Inc. | 63 | 84 | 75 | 88 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$FERG Ferguson Enterprises Inc. /DE/ | 63 | 74 | 48 | 67 | 21.4x | 14.3x | 39.4% | 12.6% | 30.7% | 9.4% | 7.0% | 5.1% | 1.3% | 68.0x | $48.9B | VS | |
$SYY SYSCO CORP | 60 | 68 | 49 | 65 | 22.7x | 9.2x | 89.9% | 5.9% | 18.3% | 3.3% | 1.9% | 3.0% | 2.9% | 595.0x | $35.3B | VS | |
$DXPE DXP ENTERPRISES INC | 60 | 58 | 55 | 79 | 21.6x | 8.5x | 25.1% | 6.2% | 31.4% | 8.5% | 4.2% | 8.6% | 0.0% | 128.0x | $1.9B | VS | |
$DSGR Distribution Solutions Group, Inc. | 47 | 44 | 49 | 44 | 38.8x | 23.3x | 5.6% | 2.1% | 33.7% | 4.5% | 1.9% | 17.8% | 0.0% | 102.0x | $1.4B | ||
| SECTOR BENCH | - | - | - | - | - | 19.1x | 8.2x | 8.6% | 3.4% | 27.4% | 3.4% | 1.4% | 3.6% | 0.6% | 0.6x | - | REF |
Distribution Solutions Group, Inc. (DSGR) receives a "Reduce" rating with a composite score of 47.2/100. It ranks #2460 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Wholesale Trade sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for DSGR.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 44 | 44 | 0NEUTRAL |
| MOMENTUM | 44 | 40 | +4NEUTRAL |
| VALUATION | 49 | 56 | -7DRAG |
| INVESTMENT | 25 | 15 | +10ALPHA |
| STABILITY | 66 | 73 | -7DRAG |
| SHORT INT | 36 | 27 | +9ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 3.2% vs WACC 7.2% (spread -4.0%)
GM 34% vs sector 27%, OM 5% vs sector 3%
Capital turnover 0.87x
Rev growth 18%, 10yr history
Interest coverage 1.7x, Net debt/EBITDA 25.2x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Distribution Solutions Group, Inc. (DSGR) as a Reduce with a composite score of 47.2/100 at a current price of $29.79. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Distribution Solutions Group, Inc. holds a top-quartile position (#0 of 50) within the Wholesale Trade sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 47.2/100 places it at rank #2460 in our full universe.
No Moat
Medium
Poor
Fair Value
Stable competitive position in a defensive sector.
Elevated P/E ratio of 38.8x leaves little room for execution misses.
Leverage of 102% D/E amplifies downside risk.
Vulnerability to macroeconomic shocks and interest rate volatility.
Distribution Solutions Group, Inc. represents a reduce based on multi-factor quantitative performance.
Distribution Solutions Group, Inc. receives a Reduce rating from our analysis, with a composite score of 47.2/100 and 2 out of 5 stars, ranking #2460 out of 7,333 stocks. DSGR's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
DSGR's quality score of 44/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 5.6% (sector avg: 8.6%), gross margins of 33.7% (sector avg: 27.4%), net margins of 1.9% (sector avg: 1.4%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 49/100, DSGR appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 38.75x, an EV/EBITDA of 23.30x, a P/B ratio of 2.17x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
Distribution Solutions Group, Inc.'s investment score of 25/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 17.8% vs. a sector average of 3.6% and a return on assets of 2.1% (sector: 3.4%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
DSGR is currently showing below-average momentum at 44/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 17.8% year-over-year, while a beta of 0.98 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
DSGR shows good financial stability with a score of 66/100. Key stability metrics include a beta of 0.98 and a debt-to-equity ratio of 102.00x (sector avg: 0.6x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
Distribution Solutions Group, Inc.'s short interest score of 36/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 102.00x), small-cap liquidity risk. At $1.4B (small-cap), DSGR carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
Distribution Solutions Group, Inc. is a small-cap company in the Wholesale Trade sector, ranked #0 of 50 in its sector (100th percentile) and #2460 of 7,333 overall (66th percentile). Key comparisons include ROE of 5.6% trailing the 8.6% sector median and operating margins of 4.5% above the 3.4% sector average. This top-quartile standing reflects exceptional competitive strength relative to Wholesale Trade peers.
While DSGR currently exhibits a REDUCE profile, superior opportunities exist within the WHOLESALE TRADE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Wholesale Trade Alpha →Quant Factor Profile
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Improvement in Investment (25) would have the largest impact on the composite score.
EV/EBITDA 185% ABOVE SECTOR MEDIAN
ROE 35% BELOW SECTOR MEDIAN
Gross Margin 23% ABOVE SECTOR MEDIAN (FAVORABLE)
Distribution Solutions Group (NASDAQ:DSGR) has a low price-to-sales (P/S) ratio of 0.7x, which appears appealing compared to industry averages, but this is likely due to its sluggish revenue growth. The company's recent revenue growth of 14% over the last year and 108% over three years is tempered by analyst forecasts of only 4.0% growth for the coming year, significantly lower than the industry's 12% forecast. This underwhelming outlook on revenue growth is a primary reason for its depressed P/S ratio and suggests limited potential for a strong share price increase in the near future.

Distribution Solutions Group (NASDAQ: DSGR) has expanded its senior secured credit facility, extending the maturity through 2030 and increasing the revolving capacity by $255 million to $400 million, alongside $700 million in term loans. This move, which brings the uncommitted accordion feature to $500 million, reflects strong lender confidence and aims to enhance financial flexibility for organic growth initiatives and strategic acquisitions. The company provides value-added solutions in MRO, OEM, and industrial technology markets globally.
Distribution Solutions Group (DSGR) recently secured an expanded credit facility through 2030, increasing its term debt and revolving credit to fund future growth. Despite a weak year-to-date share price performance, analysts currently value DSGR at $38.50, suggesting it is 26.8% undervalued compared to its last closing price of $28.20. The company anticipates sustained organic revenue growth and enhanced margins from ongoing operational transformation initiatives.
Distribution Solutions Group (DSGR) has entered into a Second Amended and Restated Credit Agreement with JPMorgan Chase Bank and other lenders. This agreement provides a $400 million senior secured revolving facility and a $700 million senior secured term loan, maturing on December 18, 2030. The funds will be used for working capital, general corporate purposes, permitted acquisitions, and to refinance its prior credit facility.

Distribution Solutions Group, Inc. (NASDAQ:DSGR) has amended and expanded its senior secured credit facility to $1.1 billion through 2030, an increase of $255 million in its revolving credit line. The new facility includes $700 million in term debt and a $400 million revolving credit arrangement, with an uncommitted accordion feature of $500 million. This financial move comes despite the company not being profitable in the last twelve months, though analysts anticipate a return to profitability this year.
Above 50MA
37.18%
Net New Highs
+51081