Forensic Analysis · Trading Companies & Distributors · as of Aug 11, 2026
Distribution Solutions Group, Inc. (DSGR)
A forensic read on Distribution Solutions Group, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
3.5
Distress distance
Clean
Earnings quality
5
Forensic signals
295.0
P / E (ttm)
1.3%
ROE
$1.6B
Market cap
9.8%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Distribution Solutions Group, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 3.5, placing it in the Safe zone. 5 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
3.6%
FY2025
Return on invested capital.Return on invested capital is 3.6% in the latest fiscal year and steady — well below its ~8% cost of capital, so reinvested dollars may be destroying value, not building it.
+10.4%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +34% over the last 3 years to FY2025 (+10.4%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~10.4% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~26%.
suspended
FY2012→FY2014
Dividend — suspended.The dividend has been SUSPENDED — $3M paid in FY2012, then $0 in FY2014. A suspension is a major signal the board is conserving cash; the prior payment history doesn't offset it.
0.3% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 0.3% of revenue and 11% of free cash flow in FY2025 — about $0.14 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 11.0% a year and is falling.
$2M
FY2020–FY2020
Goodwill impairments.Took $2M of goodwill writedowns across 1 year (FY2020 ($2M)) — about 13% of net income over the span. Writedowns mean past acquisitions underperformed what was paid for them.
Key fundamentals
Latest Revenue$1.98B
Revenue Growth YoY+9.8%
Revenue CAGR (3yr)+19.8%
Net Margin0.4%
Free Cash Flow$62.8M
Return on Equity1.3%
Debt / Equity1.08x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Distribution Solutions Group, Inc.'s actual 10-K/10-Q/8-K filings?