Last Updated: 15 Sep 2024
Executive Summary
Distribution Solutions Group Inc. (DSGR) is a wholesale distributor of specialty products for industrial, commercial, institutional, and government maintenance, repair, and operations. The company has a market capitalization of $1.7 billion and trades on the NASDAQ exchange. DSGR's latest stock price is $36.37.
Company Overview
Lawson Products, Inc. is headquartered in Chicago, Illinois. The company sells and distributes a wide range of products, including fasteners, cutting tools, abrasives, and chemicals. Lawson Products has a network of over 500 sales representatives and serves over 100,000 customers.
Fundamental Analysis
DSGR's financial performance has been mixed in recent years. The company's revenue has grown steadily, but its profitability has declined. In 2023, DSGR reported a net loss of $10.7 million on revenue of $1.69 billion. The company's gross profit margin has also declined in recent years, from 24.2% in 2021 to 23.2% in 2023.
DSGR's balance sheet is strong. The company has $139.6 million in cash and equivalents and no long-term debt. DSGR's current ratio is 2.5, which is above the industry average of 2.0.
Technical Analysis
DSGR's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
DSGR's stock price is likely to remain under pressure in the short term. The company's financial performance has been weak, and the technical indicators are bearish. Investors should consider waiting for a more favorable entry point before buying DSGR stock.
Long Term Outlook
DSGR's long-term outlook is more positive. The company has a strong market position and a loyal customer base. DSGR is also well-positioned to benefit from the growing demand for industrial products. Investors who are willing to be patient could see significant returns from DSGR stock over the long term.
Analyst Recommendations
Two analysts have a Strong Buy rating on DSGR, while one analyst has a Hold rating. The average analyst target price is $42.50.
