Distribution Solutions Group, I — Earnings Quality Grade F
DSGR · Industrials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 50 days, change -1 days YoY
AR growth 8.2% vs revenue growth 9.8%
Revenue 9.8%, CFFO 48.5%. Cash follows revenue
Expense Quality
Inventory 1.5% vs COGS 10.7%. Normal
CapEx growth 74.6% is >2x revenue growth 9.8%
SG&A/Gross Profit = 88.2%, exceeds 70%
Gross margin 33.4%, change -0.6pp. Stable
Cash Flow Quality
CFFO far exceeds NI (ratio 10.0x). Non-cash charges depressing profits
FCF $0.0B, FCF/NI = 5.20
Accruals ratio = -4.3%. Low accruals
Cash $0.1B covers only 8% of debt $0.8B
Balance Sheet Health
Goodwill+Intangibles $0.7B = 107% of equity. Over 50%
Debt/EBITDA = 5.3x (>4x). Interest coverage = 1.4x (<2x). Financial stress
Other assets grew 47.7% vs revenue 9.8%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -5% YoY. Normal
Manipulation Score
M-Score = -2.61 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25