Distribution Solutions Group, I DSGR

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
42/100
Developing

About Distribution Solutions Group, I

Distribution Solutions Group, Inc., a specialty distribution company, provides value-added distribution solutions to the maintenance, repair and operations (MRO), original equipment manufacturer, and industrial technology markets. It operates through four segments: Lawson, Gexpro Services, TestEquity, and Canada Branch Division. The Lawson segment distributes specialty products and services to the industrial, commercial, institutional, and government MRO marketplace. The Gexpro Services segment … Full DSGR analysis →

Competitive advantage assessment

Key strengths

  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.79), demonstrating pricing resilience across cycles.
  • Operating Leverage in Effect Operating leverage is evident (score 0.84), with margins expanding over time.

Key risks

  • Revenue Volatility Signals Weak Stickiness Revenue volatility is high (stability score 0.05), suggesting weak customer stickiness.
  • Below-Peer Operating Efficiency Operating margin at 26.3th percentile indicates below-peer efficiency.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
63

Where DSGR ranks in Industrial Distribution

Distribution Solutions Group, I ranks #16 of 21 scored companies in Industrial Distribution by moat score — the top 76%. The widest moat in the group is Fastenal Company (FAST) at 91/100.

Moat scores for companies ranked near DSGR in Industrial Distribution
# Company Moat score Rating
12 Pool Corporation POOL 46/100 Developing
13 EVI Industries, Inc. EVI 44/100 Developing
14 SiteOne Landscape Supply, Inc. SITE 44/100 Developing
15 WESCO International, Inc. WCC 43/100 Developing
16 Distribution Solutions Group, I DSGR 42/100 Developing
17 Resideo Technologies, Inc. REZI 40/100 Developing
18 DNOW Inc. DNOW 25/100 Developing
19 Bluelinx Holdings Inc. BXC 17/100 Weak
20 Titan Machinery Inc. TITN 15/100 Weak

See every General Corporate company ranked by moat score →

How DSGR scores on the Corporate Default defenses

Pricing Power

Score 63 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 17 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 13 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 43 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 30 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 69 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding DSGR's moat

What is Distribution Solutions Group, I's moat score?

Distribution Solutions Group, I (DSGR) scores 42 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #16 of 21 scored companies in Industrial Distribution, the top 76%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 20 companies in Industrial Distribution. Its strongest defense is Scale & Market Position (69/100) and its weakest is Customer Stickiness (13/100).

How does Distribution Solutions Group, I compare with other Industrial Distribution companies?

Distribution Solutions Group, I ranks #16 of 21 scored companies in Industrial Distribution by moat score. The widest moat in Industrial Distribution is Fastenal Company (FAST) at 91/100. The companies ranked closest are WESCO International, Inc. (WCC) at 43 just above it and Resideo Technologies, Inc. (REZI) at 40 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 20 companies in Industrial Distribution. The defenses are then weighted to produce the overall score out of 100.

Why is Distribution Solutions Group, I scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Distribution Solutions Group, I?

The Corporate Default template measures 6 defenses, and DSGR scores: Pricing Power (63), Cost Advantage (17), Customer Stickiness (13), Capital Efficiency (43), Resilience (30), Scale & Market Position (69). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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