Distribution Solutions Group Inc. (DSGR) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, DSGR scores 62 out of 100, grading C and carrying the verdict "Roarable Hold — Fair / Balanced Risk-Reward." The Fundamental Cash Engine pillar scores 10 of 20, reflecting an ROIC of 4.9% and an FCF yield of 3.88%; for a prospective investor, this suggests the business currently generates modest returns on invested capital relative to its valuation. The Whale 13F Flow pillar scores 15 of 20, pointing to institutional accumulation and options positioning as a relative strength. The Insider Conviction pillar scores 13 of 20 based on SEC Form 4 and Congressional PTR cluster flow. The Macro Regime Fit pillar scores 10 of 20, with a beta of 1.0 and sector sensitivity as the stated drivers. The Forensic Balance Sheet pillar scores 14 of 20, supported by an Altman Z-Score of 2.45, a Piotroski F-Score of 9/9, and a Debt/Equity ratio of 1.02. Taken together, the upside drivers are the balance sheet quality and institutional positioning; the valuation tradeoff is that the EV/EBITDA of 23.1 sits against a thin 4.9% ROIC and a 0.4% net margin, and the macro pillar offers limited cushion. The rating frames this as a balanced risk-reward profile rather than a directional call.

Per the SEC financials, revenue grew from $1570.4M in FY 2023 to $1980.0M in FY 2025, and net income moved from a loss of $-9.0M to a profit of $8.3M over the same span. Per the market data, the net margin is 0.4% and the operating margin is 4%. The Roarable RQD rating cites an Altman Z-Score of 2.45, a Piotroski F-Score of 9/9, and a Debt/Equity ratio of 1.02, alongside ROIC of 4.9%. Debt declined from $693.9M in FY 2024 to $664.2M in FY 2025, while cash fell from $66.5M to $61.8M over the same period.

Per the recent news and catalysts feed, the dominant item is a proposed $700 Million Senior Notes offering, which a separate wire item describes as an $800M bond offering tied to a buyout. Both are flagged YELLOW. A third wire item references DSGR having acquired a business with 270 franchisees. Other wire items are opinion or screening pieces ("2 Reasons to Like DSGR and 1 to Stay Skeptical"; "1 Industrials Stock to Consider Right Now and 2 We Ignore") and an investor alert with no substantive detail in the summary. Risk watch items per the feed center on the scale of new debt financing relative to a debt base of $664.2M in FY 2025. The Butterfly Supply-Chain Graph reports no supply-chain links and no proprietary signals.

• What are the terms (coupon, maturity, use of proceeds) of the proposed senior notes offering, and how do they reconcile with the $700 Million versus $800M figures in separate wire items?
• What is the EPS and P/E on a trailing and forward basis, given that both are unavailable in the source data?
• What products, customers, and revenue model drive the $1980.0M revenue base in FY 2025?
• What institutional 13F and insider Form 4 activity underlies the Whale 13F Flow and Insider Conviction pillar scores?
• How does the acquisition referenced in the wire feed affect revenue, margins, and the debt load?