Distribution Solutions Group (FRA:LW2) Moat Score: 3/10 (As of Jul. 24, 2026)

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FRA:LW2 Distribution Solutions Group Inc FRA:LW2
76 GF Score
Price €29.40
GF Value €28.05
! 11 Warning Signs
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What is Distribution Solutions Group Moat Score?

Distribution Solutions Group FRA:LW2 +0.68% 76 Moat Score is 3 as of Jul. 24, 2026. GuruFocus rates FRA:LW2 with a GF Score™ of 76/100 and a GF Value™ of €28.05. The stock has 11 warning signs investors should review. Among 154 Industrial Distribution companies, Distribution Solutions Group ranks better than 81.17% on this metric.

Distribution Solutions Group has the Moat Score of 3, which implies that the company might have No Moat - Very weak/transient advantages.

Distribution Solutions Group has No Moat: Distribution Solutions Group Inc has limited market leadership and lacks significant network effects. The company does not possess strong brand strength or customer loyalty, and its cost advantages are not durable. There are no significant regulatory barriers or exclusive licenses, and its pricing power is weak.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Distribution Solutions Group might have No Moat - Very weak/transient advantages.

Distribution Solutions Group  (FRA:LW2) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Distribution Solutions Group Moat Score Related Terms

FRA:LW2 vs GIC, BXC, TITN: Moat Score Comparison

For the Industrial Distribution subindustry, Distribution Solutions Group's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Distribution Solutions Group Moat Score vs Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Distribution Solutions Group's Moat Score distribution charts can be found below:

* The bar in red indicates where Distribution Solutions Group's Moat Score falls into.


FRA:LW2
76GF Score
Distribution Solutions Group Inc FRA:LW2
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 3 mean?
Distribution Solutions Group (FRA:LW2) has a Moat Score of 3 as of Jul. 24, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Distribution Solutions Group ranks #29 out of 154 companies in the Industrial Distribution industry, placing it in the top 18.8%.
Is Distribution Solutions Group's Moat Score too high?
Distribution Solutions Group's current Moat Score is 3. Based on the distribution chart, Distribution Solutions Group ranks #29 out of 154 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Distribution Solutions Group has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Distribution Solutions Group's Moat Score compare to GIC and BXC?
According to the Industrial Distribution industry distribution chart, Distribution Solutions Group ranks #29 out of 154 companies for Moat Score. This places Distribution Solutions Group in the top 19% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Industrial Distribution company?
A good Moat Score depends on the Industrial Distribution industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Distribution Solutions Group's current Moat Score is 3. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Distribution Solutions Group stock overvalued right now?
Distribution Solutions Group (FRA:LW2) has a current Moat Score of 3. The stock's GF Value™ is €28.05, compared to a current price of €29.40 — trading 4.8% above its estimated fair value. The current Moat Score is 3. Distribution Solutions Group's overall GF Score™ is 76/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Distribution Solutions Group (FRA:LW2), the current Moat Score is 3 as of Jul. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Distribution Solutions Group (FRA:LW2) Overvalued in 2026?

Based on GuruFocus' analysis, Distribution Solutions Group stock appears to be overvalued. The current stock price of €29.40 is trading 4.8% above its estimated GF Value™ of €28.05.

Key valuation signals for FRA:LW2:

  • Moat Score: 3
  • GF Value™: €28.05 vs. price of €29.40 (4.8% above fair value)
  • GF Score™: 76/100 with 11 warning signs

No single metric tells the full story. See the FRA:LW2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Distribution Solutions Group Business Description

Other Exchanges DSGR:USALW2:Germany
Address 301 Commerce Street, Suite 1700, Fort Worth, TX, USA, 76102
Distribution Solutions Group Inc is a specialty distribution company providing value-added distribution solutions to the maintenance, repair and operations (MRO), original equipment manufacturer (OEM) and industrial technology markets. The company operates through four reportable segments: Lawson, TestEquity, Gexpro Services and Canada Branch Division. Lawson distributes specialty products and services to the industrial, commercial, institutional and government MRO marketplace. TestEquity, which generates maximum revenue, distributes test and measurement equipment and solutions, industrial and electronic production supplies and vendor managed inventory programs. Gexpro Services is a supply chain solutions provider. The company generates majority of its revenue from United States.
76GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€29.40
Price
€28.05
GF Value