Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Distribution Solutions Group's annualized net income for the quarter that ended in Mar. 2026 was €1 Mil. Distribution Solutions Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €-38 Mil. Therefore, Distribution Solutions Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Distribution Solutions Group's Return-on-Tangible-Equity or its related term are showing as below:
FRA:LW2'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -29.99 Med: 9.99 Max: 50.82
Current: Negative Tangible Equity
During the past 13 years, Distribution Solutions Group's highest Return-on-Tangible-Equity was 50.82%. The lowest was -29.99%. And the median was 9.99%.
FRA:LW2's Return-on-Tangible-Equity is ranked better than 99.35% of 154
companies
in the Industrial Distribution industry
Industry Median: 9.02
vs FRA:LW2: Negative Tangible Equity
Distribution Solutions Group (FRA:LW2) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Distribution Solutions Group Return-on-Tangible-Equity Related Terms
Distribution Solutions Group Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Distribution Solutions Group Return-on-Tangible-Equity Chart
FRA:LW2 vs GIC, BXC, TITN: Return-on-Tangible-Equity Comparison
For the Industrial Distribution subindustry, Distribution Solutions Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Distribution Solutions Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Distribution Solutions Group's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Distribution Solutions Group (FRA:LW2) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Distribution Solutions Group and its competitors. According to the industry distribution chart, Distribution Solutions Group ranks #1 out of 154 companies in the Industrial Distribution industry, placing it in the top 0.59999999999999%.
Is Distribution Solutions Group's Return-on-Tangible-Equity too high?
Distribution Solutions Group's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Distribution Solutions Group ranks #1 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 Return-on-Tangible-Equity compare to GIC and BXC?
According to the Industrial Distribution industry distribution chart, Distribution Solutions Group ranks #1 out of 154 companies for Return-on-Tangible-Equity. This places Distribution Solutions Group in the top 1% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.02. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Industrial Distribution company?
The median Return-on-Tangible-Equity among Industrial Distribution companies is 9.02, based on 154 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Distribution Solutions Group and its competitors. For the Industrial Distribution industry, the median Return-on-Tangible-Equity is 9.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Distribution Solutions Group's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Return-on-Tangible-Equity of Negative Tangible Equity%. 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 Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Distribution Solutions Group (FRA:LW2), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 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.
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 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
Get the complete analysis for FRA:LW2
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:LW2 has been successfully added to your 
