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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Distribution Solutions Group's annualized ROCE % for the quarter that ended in Mar. 2026 was 3.53%.
Distribution Solutions Group (FRA:LW2) ROCE % Explanation
ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.
Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.
Distribution Solutions Group ROCE % Related Terms
Distribution Solutions Group ROCE % 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.
(1) Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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 (FRA:LW2) has a ROCE % of 3.53% as of Mar. 2026.
Is Distribution Solutions Group's ROCE % too high?
Distribution Solutions Group's current ROCE % is 3.53%. The Industrial Distribution industry median ROCE % is 9.51. Distribution Solutions Group's value of 3.53% is 62.9% below this industry median. 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 ROCE % compare to GIC and BXC?
Distribution Solutions Group's ROCE % of 3.53% can be compared against companies in the Industrial Distribution industry. The industry median ROCE % is 9.51. Distribution Solutions Group's value of 3.53% is 62.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Industrial Distribution company?
The median ROCE % among Industrial Distribution companies is 9.51, based on 158 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Distribution Solutions Group's current ROCE % of 3.53% is 62.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Industrial Distribution industry, the median ROCE % is 9.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Distribution Solutions Group's current ROCE % is 3.53%. 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 ROCE % of 3.53%. 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 ROCE % is 3.53% and 62.9% below the Industrial Distribution industry median of 9.51. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Distribution Solutions Group (FRA:LW2), the current ROCE % is 3.53% 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.
Key valuation signals for FRA:LW2:
ROCE %: 3.53%
GF Value™: €28.05 vs. price of €29.40 (4.8% above fair value)
Industry Position: 62.9% below the Industrial Distribution median
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
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