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Distribution Solutions Group (FRA:LW2) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Distribution Solutions Group ROE % Related Terms
Distribution Solutions Group ROE % 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.
For the Industrial Distribution subindustry, Distribution Solutions Group's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Distribution Solutions Group's ROE % distribution charts can be found below:
* The bar in red indicates where Distribution Solutions Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Distribution Solutions Group (FRA:LW2) has a ROE % of 5.22% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Distribution Solutions Group and its competitors. This is 214% above median its historical median of 1.66. According to the industry distribution chart, Distribution Solutions Group ranks #125 out of 160 companies in the Industrial Distribution industry, placing it in the top 78.1%.
Is Distribution Solutions Group's ROE % too high?
Distribution Solutions Group's current ROE % of 5.22% is 214% above median its 10-year median of 1.66. The Industrial Distribution industry median ROE % is 8.58. Distribution Solutions Group's value of 5.22% is 39.1% below this industry median. Based on the distribution chart, Distribution Solutions Group ranks #125 out of 160 companies in the Industrial Distribution industry, which is in the bottom quartile relative to peers. Overall, Distribution Solutions Group has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Distribution Solutions Group's ROE % compare to GIC and BXC?
According to the Industrial Distribution industry distribution chart, Distribution Solutions Group ranks #125 out of 160 companies for ROE %. This places Distribution Solutions Group in the lower half of its industry. The industry median ROE % is 8.58. Distribution Solutions Group's value of 5.22% is 39.1% below this benchmark. While the company's 10-year median is 1.66 vs. the industry median of 8.58, Distribution Solutions Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Industrial Distribution company?
The median ROE % among Industrial Distribution companies is 8.58, based on 160 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Distribution Solutions Group's current ROE % of 5.22% is 39.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Distribution Solutions Group and its competitors. For the Industrial Distribution industry, the median ROE % is 8.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Distribution Solutions Group's current ROE % is 5.22%, which is 214% above median its own 10-year median of 1.66. 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 ROE % of 5.22%. The stock's GF Value™ is €28.95, compared to a current price of €29.60 — trading 2.2% above its estimated fair value. The current ROE % is 5.22%, which is 214% above median its 10-year median of 1.66 and 39.1% below the Industrial Distribution industry median of 8.58. Distribution Solutions Group's overall GF Score™ is 79/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Distribution Solutions Group (FRA:LW2), the current ROE % is 5.22% as of Jun. 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 €29.60 is trading 2.2% above its estimated GF Value™ of €28.95.
Key valuation signals for FRA:LW2:
ROE %: 5.22% (214% above median its 10-year median of 1.66)
GF Value™: €28.95 vs. price of €29.60 (2.2% above fair value)
Industry Position: 39.1% below the Industrial Distribution median (#125 of 160)
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.
79GF Score
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