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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Distribution Solutions Group's 5-Year RORE % for the quarter that ended in Mar. 2026 was 3,760.00%.
FRA:LW2's 5-Year RORE % is ranked better than 99.26% of 136
companies
in the Industrial Distribution industry
Industry Median: 0.35
vs FRA:LW2: 3760.00
Distribution Solutions Group (FRA:LW2) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Distribution Solutions Group 5-Year RORE % Related Terms
Distribution Solutions Group 5-Year RORE % 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.
FRA:LW2 vs GIC, BXC, TITN: 5-Year RORE % Comparison
For the Industrial Distribution subindustry, Distribution Solutions Group's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Distribution Solutions Group's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Distribution Solutions Group's 5-Year RORE % 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
Distribution Solutions Group (FRA:LW2) has a 5-Year RORE % of 3,760.00 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Distribution Solutions Group and its competitors. According to the industry distribution chart, Distribution Solutions Group ranks #1 out of 136 companies in the Industrial Distribution industry, placing it in the top 0.7%.
Is Distribution Solutions Group's 5-Year RORE % too high?
Distribution Solutions Group's current 5-Year RORE % is 3,760.00. The Industrial Distribution industry median 5-Year RORE % is 0.35. Distribution Solutions Group's value of 3,760.00 is 1074185.7% above this industry median. Based on the distribution chart, Distribution Solutions Group ranks #1 out of 136 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 5-Year RORE % compare to GIC and BXC?
According to the Industrial Distribution industry distribution chart, Distribution Solutions Group ranks #1 out of 136 companies for 5-Year RORE %. This places Distribution Solutions Group in the top 1% of its industry — outperforming the majority of peers. The industry median 5-Year RORE % is 0.35. Distribution Solutions Group's value of 3,760.00 is 1074185.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for an Industrial Distribution company?
The median 5-Year RORE % among Industrial Distribution companies is 0.35, based on 136 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Distribution Solutions Group's current 5-Year RORE % of 3,760.00 is 1074185.7% above 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Distribution Solutions Group and its competitors. For the Industrial Distribution industry, the median 5-Year RORE % is 0.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Distribution Solutions Group's current 5-Year RORE % is 3,760.00. 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 5-Year RORE % of 3,760.00. 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 5-Year RORE % is 3,760.00 and 1074185.7% above the Industrial Distribution industry median of 0.35. 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 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Distribution Solutions Group (FRA:LW2), the current 5-Year RORE % is 3,760.00 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:
5-Year RORE %: 3,760.00
GF Value™: €28.05 vs. price of €29.40 (4.8% above fair value)
Industry Position: 1074185.7% above the Industrial Distribution median (#1 of 136)
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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5-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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