DXP ENTERPRISES INC (DXPE) Stock Fundamental Analysis
USA - NASDAQ:DXPE - US2333774071 - Common Stock
100.37 USD
-21.64 (-17.74%)
103 USD
+2.63 (+2.62%)
Taking everything into account, DXPE scores 6 out of 10 in our fundamental rating. DXPE was compared to 51 industry peers in the Trading Companies & Distributors industry. DXPE scores excellent on profitability, but there are some minor concerns on its financial health. DXPE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DXPE had positive earnings in the past year.
DXPE had a positive operating cash flow in the past year.
Of the past 5 years DXPE 4 years were profitable.
DXPE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.13%, DXPE is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.50%, DXPE is in the better half of the industry, outperforming 72.55% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.97%, DXPE belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DXPE is in line with the industry average of 10.20%.
The 3 year average ROIC (10.75%) for DXPE is below the current ROIC(11.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 18.5% | ||
| ROIC | 11.97% |
ROA(3y)5.23%
ROA(5y)2.83%
ROE(3y)15.95%
ROE(5y)8.89%
ROIC(3y)10.75%
ROIC(5y)8.08%
1.3 Margins
DXPE has a Profit Margin of 4.51%. This is comparable to the rest of the industry: DXPE outperforms 54.90% of its industry peers.
In the last couple of years the Profit Margin of DXPE has grown nicely.
DXPE's Operating Margin of 8.98% is fine compared to the rest of the industry. DXPE outperforms 64.71% of its industry peers.
In the last couple of years the Operating Margin of DXPE has grown nicely.
DXPE has a Gross Margin (31.40%) which is comparable to the rest of the industry.
DXPE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.98% | ||
| PM (TTM) | 4.51% | ||
| GM | 31.4% |
OM growth 3Y31.56%
OM growth 5Y8.89%
PM growth 3Y38.44%
PM growth 5Y6.01%
GM growth 3Y1.53%
GM growth 5Y2.22%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DXPE is creating some value.
The number of shares outstanding for DXPE has been reduced compared to 1 year ago.
Compared to 5 years ago, DXPE has less shares outstanding
Compared to 1 year ago, DXPE has a worse debt to assets ratio.
2.2 Solvency
DXPE has an Altman-Z score of 3.78. This indicates that DXPE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.78, DXPE is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
The Debt to FCF ratio of DXPE is 16.28, which is on the high side as it means it would take DXPE, 16.28 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 16.28, DXPE perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
DXPE has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
DXPE has a Debt to Equity ratio of 1.33. This is in the lower half of the industry: DXPE underperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 16.28 | ||
| Altman-Z | 3.78 |
ROIC/WACC1.14
WACC10.54%
2.3 Liquidity
A Current Ratio of 2.79 indicates that DXPE has no problem at all paying its short term obligations.
DXPE has a better Current ratio (2.79) than 72.55% of its industry peers.
DXPE has a Quick Ratio of 2.33. This indicates that DXPE is financially healthy and has no problem in meeting its short term obligations.
DXPE's Quick ratio of 2.33 is amongst the best of the industry. DXPE outperforms 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
DXPE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.61%, which is quite impressive.
The Earnings Per Share has been growing by 16.63% on average over the past years. This is quite good.
The Revenue has grown by 13.93% in the past year. This is quite good.
Measured over the past years, DXPE shows a small growth in Revenue. The Revenue has been growing by 7.34% on average per year.
EPS 1Y (TTM)47.61%
EPS 3Y72.09%
EPS 5Y16.63%
EPS Q2Q%43%
Revenue 1Y (TTM)13.93%
Revenue growth 3Y17.39%
Revenue growth 5Y7.34%
Sales Q2Q%11.92%
3.2 Future
Based on estimates for the next years, DXPE will show a very strong growth in Earnings Per Share. The EPS will grow by 21.68% on average per year.
The Revenue is expected to grow by 7.74% on average over the next years.
EPS Next Y32.14%
EPS Next 2Y23.51%
EPS Next 3Y19.1%
EPS Next 5Y21.68%
Revenue Next Year10.25%
Revenue Next 2Y8.44%
Revenue Next 3Y7.78%
Revenue Next 5Y7.74%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DXPE is valuated rather expensively with a Price/Earnings ratio of 19.15.
Compared to the rest of the industry, the Price/Earnings ratio of DXPE is on the same level as its industry peers.
DXPE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.67.
DXPE is valuated correctly with a Price/Forward Earnings ratio of 15.55.
The rest of the industry has a similar Price/Forward Earnings ratio as DXPE.
When comparing the Price/Forward Earnings ratio of DXPE to the average of the S&P500 Index (31.86), we can say DXPE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.15 | ||
| Fwd PE | 15.55 |
4.2 Price Multiples
DXPE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DXPE is cheaper than 60.78% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as DXPE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.91 | ||
| EV/EBITDA | 11.64 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DXPE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DXPE's earnings are expected to grow with 19.10% in the coming years.
PEG (NY)0.6
PEG (5Y)1.15
EPS Next 2Y23.51%
EPS Next 3Y19.1%
5. Dividend
5.1 Amount
DXPE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
100.37
-21.64 (-17.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners73.47%
Inst Owner Change-0.29%
Ins Owners18.24%
Ins Owner Change-2.15%
Market Cap1.57B
Revenue(TTM)1.92B
Net Income(TTM)86.58M
Analysts84.44
Price Target140.76 (40.24%)
Short Float %3.36%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)-0.35%
DP0.1%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.92%
Min EPS beat(2)0.86%
Max EPS beat(2)2.98%
EPS beat(4)4
Avg EPS beat(4)19.25%
Min EPS beat(4)0.86%
Max EPS beat(4)42.1%
EPS beat(8)6
Avg EPS beat(8)101%
EPS beat(12)9
Avg EPS beat(12)85.32%
EPS beat(16)11
Avg EPS beat(16)119.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-2.05%
Max Revenue beat(2)-2.02%
Revenue beat(4)2
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-2.05%
Max Revenue beat(4)4.66%
Revenue beat(8)3
Avg Revenue beat(8)-0.63%
Revenue beat(12)6
Avg Revenue beat(12)1.5%
Revenue beat(16)9
Avg Revenue beat(16)1.77%
PT rev (1m)10.4%
PT rev (3m)45.26%
EPS NQ rev (1m)0.7%
EPS NQ rev (3m)5.11%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)3.79%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.15 | ||
| Fwd PE | 15.55 | ||
| P/S | 0.82 | ||
| P/FCF | 40.91 | ||
| P/OCF | 19.18 | ||
| P/B | 3.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.64 |
EPS(TTM)5.24
EY5.22%
EPS(NY)6.45
Fwd EY6.43%
FCF(TTM)2.45
FCFY2.44%
OCF(TTM)5.23
OCFY5.21%
SpS122.31
BVpS29.83
TBVpS-4.57
PEG (NY)0.6
PEG (5Y)1.15
Graham Number59.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 18.5% | ||
| ROCE | 14.77% | ||
| ROIC | 11.97% | ||
| ROICexc | 13.25% | ||
| ROICexgc | 27.16% | ||
| OM | 8.98% | ||
| PM (TTM) | 4.51% | ||
| GM | 31.4% | ||
| FCFM | 2.01% |
ROA(3y)5.23%
ROA(5y)2.83%
ROE(3y)15.95%
ROE(5y)8.89%
ROIC(3y)10.75%
ROIC(5y)8.08%
ROICexc(3y)12.37%
ROICexc(5y)9.26%
ROICexgc(3y)26.83%
ROICexgc(5y)20.35%
ROCE(3y)13.26%
ROCE(5y)9.97%
ROICexgc growth 3Y36.34%
ROICexgc growth 5Y12.66%
ROICexc growth 3Y36.72%
ROICexc growth 5Y6.29%
OM growth 3Y31.56%
OM growth 5Y8.89%
PM growth 3Y38.44%
PM growth 5Y6.01%
GM growth 3Y1.53%
GM growth 5Y2.22%
F-Score6
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 16.28 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 119.92% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 2.67 | ||
| Cash Conversion | 39.35% | ||
| Profit Quality | 44.47% | ||
| Current Ratio | 2.79 | ||
| Quick Ratio | 2.33 | ||
| Altman-Z | 3.78 |
F-Score6
WACC10.54%
ROIC/WACC1.14
Cap/Depr(3y)43.97%
Cap/Depr(5y)36.71%
Cap/Sales(3y)0.82%
Cap/Sales(5y)0.73%
Profit Quality(3y)82.79%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)47.61%
EPS 3Y72.09%
EPS 5Y16.63%
EPS Q2Q%43%
EPS Next Y32.14%
EPS Next 2Y23.51%
EPS Next 3Y19.1%
EPS Next 5Y21.68%
Revenue 1Y (TTM)13.93%
Revenue growth 3Y17.39%
Revenue growth 5Y7.34%
Sales Q2Q%11.92%
Revenue Next Year10.25%
Revenue Next 2Y8.44%
Revenue Next 3Y7.78%
Revenue Next 5Y7.74%
EBIT growth 1Y29.97%
EBIT growth 3Y54.44%
EBIT growth 5Y16.87%
EBIT Next Year57.04%
EBIT Next 3Y21.55%
EBIT Next 5Y18%
FCF growth 1Y148.37%
FCF growth 3Y35.37%
FCF growth 5Y32.07%
OCF growth 1Y239.28%
OCF growth 3Y40.19%
OCF growth 5Y19.87%
DXP ENTERPRISES INC / DXPE FAQ
What is the fundamental rating for DXPE stock?
ChartMill assigns a fundamental rating of 6 / 10 to DXPE.
Can you provide the valuation status for DXP ENTERPRISES INC?
ChartMill assigns a valuation rating of 5 / 10 to DXP ENTERPRISES INC (DXPE). This can be considered as Fairly Valued.
What is the profitability of DXPE stock?
DXP ENTERPRISES INC (DXPE) has a profitability rating of 7 / 10.
How financially healthy is DXP ENTERPRISES INC?
The financial health rating of DXP ENTERPRISES INC (DXPE) is 6 / 10.
What is the expected EPS growth for DXP ENTERPRISES INC (DXPE) stock?
The Earnings per Share (EPS) of DXP ENTERPRISES INC (DXPE) is expected to grow by 32.14% in the next year.