128.55 USD
-3.54 (-2.68%)
128.55 USD
0 (0%)
Taking everything into account, DXPE scores 6 out of 10 in our fundamental rating. DXPE was compared to 50 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year DXPE was profitable.
- 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
- The Return On Assets of DXPE (6.03%) is better than 66.00% of its industry peers.
- DXPE has a Return On Equity of 17.84%. This is in the better half of the industry: DXPE outperforms 74.00% of its industry peers.
- DXPE has a Return On Invested Capital of 12.46%. This is amongst the best in the industry. DXPE outperforms 82.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DXPE is in line with the industry average of 9.64%.
- The 3 year average ROIC (10.75%) for DXPE is below the current ROIC(12.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 17.84% | ||
| ROIC | 12.46% |
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 (4.44%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of DXPE has grown nicely.
- With a decent Operating Margin value of 9.28%, DXPE is doing good in the industry, outperforming 64.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of DXPE has grown nicely.
- DXPE's Gross Margin of 31.52% is in line compared to the rest of the industry. DXPE outperforms 58.00% of its industry peers.
- In the last couple of years the Gross Margin of DXPE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.28% | ||
| PM (TTM) | 4.44% | ||
| GM | 31.52% |
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DXPE is still creating some value.
- DXPE has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for DXPE has been reduced compared to 5 years ago.
- The debt/assets ratio for DXPE is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.90 indicates that DXPE is not in any danger for bankruptcy at the moment.
- DXPE has a Altman-Z score of 3.90. This is comparable to the rest of the industry: DXPE outperforms 60.00% of its industry peers.
- The Debt to FCF ratio of DXPE is 14.82, which is on the high side as it means it would take DXPE, 14.82 years of fcf income to pay off all of its debts.
- DXPE has a Debt to FCF ratio of 14.82. This is comparable to the rest of the industry: DXPE outperforms 54.00% of its industry peers.
- DXPE has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
- DXPE's Debt to Equity ratio of 1.27 is on the low side compared to the rest of the industry. DXPE is outperformed by 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 14.82 | ||
| Altman-Z | 3.9 |
ROIC/WACC1.17
WACC10.69%
2.3 Liquidity
- DXPE has a Current Ratio of 2.77. This indicates that DXPE is financially healthy and has no problem in meeting its short term obligations.
- DXPE has a Current ratio of 2.77. This is in the better half of the industry: DXPE outperforms 74.00% of its industry peers.
- DXPE has a Quick Ratio of 2.36. This indicates that DXPE is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 2.36, DXPE belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
- DXPE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.73%, 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 12.76% in the past year. This is quite good.
- The Revenue has been growing slightly by 7.34% on average over the past years.
EPS 1Y (TTM)35.73%
EPS 3Y72.09%
EPS 5Y16.63%
EPS Q2Q%3.15%
Revenue 1Y (TTM)12.76%
Revenue growth 3Y17.39%
Revenue growth 5Y7.34%
Sales Q2Q%8.62%
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 Y21.53%
EPS Next 2Y23.74%
EPS Next 3Y20.37%
EPS Next 5Y21.68%
Revenue Next Year11.96%
Revenue Next 2Y8.99%
Revenue Next 3Y8.36%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 24.35, which indicates a rather expensive current valuation of DXPE.
- DXPE's Price/Earnings is on the same level as the industry average.
- DXPE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 19.85, DXPE is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as DXPE.
- DXPE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.35 | ||
| Fwd PE | 19.85 |
4.2 Price Multiples
- 64.00% of the companies in the same industry are more expensive than DXPE, based on the Enterprise Value to EBITDA ratio.
- DXPE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.7 | ||
| EV/EBITDA | 11.73 |
4.3 Compensation for Growth
- DXPE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of DXPE may justify a higher PE ratio.
- DXPE's earnings are expected to grow with 20.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)1.46
EPS Next 2Y23.74%
EPS Next 3Y20.37%
5. Dividend
5.1 Amount
- DXPE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DXP ENTERPRISES INC / DXPE FAQ
What is the fundamental rating for DXPE stock?
ChartMill assigns a fundamental rating of 6 / 10 to DXPE.
What is the valuation status of DXP ENTERPRISES INC (DXPE) stock?
ChartMill assigns a valuation rating of 4 / 10 to DXP ENTERPRISES INC (DXPE). This can be considered as Fairly Valued.
Can you provide the profitability details for DXP ENTERPRISES INC?
DXP ENTERPRISES INC (DXPE) has a profitability rating of 7 / 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 21.53% in the next year.
Is the dividend of DXP ENTERPRISES INC sustainable?
The dividend rating of DXP ENTERPRISES INC (DXPE) is 0 / 10 and the dividend payout ratio is 0.1%.