DXP ENTERPRISES INC (DXPE) Stock Fundamental Analysis
USA - NASDAQ:DXPE - US2333774071 - Common Stock
118.06 USD
-0.33 (-0.28%)
118.06 USD
0 (0%)
Overall DXPE gets a fundamental rating of 5 out of 10. We evaluated DXPE against 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 is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years DXPE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.13%, DXPE is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
DXPE has a Return On Equity of 18.50%. This is in the better half of the industry: DXPE outperforms 74.00% of its industry peers.
The Return On Invested Capital of DXPE (11.97%) is better than 80.00% 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 9.98%.
The last Return On Invested Capital (11.97%) for DXPE is above the 3 year average (10.75%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 4.51%, DXPE perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
In the last couple of years the Profit Margin of DXPE has grown nicely.
DXPE has a Operating Margin of 8.98%. This is in the better half of the industry: DXPE outperforms 66.00% of its industry peers.
In the last couple of years the Operating Margin of DXPE has grown nicely.
DXPE's Gross Margin of 31.40% 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 | 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
DXPE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, DXPE has less shares outstanding
The number of shares outstanding for DXPE has been reduced compared to 5 years ago.
DXPE has a worse debt/assets ratio than last year.
2.2 Solvency
DXPE has an Altman-Z score of 3.74. 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 3.74, DXPE is in the better half of the industry, outperforming 68.00% 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.
Looking at the Debt to FCF ratio, with a value of 16.28, DXPE is in line with its industry, outperforming 54.00% 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.
The Debt to Equity ratio of DXPE (1.33) is worse than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 16.28 | ||
| Altman-Z | 3.74 |
ROIC/WACC1.13
WACC10.62%
2.3 Liquidity
A Current Ratio of 2.79 indicates that DXPE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.79, DXPE is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
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.
With an excellent Quick ratio value of 2.33, DXPE belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
| 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.
Looking at the last year, DXPE shows a quite strong growth in Revenue. The Revenue has grown by 13.93% in the last year.
The Revenue has been growing slightly by 7.34% on average over the past years.
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
The Earnings Per Share is expected to grow by 19.01% on average over the next years. This is quite good.
DXPE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.63% yearly.
EPS Next Y32.38%
EPS Next 2Y23.45%
EPS Next 3Y19.01%
EPS Next 5YN/A
Revenue Next Year10.64%
Revenue Next 2Y7.59%
Revenue Next 3Y6.63%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 22.53, DXPE is valued on the expensive side.
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 27.30.
A Price/Forward Earnings ratio of 18.31 indicates a rather expensive valuation of DXPE.
DXPE's Price/Forward Earnings is on the same level as the industry average.
DXPE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DXPE indicates a somewhat cheap valuation: DXPE is cheaper than 64.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DXPE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.12 | ||
| EV/EBITDA | 11.34 |
4.3 Compensation for Growth
DXPE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DXPE may justify a higher PE ratio.
A more expensive valuation may be justified as DXPE's earnings are expected to grow with 19.01% in the coming years.
PEG (NY)0.7
PEG (5Y)1.35
EPS Next 2Y23.45%
EPS Next 3Y19.01%
5. Dividend
5.1 Amount
DXPE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
118.06
-0.33 (-0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners72.51%
Inst Owner Change0.4%
Ins Owners18.36%
Ins Owner Change-1.84%
Market Cap1.85B
Analysts85.71
Price Target127.5 (8%)
Short Float %3.54%
Short Ratio2.15
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)31.58%
PT rev (3m)31.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.38%
EPS NY rev (1m)3.98%
EPS NY rev (3m)3.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 18.31 | ||
| P/S | 0.97 | ||
| P/FCF | 48.12 | ||
| P/OCF | 22.56 | ||
| P/B | 3.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.34 |
EPS(TTM)5.24
EY4.44%
EPS(NY)6.45
Fwd EY5.46%
FCF(TTM)2.45
FCFY2.08%
OCF(TTM)5.23
OCFY4.43%
SpS122.31
BVpS29.83
TBVpS-4.57
PEG (NY)0.7
PEG (5Y)1.35
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%
ROICexcg growth 3Y36.34%
ROICexcg 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 | 3.74 |
F-Score6
WACC10.62%
ROIC/WACC1.13
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 Y32.38%
EPS Next 2Y23.45%
EPS Next 3Y19.01%
EPS Next 5YN/A
Revenue 1Y (TTM)13.93%
Revenue growth 3Y17.39%
Revenue growth 5Y7.34%
Sales Q2Q%11.92%
Revenue Next Year10.64%
Revenue Next 2Y7.59%
Revenue Next 3Y6.63%
Revenue Next 5YN/A
EBIT growth 1Y29.97%
EBIT growth 3Y54.44%
EBIT growth 5Y16.87%
EBIT Next Year51.41%
EBIT Next 3Y21.55%
EBIT Next 5YN/A
FCF growth 1Y148.37%
FCF growth 3Y35.37%
FCF growth 5Y32.07%
OCF growth 1Y239.28%
OCF growth 3Y40.19%
OCF growth 5Y19.87%