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DXP ENTERPRISES INC (DXPE) Stock Fundamental Analysis

NASDAQ:DXPE - Nasdaq - US2333774071 - Common Stock - Currency: USD

78.45  -4.82 (-5.79%)

After market: 83 +4.55 (+5.8%)

Fundamental Rating

5

Taking everything into account, DXPE scores 5 out of 10 in our fundamental rating. DXPE was compared to 48 industry peers in the Trading Companies & Distributors industry. DXPE has only an average score on both its financial health and profitability. DXPE has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year DXPE was profitable.
In the past year DXPE had a positive cash flow from operations.
DXPE had positive earnings in 4 of the past 5 years.
In the past 5 years DXPE always reported a positive cash flow from operatings.
DXPE Yearly Net Income VS EBIT VS OCF VS FCFDXPE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M

1.2 Ratios

DXPE's Return On Assets of 5.28% is fine compared to the rest of the industry. DXPE outperforms 62.50% of its industry peers.
DXPE's Return On Equity of 16.16% is in line compared to the rest of the industry. DXPE outperforms 56.25% of its industry peers.
The Return On Invested Capital of DXPE (10.56%) is better than 72.92% of its industry peers.
DXPE had an Average Return On Invested Capital over the past 3 years of 8.13%. This is in line with the industry average of 9.53%.
The last Return On Invested Capital (10.56%) for DXPE is above the 3 year average (8.13%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.28%
ROE 16.16%
ROIC 10.56%
ROA(3y)4.1%
ROA(5y)2.72%
ROE(3y)11.98%
ROE(5y)7.64%
ROIC(3y)8.13%
ROIC(5y)7.14%
DXPE Yearly ROA, ROE, ROICDXPE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10

1.3 Margins

Looking at the Profit Margin, with a value of 3.74%, DXPE is in line with its industry, outperforming 45.83% of the companies in the same industry.
DXPE's Profit Margin has improved in the last couple of years.
The Operating Margin of DXPE (7.84%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DXPE has grown nicely.
The Gross Margin of DXPE (30.53%) is comparable to the rest of the industry.
DXPE's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.84%
PM (TTM) 3.74%
GM 30.53%
OM growth 3Y37.35%
OM growth 5Y7.01%
PM growth 3YN/A
PM growth 5Y5.43%
GM growth 3Y2.97%
GM growth 5Y1.78%
DXPE Yearly Profit, Operating, Gross MarginsDXPE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

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5

2. Health

2.1 Basic Checks

DXPE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DXPE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DXPE has less shares outstanding
DXPE has a worse debt/assets ratio than last year.
DXPE Yearly Shares OutstandingDXPE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M
DXPE Yearly Total Debt VS Total AssetsDXPE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

DXPE has an Altman-Z score of 3.44. This indicates that DXPE is financially healthy and has little risk of bankruptcy at the moment.
DXPE has a better Altman-Z score (3.44) than 70.83% of its industry peers.
The Debt to FCF ratio of DXPE is 5.73, which is a neutral value as it means it would take DXPE, 5.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.73, DXPE is in line with its industry, outperforming 58.33% of the companies in the same industry.
A Debt/Equity ratio of 1.29 is on the high side and indicates that DXPE has dependencies on debt financing.
DXPE has a Debt to Equity ratio of 1.29. This is in the lower half of the industry: DXPE underperforms 64.58% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.29
Debt/FCF 5.73
Altman-Z 3.44
ROIC/WACC0.94
WACC11.26%
DXPE Yearly LT Debt VS Equity VS FCFDXPE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

2.3 Liquidity

A Current Ratio of 2.22 indicates that DXPE has no problem at all paying its short term obligations.
The Current ratio of DXPE (2.22) is better than 60.42% of its industry peers.
A Quick Ratio of 1.78 indicates that DXPE should not have too much problems paying its short term obligations.
DXPE's Quick ratio of 1.78 is amongst the best of the industry. DXPE outperforms 81.25% of its industry peers.
Industry RankSector Rank
Current Ratio 2.22
Quick Ratio 1.78
DXPE Yearly Current Assets VS Current LiabilitesDXPE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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4

3. Growth

3.1 Past

DXPE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.52%, which is quite good.
DXPE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.05% yearly.
DXPE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.60%.
Measured over the past years, DXPE shows a small growth in Revenue. The Revenue has been growing by 6.61% on average per year.
EPS 1Y (TTM)17.52%
EPS 3Y70.85%
EPS 5Y15.05%
EPS Q2Q%36.56%
Revenue 1Y (TTM)3.6%
Revenue growth 3Y18.64%
Revenue growth 5Y6.61%
Sales Q2Q%12.81%

3.2 Future

The Earnings Per Share is expected to grow by 9.08% on average over the next years. This is quite good.
Based on estimates for the next years, DXPE will show a small growth in Revenue. The Revenue will grow by 4.64% on average per year.
EPS Next Y0.16%
EPS Next 2Y6.31%
EPS Next 3Y9.08%
EPS Next 5YN/A
Revenue Next Year5.65%
Revenue Next 2Y4.92%
Revenue Next 3Y4.64%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
DXPE Yearly Revenue VS EstimatesDXPE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
DXPE Yearly EPS VS EstimatesDXPE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.17, which indicates a rather expensive current valuation of DXPE.
DXPE's Price/Earnings ratio is in line with the industry average.
DXPE is valuated rather cheaply when we compare the Price/Earnings ratio to 29.16, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.84, DXPE is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as DXPE.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.95, DXPE is valued at the same level.
Industry RankSector Rank
PE 20.17
Fwd PE 17.84
DXPE Price Earnings VS Forward Price EarningsDXPE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DXPE is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, DXPE is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 13.43
EV/EBITDA 10.61
DXPE Per share dataDXPE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80 100

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DXPE may justify a higher PE ratio.
PEG (NY)122.58
PEG (5Y)1.34
EPS Next 2Y6.31%
EPS Next 3Y9.08%

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0

5. Dividend

5.1 Amount

DXPE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DXP ENTERPRISES INC

NASDAQ:DXPE (3/6/2025, 7:22:55 PM)

After market: 83 +4.55 (+5.8%)

78.45

-4.82 (-5.79%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)03-05 2025-03-05/bmo
Earnings (Next)05-06 2025-05-06/bmo
Inst Owners76.99%
Inst Owner Change-3.33%
Ins Owners18.76%
Ins Owner Change-0.08%
Market Cap1.23B
Analysts85.71
Price Target76.5 (-2.49%)
Short Float %4.64%
Short Ratio2.07
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.01
Dividend Growth(5Y)-1.79%
DP0.09%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.81%
Min EPS beat(2)22.55%
Max EPS beat(2)31.06%
EPS beat(4)3
Avg EPS beat(4)191.76%
Min EPS beat(4)-7.48%
Max EPS beat(4)720.92%
EPS beat(8)5
Avg EPS beat(8)118.8%
EPS beat(12)8
Avg EPS beat(12)156.94%
EPS beat(16)10
Avg EPS beat(16)130.29%
Revenue beat(2)2
Avg Revenue beat(2)2.66%
Min Revenue beat(2)0.65%
Max Revenue beat(2)4.66%
Revenue beat(4)2
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-2.9%
Max Revenue beat(4)4.66%
Revenue beat(8)4
Avg Revenue beat(8)1.41%
Revenue beat(12)8
Avg Revenue beat(12)2.77%
Revenue beat(16)9
Avg Revenue beat(16)2.14%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 20.17
Fwd PE 17.84
P/S 0.71
P/FCF 13.43
P/OCF 10.94
P/B 3.06
P/tB N/A
EV/EBITDA 10.61
EPS(TTM)3.89
EY4.96%
EPS(NY)4.4
Fwd EY5.6%
FCF(TTM)5.84
FCFY7.45%
OCF(TTM)7.17
OCFY9.14%
SpS110.78
BVpS25.64
TBVpS-8.61
PEG (NY)122.58
PEG (5Y)1.34
Profitability
Industry RankSector Rank
ROA 5.28%
ROE 16.16%
ROCE 13.88%
ROIC 10.56%
ROICexc 10.95%
ROICexgc 25.31%
OM 7.84%
PM (TTM) 3.74%
GM 30.53%
FCFM 5.27%
ROA(3y)4.1%
ROA(5y)2.72%
ROE(3y)11.98%
ROE(5y)7.64%
ROIC(3y)8.13%
ROIC(5y)7.14%
ROICexc(3y)9.24%
ROICexc(5y)8.08%
ROICexgc(3y)19.79%
ROICexgc(5y)16.7%
ROCE(3y)10.69%
ROCE(5y)9.38%
ROICexcg growth 3Y44.54%
ROICexcg growth 5Y5.78%
ROICexc growth 3Y49.44%
ROICexc growth 5Y5.05%
OM growth 3Y37.35%
OM growth 5Y7.01%
PM growth 3YN/A
PM growth 5Y5.43%
GM growth 3Y2.97%
GM growth 5Y1.78%
F-Score5
Asset Turnover1.41
Health
Industry RankSector Rank
Debt/Equity 1.29
Debt/FCF 5.73
Debt/EBITDA 3.07
Cap/Depr 63.16%
Cap/Sales 1.2%
Interest Coverage 250
Cash Conversion 66.46%
Profit Quality 140.92%
Current Ratio 2.22
Quick Ratio 1.78
Altman-Z 3.44
F-Score5
WACC11.26%
ROIC/WACC0.94
Cap/Depr(3y)26.33%
Cap/Depr(5y)39.24%
Cap/Sales(3y)0.53%
Cap/Sales(5y)0.8%
Profit Quality(3y)109.48%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.52%
EPS 3Y70.85%
EPS 5Y15.05%
EPS Q2Q%36.56%
EPS Next Y0.16%
EPS Next 2Y6.31%
EPS Next 3Y9.08%
EPS Next 5YN/A
Revenue 1Y (TTM)3.6%
Revenue growth 3Y18.64%
Revenue growth 5Y6.61%
Sales Q2Q%12.81%
Revenue Next Year5.65%
Revenue Next 2Y4.92%
Revenue Next 3Y4.64%
Revenue Next 5YN/A
EBIT growth 1Y2.54%
EBIT growth 3Y62.95%
EBIT growth 5Y14.08%
EBIT Next Year39.55%
EBIT Next 3Y17.07%
EBIT Next 5YN/A
FCF growth 1Y798.57%
FCF growth 3Y-3.02%
FCF growth 5Y28.81%
OCF growth 1Y577.65%
OCF growth 3Y-1.07%
OCF growth 5Y24.3%