DXP ENTERPRISES INC (DXPE) Stock Fundamental Analysis
USA - NASDAQ:DXPE - US2333774071 - Common Stock
120.5 USD
+2.25 (+1.9%)
115 USD
-5.5 (-4.56%)
Overall DXPE gets a fundamental rating of 5 out of 10. We evaluated DXPE against 49 industry peers in the Trading Companies & Distributors industry. DXPE has an excellent profitability rating, 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
With a decent Return On Assets value of 6.13%, DXPE is doing good in the industry, outperforming 67.35% of the companies in the same industry.
With a decent Return On Equity value of 18.50%, DXPE is doing good in the industry, outperforming 73.47% of the companies in the same industry.
DXPE has a Return On Invested Capital of 11.97%. This is in the better half of the industry: DXPE outperforms 79.59% 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 10.03%.
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
DXPE has a Profit Margin (4.51%) which is comparable to the rest of the industry.
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 65.31% 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 57.14% of its industry peers.
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
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
DXPE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DXPE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.76 indicates that DXPE is not in any danger for bankruptcy at the moment.
DXPE has a Altman-Z score of 3.76. This is in the better half of the industry: DXPE outperforms 71.43% of its industry peers.
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 57.14% of the companies in the same industry.
A Debt/Equity ratio of 1.33 is on the high side and indicates that DXPE has dependencies on debt financing.
The Debt to Equity ratio of DXPE (1.33) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 16.28 | ||
| Altman-Z | 3.76 |
ROIC/WACC1.15
WACC10.41%
2.3 Liquidity
DXPE has a Current Ratio of 2.79. This indicates that DXPE is financially healthy and has no problem in meeting 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 71.43% of the companies in the same industry.
A Quick Ratio of 2.33 indicates that DXPE has no problem at all paying its short term obligations.
DXPE has a better Quick ratio (2.33) than 81.63% 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.
DXPE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.34% yearly.
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.
The Revenue is expected to grow by 6.63% on average over the next years.
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
A Price/Earnings ratio of 23.00 indicates a rather expensive valuation of DXPE.
Compared to the rest of the industry, the Price/Earnings ratio of DXPE is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.34. DXPE is around the same levels.
The Price/Forward Earnings ratio is 18.69, which indicates a rather expensive current valuation of DXPE.
DXPE's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of DXPE to the average of the S&P500 Index (22.86), we can say DXPE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 18.69 |
4.2 Price Multiples
DXPE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DXPE is cheaper than 63.27% of the companies in the same industry.
DXPE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.11 | ||
| EV/EBITDA | 11.52 |
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.
DXPE's earnings are expected to grow with 19.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)1.38
EPS Next 2Y23.45%
EPS Next 3Y19.01%
5. Dividend
5.1 Amount
No dividends for DXPE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
120.5
+2.25 (+1.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners73.47%
Inst Owner Change-0.3%
Ins Owners18.24%
Ins Owner Change-2.15%
Market Cap1.89B
Analysts85.71
Price Target127.5 (5.81%)
Short Float %3.55%
Short Ratio2.6
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)0%
PT rev (3m)31.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.38%
EPS NY rev (1m)0%
EPS NY rev (3m)3.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 18.69 | ||
| P/S | 0.99 | ||
| P/FCF | 49.11 | ||
| P/OCF | 23.03 | ||
| P/B | 4.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.52 |
EPS(TTM)5.24
EY4.35%
EPS(NY)6.45
Fwd EY5.35%
FCF(TTM)2.45
FCFY2.04%
OCF(TTM)5.23
OCFY4.34%
SpS122.31
BVpS29.83
TBVpS-4.57
PEG (NY)0.71
PEG (5Y)1.38
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 | 3.76 |
F-Score6
WACC10.41%
ROIC/WACC1.15
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 Year57.04%
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%