DXP Enterprises (DXPE) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: N/A
• Average Volume (3M): 135.84K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.61
• Revenue Growth: 12.76%
• EPS Growth: 36.11%
• Country: US
• Employees: 3,028
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 1.34
• Shares Outstanding: 15,679,290
• 10 Day Avg. Volume: 125,245
• 30 Day Avg. Volume: 135,843
• PEG Ratio: 2.11
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 16.99
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 4.10
• Enterprise Value/Ebitda: 12.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $131.00 ▲(11.05% Upside)

Score is driven primarily by strong financial performance (improving profitability and solid cash generation) and a constructive earnings update (record sales and stable EBITDA margins with positive 2026 outlook). Technicals are supportive but show stretched momentum, while valuation is only moderate and lacks dividend support.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Improved cash generation enhances financial flexibility, enabling strategic investments and reducing reliance on external financing.

Innovative Pumping Solutions Growth

Growth in this segment underscores the company's competitive edge in specialized solutions, bolstering its market position.

Negative Factors

Supply Chain Services Decline

A decline in this segment could indicate challenges in adapting to market conditions, potentially impacting overall revenue growth.

Higher SG&A Expenses

Rising SG&A expenses can pressure margins, reducing profitability unless offset by revenue growth or cost efficiencies.

Increased Debt Levels

Higher debt levels, despite favorable terms, can increase financial risk and limit future borrowing capacity.

DXP Enterprises Business Overview & Revenue Model

Company Description

DXP Enterprises, Inc., together with its subsidiaries, engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services to the energy and industrial customers primarily in the United States and Canada. It operates through three segments: Service Centers (SC), Supply Chain Services (SCS), and Innovative Pumping Solutions (IPS). The SC segment offers MRO products, equipment, and integrated services, including technical expertise and logistics services. It offers a range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products, and safety services categories. This segment serves customers in the oil and gas, food and beverage, petrochemical, transportation, other general industrial, mining, construction, chemical, municipal, agriculture, and pulp and paper industries. The SCS segment manages procurement and inventory management solutions; and offers outsourced MRO solutions for sourcing MRO products, including inventory optimization and management, store room management, transaction consolidation and control, vendor oversight and procurement cost optimization, productivity improvement, and customized reporting services. Its programs include SmartAgreement, a procurement solution for various MRO categories; SmartBuy, an on-site or centralized MRO procurement solution; SmartSource, an on-site procurement and storeroom management solution; SmartStore, an e-Catalog solution; SmartVend, an industrial dispensing solution; and SmartServ, an integrated service pump solution. The IPS segment fabricates and assembles custom-made pump packages, remanufactures pumps, and manufactures branded private label pumps. The company was founded in 1908 and is based in Houston, Texas.

How the Company Makes Money

DXP Enterprises generates revenue primarily through the sale of industrial products and services. The company's revenue model is diversified across multiple segments, with key revenue streams including product sales from its Service Centers, which supply essential industrial equipment and parts, and Supply Chain Services that offer inventory management and logistics solutions. Additionally, DXP provides Innovative Pumping Solutions that encompass engineered pump systems and related services. Significant partnerships with manufacturers and suppliers enhance its product offerings and expand its market reach, contributing to consistent earnings through both direct sales and service contracts with various industrial clients.

DXP Enterprises Financial Statement Overview

Summary

DXP Enterprises shows strong financial performance with consistent revenue growth and improved profitability. The balance sheet reflects reduced leverage and enhanced equity returns, while cash flow metrics indicate solid cash generation. However, there are operational challenges as indicated by a slight decrease in EBIT margin.

Income Statement

DXP Enterprises has shown consistent revenue growth, with a TTM revenue growth rate of 2.13% and a strong historical trend. The gross profit margin has improved to 31.52% in TTM, indicating efficient cost management. The net profit margin has also increased to 4.45%, reflecting enhanced profitability. However, the EBIT margin has slightly decreased in TTM, suggesting some operational challenges.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.14 in TTM, indicating reduced leverage and a stronger equity position. Return on equity has increased to 19.11%, showcasing effective use of equity to generate profits. However, the equity ratio remains moderate, suggesting room for further strengthening of the balance sheet.

Cash Flow

DXP Enterprises has demonstrated positive free cash flow growth of 9.79% in TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.34, showing a reasonable conversion of income to cash. The free cash flow to net income ratio of 0.48 suggests a healthy cash flow relative to profits, although there is potential for further improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.96B	1.80B	1.68B	1.48B	1.11B	1.01B
Gross Profit	617.83M	556.28M	505.29M	422.04M	328.51M	277.20M
EBITDA	210.05M	182.30M	170.18M	123.54M	67.41M	-3.18M
Net Income	87.19M	70.49M	68.81M	48.16M	16.50M	-29.27M
Balance Sheet
Total Assets	1.44B	1.35B	1.18B	1.04B	906.19M	868.13M
Cash, Cash Equivalents and Short-Term Investments	123.83M	148.32M	173.12M	46.03M	48.99M	119.33M
Total Debt	687.69M	676.36M	575.97M	471.85M	376.82M	374.34M
Total Liabilities	956.12M	926.71M	796.56M	671.89M	547.50M	507.00M
Stockholders Equity	488.34M	422.79M	380.88M	365.39M	358.64M	360.34M
Cash Flow
Free Cash Flow	42.13M	77.14M	93.96M	978.00K	31.09M	101.00M
Operating Cash Flow	88.52M	102.21M	106.22M	5.89M	37.09M	107.67M
Investing Cash Flow	-75.31M	-181.69M	-22.65M	-53.42M	-69.02M	-121.80M
Financing Cash Flow	76.12M	56.80M	43.58M	44.31M	-38.49M	77.41M

DXP Enterprises Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 117.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXPE, the sentiment is Positive. The current price of 117.97 is above the 20-day moving average (MA) of 110.31, above the 50-day MA of 104.38, and above the 200-day MA of 101.24, indicating a neutral trend. The MACD of 1.43 indicates Positive momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 50.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DXPE.

DXP Enterprises Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXPE	77 Outperform	$1.73B	20.87	19.58%	―	12.76%	36.11%
GIC	77 Outperform	$1.19B	17.56	22.61%	3.48%	0.16%	2.99%
AIT	74 Outperform	$9.98B	26.18	22.10%	0.70%	4.03%	5.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MSM	62 Neutral	$4.71B	23.07	14.84%	3.96%	-1.35%	-22.24%
DSGR	61 Neutral	$1.36B	-122.46	-1.68%	―	14.46%	-588.82%
EVI	54 Neutral	$375.89M	65.13	3.77%	―	12.63%	-21.23%

DXP Enterprises Corporate Events

DXP Enterprises Refinances Term Loan to Support Growth

On December 16, 2025, DXP Enterprises, Inc. amended its term loan facility, ultimately refinancing its existing Senior Secured Term Loan B borrowings and raising an incremental $205 million, bringing total Term Loan B debt to $848 million at a reduced margin of 3.25 percentage points over Term SOFR and extending maturity to October 13, 2030. Announced on December 22, 2025, the transaction leaves DXP with $285 million of cash on the balance sheet, is expected to generate interest cost savings, and provides enhanced liquidity and covenant headroom to support its accelerating acquisition strategy and broader growth plans, with management highlighting strong multi-year improvements in sales and EBITDA and a pro forma net debt-to-EBITDA ratio of 2.8x at the end of the third quarter.

The most recent analyst rating on (DXPE) stock is a Buy with a $111.00 price target. To see the full list of analyst forecasts on DXP Enterprises stock, see the DXPE Stock Forecast page.