DXP Enterprises (DXPE) AI Stock Analysis

• Market Cap: $1.66B
• Dividend Yield: N/A
• Average Volume (3M): 205.61K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.48
• Revenue Growth: 11.94%
• EPS Growth: 34.08%
• Country: US
• Employees: 3,028
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Distribution
• EPS (TTM): 1.26
• Shares Outstanding: 15,694,140
• 10 Day Avg. Volume: 308,676
• 30 Day Avg. Volume: 205,611
• PEG Ratio: 1.46
• Price to Book (P/B): 3.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.25
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 3.66
• Enterprise Value/Ebitda: 3.00
• 1Y Price Target: $95.00
• Price Target Upside: -10.17% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: $113.00 ▲(6.86%Upside)

DXP Enterprises scores well due to its strong financial performance and promising earnings call. Positive corporate events further support the stock's potential for growth. However, the technical analysis shows overbought conditions, which could lead to short-term volatility. Overall, the company is well-positioned for future growth, but investors should be aware of macroeconomic risks and cash flow challenges.

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 makes money through the distribution of a wide range of industrial products and the provision of related services. The company's revenue model is primarily based on the sale of products such as bearings, power transmission components, metalworking tools, industrial supplies, and safety equipment. DXP Enterprises also generates revenue by offering value-added services, including integrated supply chain management, inventory management, and maintenance solutions. Furthermore, the company benefits from strategic partnerships with key manufacturers and suppliers, enhancing its product offerings and market reach. The combination of product sales and service contracts allows DXP Enterprises to maintain a diversified revenue stream and cater to a broad customer base across various industries.

DXP Enterprises Financial Statement Overview

Summary

DXP Enterprises has demonstrated strong financial health with robust revenue growth and profitability, as seen in the 10.8% increase in revenue and a net profit margin of 4.3%. The balance sheet reveals moderate leverage with a debt-to-equity ratio of 1.55, and the cash flow statement indicates effective cash generation despite a decrease in free cash flow.

Income Statement

DXP Enterprises has shown strong revenue growth with a 10.8% increase from 2023 to the TTM period. The gross profit margin stands at an impressive 31.2%, indicating efficient cost management. Net profit margin also improved to 4.3%, reflecting enhanced profitability. The EBIT and EBITDA margins are healthy at 8.4% and 10.4% respectively, showcasing strong operational performance.

Balance Sheet

The company's debt-to-equity ratio is 1.55, indicating moderate leverage. The return on equity (ROE) is 17.9%, which is attractive and suggests effective use of equity capital. Equity ratio at 32.2% reflects a stable financial structure, although there is room for improvement in reducing debt levels.

Cash Flow

Operating cash flow to net income ratio is 0.98, showing effective cash generation relative to net income. However, free cash flow has decreased, with a free cash flow growth rate of -53.2% from 2023 to TTM. The free cash flow to net income ratio is 0.45, indicating some pressure on free cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.80B	1.68B	1.48B	1.11B	1.01B
Gross Profit	556.28M	505.29M	422.04M	328.51M	279.27M
EBITDA	182.30M	169.43M	123.54M	67.41M	-5.06M
Net Income	70.49M	68.81M	48.16M	16.50M	-29.07M
Balance Sheet
Total Assets	1.35B	1.18B	1.04B	906.19M	851.86M
Cash, Cash Equivalents and Short-Term Investments	148.32M	173.12M	46.03M	48.99M	117.35M
Total Debt	676.36M	575.97M	471.85M	376.82M	374.34M
Total Liabilities	926.71M	796.56M	671.89M	547.50M	504.00M
Stockholders Equity	422.79M	380.88M	365.39M	358.64M	347.07M
Cash Flow
Free Cash Flow	77.14M	93.96M	978.00K	31.09M	101.00M
Operating Cash Flow	102.21M	106.22M	5.89M	37.09M	107.67M
Investing Cash Flow	-181.69M	-22.65M	-53.42M	-69.02M	-121.80M
Financing Cash Flow	56.80M	43.58M	44.31M	-38.49M	77.41M

DXP Enterprises Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 105.75 is above the 20-day moving average (MA) of 94.25, above the 50-day MA of 87.66, and above the 200-day MA of 81.83, indicating a bullish trend. The MACD of 4.65 indicates Negative momentum. The RSI at 73.29 is Negative, neither overbought nor oversold. The STOCH value of 88.70 is Negative, 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	$1.66B	22.00	19.45%	―	11.94%	34.08%
GIC	75 Outperform	$1.07B	17.51	22.15%	3.67%	-0.79%	-13.64%
MSM	74 Outperform	$4.88B	24.71	14.34%	3.91%	-4.11%	-31.26%
AIT	73 Outperform	$10.21B	26.78	22.23%	0.62%	0.50%	4.48%
EVI	72 Outperform	$318.46M	50.78	4.71%	―	3.51%	33.35%
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%
DSGR	65 Neutral	$1.38B	1,840.37	0.18%	―	13.91%	―

DXP Enterprises Corporate Events

DXP Enterprises Expands Credit Facility by $50 Million

On July 1, 2025, DXP Enterprises, Inc. entered into an Increase Agreement to expand its asset-based revolving credit facility by $50 million, raising the total commitments from $135 million to $185 million. This strategic financial move aims to provide DXP with enhanced liquidity and flexibility, supporting its growth strategy through acquisitions and reinvestments in the business. The company has seen significant growth, with sales increasing from $1.0 billion in 2020 to $1.9 billion by March 2025, and plans to maintain this momentum by leveraging the increased borrowing capacity to drive further expansion.

The most recent analyst rating on (DXPE) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on DXP Enterprises stock, see the DXPE Stock Forecast page.