DXP Enterprises (DXPE)
NASDAQ:DXPE
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DXP Enterprises
(NASDAQ:DXPE)
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Rating:75Outperform
Price Target:
$167.00
▲(41.56% Upside)
Action:ReiteratedDate:02/27/26
The score is driven primarily by improved fundamentals (strong growth and a notably stronger 2025 balance sheet) and supportive technical momentum. This is partially offset by a higher valuation (P/E ~29) and cash-flow/working-capital sensitivity highlighted in both the financials and the latest earnings call.
Positive Factors
Sustained Revenue Growth
DXP has demonstrated durable top-line expansion, doubling revenue from ~$1.01B in 2020 to ~$2.02B in 2025 and sustaining a ~15% CAGR since 2022. That multi-year growth across end markets supports scale, cover for fixed costs, and a larger platform for cross-sell and margin improvements over the next 2–6 months and beyond.
Negative Factors
Cash‑flow & Working‑capital Sensitivity
DXP's cash conversion is inconsistent: free cash flow covered only ~57% of net income in 2025 and operating cash flow was volatile historically. Elevated working capital (up $70.7M YoY) and acquisition-driven inventory can pressure liquidity and make near-term cash generation sensitive to billing timing and end‑market cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
DXP has demonstrated durable top-line expansion, doubling revenue from ~$1.01B in 2020 to ~$2.02B in 2025 and sustaining a ~15% CAGR since 2022. That multi-year growth across end markets supports scale, cover for fixed costs, and a larger platform for cross-sell and margin improvements over the next 2–6 months and beyond.
Read all positive factors
DXP Enterprises (DXPE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.12B
Dividend YieldN/A
Average Volume (3M)128.07K
Price to Earnings (P/E)19.3
Beta (1Y)1.61
Revenue Growth12.76%
EPS Growth36.11%
CountryUS
Employees3,028
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)1.39
Shares Outstanding15,522,213
10 Day Avg. Volume160,779
30 Day Avg. Volume128,071
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)3.44
Price to Sales (P/S)0.85
P/FCF Ratio31.72
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue1.40
Enterprise Value/Gross Profit4.44
Enterprise Value/Ebitda12.90
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.71
Revenue Forecast (FY)$2.17B
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...
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...
DXP Enterprises Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a strongly positive operational and financial performance for fiscal 2025, highlighted by record sales, expanding gross margins, record adjusted EBITDA dollars and margin expansion, meaningful organic improvement in sales per business day, accretive acquisitions and a stronger liquidity position after refinancing. Headwinds were limited and largely tactical: modest softness in Supply Chain Services, a sequential pullback in energy backlog in Q4 (introducing short-term uncertainty), increased working capital and higher SG&A and CapEx related to growth initiatives and acquisitions. Management emphasized continued margin discipline, active M&A pipeline and confidence in 2026, suggesting the positives substantially outweigh the near-term challenges.Positive Updates
Record Revenue and Strong Top-Line Growth
Total sales grew 11.9% year-over-year to $2.0 billion for fiscal 2025, with Q4 sales of $527.4 million (also +11.9% YoY). Since 2022, sales have grown at a 15% compounded annual growth rate, marking a record year for the company.
Negative Updates
Supply Chain Services Sales Decline
Supply Chain Services experienced a modest decline of 1.4% year-over-year, driven by customer facility closures and reduced activity at certain energy-related sites, demonstrating short-term softness in that segment.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Total sales grew 11.9% year-over-year to $2.0 billion for fiscal 2025, with Q4 sales of $527.4 million (also +11.9% YoY). Since 2022, sales have grown at a 15% compounded annual growth rate, marking a record year for the company.
Read all positive updates
Company Guidance
DXP guided to maintain margin discipline while driving organic growth and M&A in FY‑26, targeting a minimum of 1–3 acquisitions by mid‑2026 funded by $457.3M of liquidity (cash $303.8M, $153.5M ABL availability) after refinancing Term Loan B (cost down 50 bps to SOFR+325 and $205M incremental capital); management expects continued margin expansion versus FY‑25’s results (FY‑25 sales $2.0B up 11.9%, gross margin 31.5% (+67bps), adjusted EBITDA $225.3M / 11.2%, operating income $176.9M / 8.8%, EPS $5.37, ROIC 39.2%), lower CapEx in the next 1–2 quarters and overall in 2026 (FY‑25 CapEx $40.3M), constructive demand across energy/water/industrial with close monitoring of energy backlog (energy backlog +36.9% YoY but down 9.3% Q4 vs Q3) and January daily sales patterns ($6.9M/day), an expected SCS recovery in 2026, and continued capital returns (FY‑25 buybacks $17M / 182,000 shares).DXP Enterprises Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.02B | 1.80B | 1.68B | 1.48B | 1.11B |
| Gross Profit | 635.93M | 556.28M | 505.29M | 422.04M | 328.51M |
| EBITDA | 218.60M | 182.30M | 170.18M | 123.54M | 67.41M |
| Net Income | 88.68M | 70.49M | 68.81M | 48.16M | 16.50M |
Balance Sheet | |||||
| Total Assets | 1.69B | 1.35B | 1.18B | 1.04B | 906.19M |
| Cash, Cash Equivalents and Short-Term Investments | 303.78M | 148.32M | 173.12M | 46.03M | 48.99M |
| Total Debt | 982.00M | 676.36M | 575.97M | 471.85M | 376.82M |
| Total Liabilities | 1.19B | 926.71M | 796.56M | 671.89M | 547.50M |
| Stockholders Equity | 498.44M | 422.79M | 380.88M | 365.39M | 358.64M |
Cash Flow | |||||
| Free Cash Flow | 53.98M | 77.14M | 93.96M | 978.00K | 31.09M |
| Operating Cash Flow | 94.26M | 102.21M | 106.22M | 5.89M | 37.09M |
| Investing Cash Flow | -99.25M | -181.69M | -22.65M | -53.42M | -69.02M |
| Financing Cash Flow | 158.87M | 56.80M | 43.58M | 44.31M | -38.49M |
DXP Enterprises Technical Analysis
Positive
117.97
Price Trends
138.16
Negative
121.00
Positive
115.49
Positive
Market Momentum
-0.69
Negative
49.66
Neutral
62.66
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 below the 20-day moving average (MA) of 136.20, below the 50-day MA of 138.16, and above the 200-day MA of 115.49, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 49.66 is Neutral, neither overbought nor oversold. The STOCH value of 62.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DXPE.
DXP Enterprises Risk Analysis
DXP Enterprises disclosed 39 risk factors in its most recent earnings report. DXP Enterprises reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DXP Enterprises Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.19B | 15.56 | 23.59% | 3.48% | 0.16% | 2.99% | |
75 Outperform | $2.12B | 19.31 | 18.67% | ― | 12.76% | 36.11% | |
72 Outperform | $9.72B | 25.36 | 21.74% | 0.70% | 4.03% | 5.93% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $5.04B | 23.96 | 14.89% | 3.96% | -1.35% | -22.24% | |
57 Neutral | $262.13M | 33.19 | 3.77% | ― | 12.63% | -21.23% | |
56 Neutral | $1.20B | 152.18 | -1.68% | ― | 14.46% | -588.82% |
* Industrials Sector Average
DXPE
DXP Enterprises
136.64
53.76
64.86%
AIT
Applied Industrial Technologies
260.67
36.79
16.43%
EVI
EVI Industries
20.38
3.42
20.14%
DSGR
Distribution Solutions Group
26.02
-1.89
-6.77%
MSM
MSC Industrial
90.30
15.79
21.19%
GIC
Global Industrial Company
31.09
9.36
43.06%
DXP Enterprises Corporate Events
Business Operations and StrategyPrivate Placements and Financing
DXP Enterprises Refinances Term Loan to Support Growth
Positive
Dec 22, 2025
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 red...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.