DXP Enterprises (DXPE) AI Stock Analysis

• Market Cap: $1.91B
• Dividend Yield: N/A
• Average Volume (3M): 152.44K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.50
• Revenue Growth: 13.93%
• EPS Growth: 48.25%
• Country: US
• Employees: 3,028
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 1.34
• Shares Outstanding: 15,694,084
• 10 Day Avg. Volume: 104,037
• 30 Day Avg. Volume: 152,443
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $141.00
• Price Target Upside: 19.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $110.00 ▼(-6.76% Downside)

DXP Enterprises shows strong financial performance and a positive earnings outlook, driven by revenue growth and strategic acquisitions. However, technical indicators suggest a bearish trend, and high leverage poses a risk. The stock is fairly valued, with potential for growth if debt is managed effectively.

DXP Enterprises Business Overview & Revenue Model

Company Description

DXP Enterprises, Inc. (DXPE) is a leading provider of maintenance, repair, and operations (MRO) products and services, primarily serving the industrial sector. The company operates through multiple segments, including Service Centers, Supply Chain Services, and Innovative Pumping Solutions, offering a wide range of products such as pumps, valves, and safety supplies, along with tailored service solutions to enhance operational efficiency for its clients.

How the Company Makes Money

DXP Enterprises generates revenue through several key streams, primarily by selling MRO products and providing related services. The company operates a network of service centers where it sells equipment and supplies directly to industrial customers. Additionally, DXP's supply chain services focus on managing inventory and logistics for clients, creating a recurring revenue model through long-term contracts and partnerships. The Innovative Pumping Solutions segment contributes by offering specialized pump systems and services, enhancing customer relationships and driving sales. Strategic partnerships with manufacturers and suppliers also play a crucial role in expanding DXP's product offerings and market reach, ultimately contributing to its overall financial performance.

DXP Enterprises Financial Statement Overview

Summary

DXP Enterprises demonstrates strong financial performance with consistent revenue and profit growth. The income statement reflects efficient operations and profitability, while the balance sheet highlights a high leverage position that could pose risks. The cash flow statement shows stable cash generation with positive free cash flow growth. Overall, the company is on a positive growth trajectory, but careful management of debt levels is crucial.

Income Statement

DXP Enterprises shows strong revenue growth with a consistent increase in gross and net profit margins over the years. The TTM data reflects a healthy gross profit margin of 31.4% and a net profit margin of 4.5%, indicating efficient cost management. The EBIT and EBITDA margins have also improved, demonstrating enhanced operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 1.47 in the TTM, suggesting significant leverage. However, the return on equity has improved to 19.9%, showcasing effective utilization of equity to generate profits. The equity ratio remains stable, reflecting a balanced asset structure. While the company is leveraging debt for growth, the high debt levels pose a potential risk.

Cash Flow

The cash flow statement reveals a positive trend in free cash flow growth, with a 6.6% increase in the TTM. The operating cash flow to net income ratio is 0.33, indicating moderate cash generation from operations. The free cash flow to net income ratio of 0.47 suggests a reasonable conversion of earnings into cash. Overall, the cash flow position is stable, with improvements in free cash flow growth.

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	181.48M	182.30M	169.43M	123.54M	67.41M	-5.06M
Net Income	87.13M	70.49M	68.81M	48.16M	16.50M	-29.27M
Balance Sheet
Total Assets	1.44B	1.35B	1.18B	1.04B	906.19M	851.86M
Cash, Cash Equivalents and Short-Term Investments	123.83M	148.32M	173.12M	46.03M	48.99M	117.35M
Total Debt	68.29M	692.74M	575.97M	471.85M	376.82M	374.34M
Total Liabilities	693.83M	926.71M	796.56M	671.89M	547.50M	504.00M
Stockholders Equity	488.34M	422.79M	380.88M	365.39M	358.64M	347.07M
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	75.99M	56.80M	43.58M	44.31M	-38.49M	77.41M

DXP Enterprises Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 117.97
• 50DMA: Negative
• 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 Negative. The current price of 117.97 is below the 20-day moving average (MA) of 118.44, below the 50-day MA of 119.84, and above the 200-day MA of 99.45, indicating a neutral trend. The MACD of -1.11 indicates Positive momentum. The RSI at 30.17 is Neutral, neither overbought nor oversold. The STOCH value of 49.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DXPE.

DXP Enterprises Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIT	74 Outperform	$9.67B	24.67	22.10%	0.68%	4.03%	5.93%
GIC	72 Outperform	$1.08B	15.94	22.61%	2.93%	0.16%	2.99%
DXPE	70 Outperform	$1.91B	19.17	20.33%	―	13.93%	48.25%
MSM	64 Neutral	$4.84B	24.31	14.34%	3.97%	-1.35%	-22.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EVI	56 Neutral	$354.66M	56.41	4.59%	―	10.26%	29.40%
DSGR	51 Neutral	$1.24B	―	-1.68%	―	14.46%	-588.82%

DXP Enterprises Corporate Events

DXP Enterprises Reports Strong Q3 2025 Results

DXP Enterprises, Inc. is a prominent distributor of industrial products and services, focusing on innovative pumping solutions, supply chain services, and maintenance, repair, and operating production services across North America and Dubai. The company leverages its extensive product knowledge and technical expertise to provide cost-saving solutions to its industrial clientele.

DXP Enterprises Reports Strong Q2 2025 Growth

DXP Enterprises, Inc. is a prominent distributor providing industrial products and services, specializing in innovative pumping solutions, supply chain services, and maintenance, repair, and operating services across North America and Dubai.

DXP Enterprises Reports Strong Q2 Growth and Record Margins

The recent earnings call for DXP Enterprises showcased a generally positive sentiment, highlighting strong sales growth and record EBITDA margins. The company also celebrated successful acquisitions, which contributed to its positive momentum. However, there were some challenges, including a write-off in new product developments and flat performance in the Supply Chain Services segment, which were noted during the call.