DXP Enterprises (DXPE)
NASDAQ:DXPE
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DXP Enterprises
(NASDAQ:DXPE)
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Rating:66Neutral
Price Target:
$169.00
▲(43.26% Upside)
Action:Downgraded
Date:05/10/26
DXPE scores well on operating execution and the latest earnings-call momentum (revenue growth, margin expansion, improving bookings/backlog), but the overall score is held back by leverage and cash-flow variability risk, a neutral-to-moderate technical setup, and a relatively high P/E with no dividend yield provided.
Positive Factors
Diversified MRO distribution & services
DXP's combined product distribution and engineered services model spreads revenue across MRO sales, aftermarket services and project work. That mix supports more stable revenue and higher-margin cross-sell opportunities over cycles, enhancing long-term resilience and customer stickiness.
Negative Factors
Elevated leverage relative to equity
Meaningful leverage increases earnings volatility and reduces financial flexibility in a cyclical distribution business. Higher interest costs and principal commitments can constrain reinvestment, magnify downturns, and make successful execution of M&A and capex plans more dependent on steady cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified MRO distribution & services
DXP's combined product distribution and engineered services model spreads revenue across MRO sales, aftermarket services and project work. That mix supports more stable revenue and higher-margin cross-sell opportunities over cycles, enhancing long-term resilience and customer stickiness.
Read all positive factors
DXP Enterprises (DXPE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.31B
Dividend YieldN/A
Average Volume (3M)209.10K
Price to Earnings (P/E)25.6
Beta (1Y)1.54
Revenue Growth10.48%
EPS Growth11.27%
CountryUS
Employees3,028
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)5.62
Shares Outstanding15,505,312
10 Day Avg. Volume151,633
30 Day Avg. Volume209,102
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 Cap1.30
Enterprise Value/Revenue1.45
Enterprise Value/Gross Profit4.58
Enterprise Value/Ebitda14.27
Forecast
1Y Price Target
$157.00Price Target Upside33.08% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)6.14
Revenue Forecast (FY)$2.19B
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 primarily makes money by selling industrial products and providing related services to industrial customers. Its core revenue stream is product sales (distribution) of MRO and industrial components—such as pumps, bearings, power transmission p...
DXP Enterprises Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial picture: solid revenue growth, notable margin expansion, strong adjusted EBITDA and free cash flow, substantial outperformance in the Innovative Pumping Solutions segment, and an active, accretive acquisition pipeline. Near-term headwinds included a soft January, elevated SG&A due to some discrete and acquisition-related costs, slightly lower GAAP EPS driven by interest and one-time items, and working capital impacts from recent acquisitions. Management characterized many negatives as timing-related or one-time and emphasized improving bookings, backlog, and monthly sales momentum into Q2, supporting confidence in the rest of the year.Positive Updates
Consolidated Revenue Growth
Total sales of $521.7 million in Q1, up 9.5% year over year; sales per business day increased to ~$8.3M from ~$7.6M (adjusted for acquisitions: $7.6M vs $7.1M).
Negative Updates
Slow Start in January
January was notably weak across end markets (water, oil & gas, general industry), creating a slow start to the year that management called unexplained but transitory.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Total sales of $521.7 million in Q1, up 9.5% year over year; sales per business day increased to ~$8.3M from ~$7.6M (adjusted for acquisitions: $7.6M vs $7.1M).
Read all positive updates
Company Guidance
Management did not give formal guidance but provided clear directional expectations: they see bookings trending higher, backlog “healthy to higher,” and are encouraged about Q2 and the year if monthly sales momentum (Jan $7.2M/day, Feb $8.4M/day, Mar $9.2M/day, Apr $9.0M/day, April +15% YoY) continues—Q1 results were sales $521.7M (+9.5% YoY; $8.3M sales/day vs $7.6M LY), gross margin 32.3% (+79 bps), adjusted EBITDA $57.8M (11.1% margin), operating income $42.5M, adjusted diluted EPS $1.26 (GAAP diluted EPS $1.22), operating cash flow ~$29.6M and free cash flow $26.3M, ROIC 34.1%, cash $213.4M, total debt $844.7M, fixed‑charge coverage 2.5x and secured leverage 2.6x; they expect SG&A one‑offs (healthcare, legal, audit) to normalize, see incremental margin leverage as sales grow, anticipate closing another one to two acquisitions before Q2 ends, and suggested corporate expense run‑rate could blend between roughly $20–$28M.DXP Enterprises Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.06B | 2.02B | 1.80B | 1.68B | 1.48B | 1.11B |
| Gross Profit | 654.27M | 635.93M | 556.28M | 505.29M | 422.04M | 328.51M |
| EBITDA | 210.11M | 218.60M | 182.30M | 170.18M | 123.54M | 67.41M |
| Net Income | 88.04M | 88.68M | 70.49M | 68.81M | 48.16M | 16.50M |
Balance Sheet | ||||||
| Total Assets | 1.72B | 1.69B | 1.35B | 1.18B | 1.04B | 906.19M |
| Cash, Cash Equivalents and Short-Term Investments | 213.38M | 303.78M | 148.32M | 173.12M | 46.03M | 48.99M |
| Total Debt | 902.01M | 982.00M | 676.36M | 575.97M | 471.85M | 376.82M |
| Total Liabilities | 1.21B | 1.19B | 926.71M | 796.56M | 671.89M | 547.50M |
| Stockholders Equity | 512.20M | 498.44M | 422.79M | 380.88M | 365.39M | 358.64M |
Cash Flow | ||||||
| Free Cash Flow | 97.07M | 53.98M | 77.14M | 93.96M | 978.00K | 31.09M |
| Operating Cash Flow | 120.73M | 94.26M | 102.21M | 106.22M | 5.89M | 37.09M |
| Investing Cash Flow | -175.17M | -99.25M | -181.69M | -22.65M | -53.42M | -69.02M |
| Financing Cash Flow | 152.96M | 158.87M | 56.80M | 43.58M | 44.31M | -38.49M |
DXP Enterprises Technical Analysis
Negative
117.97
Price Trends
151.56
Negative
143.20
Positive
127.89
Positive
Market Momentum
-2.79
Positive
44.22
Neutral
68.55
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 152.97, below the 50-day MA of 151.56, and below the 200-day MA of 127.89, indicating a neutral trend. The MACD of -2.79 indicates Positive momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 68.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DXPE.
DXP Enterprises Risk Analysis
DXP Enterprises disclosed 40 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $11.40B | 28.24 | 21.64% | 0.70% | 7.54% | 6.04% | |
66 Neutral | $2.31B | 25.59 | 17.90% | ― | 10.48% | 11.27% | |
65 Neutral | $1.16B | 15.46 | 23.95% | 3.48% | 7.23% | 19.38% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $6.13B | 29.51 | 15.00% | 3.96% | 2.16% | -2.18% | |
52 Neutral | $1.27B | 228.16 | 0.84% | ― | 7.07% | 361.18% | |
50 Neutral | $227.53M | 31.55 | 4.92% | ― | 17.47% | -7.38% |
* Industrials Sector Average
DXPE
DXP Enterprises
145.06
62.38
75.45%
AIT
Applied Industrial Technologies
303.81
78.86
35.06%
EVI
EVI Industries
17.46
-0.90
-4.91%
DSGR
Distribution Solutions Group
27.00
-0.25
-0.92%
MSM
MSC Industrial
109.47
31.39
40.21%
GIC
Global Industrial Company
30.40
5.26
20.93%
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.