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DXP Enterprises
(NASDAQ:DXPE)
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Rating:76Outperform
Price Target:
$224.00
▲(32.59% Upside)
Action:Reiterated
Date:08/07/26
DXPE scores well primarily on strong technical momentum and an upbeat earnings update showing robust growth, record profitability, and improved free cash flow. Financial performance is solid but tempered by leverage-related uncertainty, while valuation is a notable constraint due to the elevated P/E and lack of dividend yield support.
Positive Factors
Segment Diversification and Growth
DXP operates three complementary segments (Service Centers, IPS, Supply Chain Services). Strong IPS and Water platform growth demonstrates higher‑margin engineered and aftermarket businesses expanding the addressable market and reducing single‑market dependence, supporting durable revenue mix improvement.
Negative Factors
Elevated Historical Leverage
Despite recent de‑leveraging signals, historically high leverage and $842.5M total debt increase sensitivity to interest rates and add fixed charge burdens. Persistent elevated leverage could constrain strategic flexibility, increase financing costs, and limit ability to invest during downturns if not sustainably reduced.
Read all positive and negative factors
Positive Factors
Negative Factors
Segment Diversification and Growth
DXP operates three complementary segments (Service Centers, IPS, Supply Chain Services). Strong IPS and Water platform growth demonstrates higher‑margin engineered and aftermarket businesses expanding the addressable market and reducing single‑market dependence, supporting durable revenue mix improvement.
Read all positive factors
DXP Enterprises (DXPE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.43B
Dividend YieldN/A
Average Volume (3M)155.35K
Price to Earnings (P/E)27.9
Beta (1Y)1.55
Revenue Growth10.48%
EPS Growth11.27%
CountryUS
Employees3,286
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)5.97
Shares Outstanding15,505,312
10 Day Avg. Volume103,586
30 Day Avg. Volume155,351
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$188.50Price Target Upside11.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)6.14
Revenue Forecast (FY)$2.18B
DXP Enterprises Business Overview & Revenue Model
Company Description
DXP Enterprises, Inc., operating through its subsidiaries, specializes in providing essential maintenance, repair, and operational (MRO) products, machinery, and related services. Its primary customer base comprises energy and industrial companies...
How the Company Makes Money
DXP makes money primarily by selling industrial MRO products, equipment, and related services to industrial customers through multiple operating segments. (1) Service Centers: This segment generates revenue from the distribution of industrial prod...
DXP Enterprises Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed a clearly positive operational and financial quarter: strong top-line growth (15.6% YoY), robust organic growth (11.1% YoY), large outperformance in the IPS and Water platforms, margin expansion to a record 12.2% adjusted EBITDA, and a meaningful free cash flow turnaround. The company also demonstrated balance sheet flexibility and successful acquisition execution supported by an S&P upgrade. Challenges noted include flat performance in Supply Chain Services, higher SG&A and interest/tax headwinds, elevated total debt and some project timing/backlog variability, along with macroeconomic uncertainty. Overall, the positives materially outweigh the negatives.Positive Updates
Strong Revenue Growth
Total sales of $576.5 million in Q2 2026, up 15.6% year-over-year.
Negative Updates
Supply Chain Services Growth Weakness
Supply Chain Services sales of $65.8 million were essentially flat, up only 0.6% year-over-year, with growth partially offset by lower activity with certain existing customers.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Total sales of $576.5 million in Q2 2026, up 15.6% year-over-year.
Read all positive updates
Company Guidance
Management gave no formal numeric guidance but signaled a positive outlook supported by many Q2/H1 metrics: Q2 sales of $576.5M (+15.6% y/y; organic +11.1%), adjusted EBITDA $70.4M (12.2% margin, a company high), gross margin 31.8%, net income $28.7M and EPS $1.76; segment detail included IPS up 52.6% to $142.7M (IPS backlog improving — energy backlog +7.3% sequentially and backlog ex‑large projects +10% q/q), DXP Water $97.3M in Q2 and $175.5M YTD (+85.6%), Service Centers $367.9M (+8.3%) and SCS $65.8M (+0.6%); operational cash metrics showed Q2 free cash flow $29.8M, H1 FCF $56M and LTM FCF $118.7M, cash $226.6M, ABL availability $147.9M (total liquidity $374.5M, since increased to $225M ABL), total debt $842.5M, secured leverage 2.3x and fixed‑charge coverage 2.97x; capex was $2.6M in Q2, average daily sales were $9.15M in Q2 (Jan–Jun: $7.2M, $8.4M, $9.2M, $9.1M, $9.0M, $9.4M), and management completed 4 H1 acquisitions for $135.6M (Q2 acquisition sales $49.8M) plus Mequipco post‑quarter and earned an S&P upgrade to B+. Their qualitative guidance: priorities remain driving organic growth, expanding margins (with an aim to sustain ~12% adjusted EBITDA), growing the water and wastewater platform, executing disciplined acquisitions and continuing strong free cash flow, but no explicit forward numeric guidance was provided.DXP Enterprises Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.14B | 2.02B | 1.80B | 1.68B | 1.48B | 1.11B |
| Gross Profit | 679.52M | 635.93M | 556.28M | 505.29M | 422.04M | 328.51M |
| EBITDA | 223.48M | 218.60M | 182.30M | 170.18M | 123.54M | 67.41M |
| Net Income | 93.14M | 88.68M | 70.49M | 68.81M | 48.16M | 16.50M |
Balance Sheet | ||||||
| Total Assets | 1.77B | 1.69B | 1.35B | 1.18B | 1.04B | 906.19M |
| Cash, Cash Equivalents and Short-Term Investments | 226.62M | 303.78M | 148.32M | 173.12M | 46.03M | 48.99M |
| Total Debt | 899.00M | 982.00M | 676.36M | 575.97M | 471.85M | 376.82M |
| Total Liabilities | 1.23B | 1.19B | 926.71M | 796.56M | 671.89M | 547.50M |
| Stockholders Equity | 540.74M | 498.44M | 422.79M | 380.88M | 365.39M | 358.64M |
Cash Flow | ||||||
| Free Cash Flow | 144.81M | 53.98M | 77.14M | 93.96M | 978.00K | 31.09M |
| Operating Cash Flow | 164.04M | 94.26M | 102.21M | 106.22M | 5.89M | 37.09M |
| Investing Cash Flow | -282.12M | -99.25M | -181.69M | -22.65M | -53.42M | -69.02M |
| Financing Cash Flow | 143.50M | 158.87M | 56.80M | 43.58M | 44.31M | -38.49M |
DXP Enterprises Technical Analysis
Positive
168.94
Price Trends
164.24
Positive
157.61
Positive
138.64
Positive
Market Momentum
4.57
Negative
65.03
Neutral
78.41
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 168.94 is above the 20-day moving average (MA) of 168.08, above the 50-day MA of 164.24, and above the 200-day MA of 138.64, indicating a bullish trend. The MACD of 4.57 indicates Negative momentum. The RSI at 65.03 is Neutral, neither overbought nor oversold. The STOCH value of 78.41 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 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 | $12.76B | 32.17 | 21.64% | 0.56% | 7.54% | 6.04% | |
76 Outperform | $2.43B | 27.94 | 18.27% | ― | 10.48% | 11.27% | |
75 Outperform | $1.37B | 18.52 | 26.97% | 3.08% | 7.23% | 19.38% | |
72 Outperform | $6.89B | 29.81 | 16.55% | 2.77% | 4.41% | 16.62% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $1.60B | 292.22 | 0.84% | ― | 7.07% | 361.18% | |
54 Neutral | $181.07M | 30.00 | 4.92% | ― | 17.47% | -7.38% |
* Industrials Sector Average
DXPE
DXP Enterprises
192.36
76.93
66.64%
AIT
Applied Industrial Technologies
359.90
99.21
38.06%
EVI
EVI Industries
13.99
-8.41
-37.55%
DSGR
Distribution Solutions Group
34.88
4.11
13.36%
MSM
MSC Industrial
122.92
41.11
50.25%
GIC
Global Industrial Company
39.13
5.90
17.74%
DXP Enterprises Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
DXP Enterprises Expands Revolving Credit Facility for Growth
Positive
Jul 10, 2026
On July 2, 2026, DXP Enterprises, Inc. entered into a Second Amended and Restated Loan and Security Agreement that expands and extends its asset-based revolving credit facility. The commitments under the facility increased from $185 million to $22...
Executive/Board ChangesShareholder Meetings
DXP Enterprises Shareholders Back Board, Pay and Auditor
Positive
Jun 18, 2026
At its 2026 Annual Shareholders Meeting held on June 12, 2026, DXP Enterprises reported robust shareholder participation, with over 92 percent of eligible common shares and all eligible preferred shares represented in person or by proxy. Sharehold...
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.