DXP Enterprises (DXPE) AI Stock Analysis

• Market Cap: $1.91B
• Dividend Yield: N/A
• Average Volume (3M): 183.91K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.47
• Revenue Growth: 13.93%
• EPS Growth: 48.25%
• Country: US
• Employees: 3,028
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Distribution
• EPS (TTM): 1.43
• Shares Outstanding: 15,694,084
• 10 Day Avg. Volume: 142,287
• 30 Day Avg. Volume: 183,914
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 3.36
• Enterprise Value/Ebitda: 9.93
• 1Y Price Target: $134.00
• Price Target Upside: 6.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: $134.00 ▲(6.50% Upside)

DXP Enterprises receives a strong overall score driven by robust financial performance and positive technical indicators. The company's strategic acquisitions and credit facility expansion further bolster its growth prospects. However, high leverage and moderate valuation slightly temper the outlook.

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 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 health with robust revenue growth and profitability. The company has a moderate leverage position with a stable equity base. However, there is room for improvement in cash flow management, particularly in free cash flow generation.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.92B	1.80B	1.68B	1.48B	1.11B	1.01B
Gross Profit	602.68M	556.28M	505.29M	422.04M	328.51M	277.20M
EBITDA	203.95M	182.30M	169.43M	123.54M	67.41M	-5.06M
Net Income	86.62M	70.49M	68.81M	48.16M	16.50M	-29.27M
Balance Sheet
Total Assets	1.41B	1.35B	1.18B	1.04B	906.19M	851.86M
Cash, Cash Equivalents and Short-Term Investments	112.93M	148.32M	173.12M	46.03M	48.99M	117.35M
Total Debt	689.31M	692.74M	575.97M	471.85M	376.82M	374.34M
Total Liabilities	944.30M	926.71M	796.56M	671.89M	547.50M	504.00M
Stockholders Equity	468.09M	422.79M	380.88M	365.39M	358.64M	347.07M
Cash Flow
Free Cash Flow	38.37M	77.14M	93.96M	978.00K	31.09M	101.00M
Operating Cash Flow	81.98M	102.21M	106.22M	5.89M	37.09M	107.67M
Investing Cash Flow	-92.36M	-181.69M	-22.65M	-53.42M	-69.02M	-121.80M
Financing Cash Flow	75.34M	56.80M	43.58M	44.31M	-38.49M	77.41M

DXP Enterprises Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 125.82
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 125.82 is above the 20-day moving average (MA) of 118.90, above the 50-day MA of 106.51, and above the 200-day MA of 90.49, indicating a bullish trend. The MACD of 4.68 indicates Positive momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 63.44 is Neutral, 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	80 Outperform	$1.91B	22.96	20.33%	―	13.93%	48.25%
AIT	79 Outperform	$9.93B	25.99	22.24%	0.65%	1.88%	2.91%
GIC	79 Outperform	$1.44B	21.90	22.72%	2.69%	-1.58%	-5.62%
MSM	75 Outperform	$4.97B	25.17	14.34%	3.77%	-4.11%	-31.26%
DSGR	71 Outperform	$1.47B	374.82	0.65%	―	13.48%	―
EVI	67 Neutral	$349.46M	55.69	4.71%	―	3.51%	33.35%
Sector *	64 Neutral	$10.73B	15.65	7.61%	2.01%	2.80%	-14.92%

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.