DXP Enterprises (DXPE) AI Stock Analysis

• Market Cap: $1.48B
• Dividend Yield: N/A
• Average Volume (3M): 194.50K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.62
• Revenue Growth: 12.76%
• EPS Growth: 36.11%
• Country: US
• Employees: 3,028
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 1.34
• Shares Outstanding: 15,679,290
• 10 Day Avg. Volume: 280,324
• 30 Day Avg. Volume: 194,504
• 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: 1.71
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 4.10
• Enterprise Value/Ebitda: 12.05
• 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: 71 Outperform
• Price Target: $111.00 ▼(-5.91% Downside)

DXP Enterprises scores well due to strong financial performance and positive earnings call sentiment, driven by record sales and robust growth in key segments. However, technical analysis indicates bearish momentum, which tempers the overall score. The valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Acquisition Strategy

Strategic acquisitions enhance product offerings and market reach, strengthening competitive position in key industries.

Cash Flow Generation

Strong cash flow generation supports reinvestment in growth opportunities and financial stability, ensuring sustainable operations.

Negative Factors

Decline in Supply Chain Services

A decline in this segment could indicate challenges in maintaining competitive pricing and adapting to market conditions, impacting growth.

Higher SG&A Expenses

Increased expenses can pressure margins and reduce profitability, potentially affecting the company's ability to invest in growth.

Energy-Related Backlog Decline

A decline in backlog suggests potential future revenue challenges in the energy sector, impacting long-term sales stability.

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 shows strong financial performance with consistent revenue growth and improved profitability. The balance sheet reflects reduced leverage and enhanced equity returns, while cash flow metrics indicate solid cash generation. However, there are operational challenges as indicated by a slight decrease in EBIT margin.

Income Statement

DXP Enterprises has shown consistent revenue growth, with a TTM revenue growth rate of 2.13% and a strong historical trend. The gross profit margin has improved to 31.52% in TTM, indicating efficient cost management. The net profit margin has also increased to 4.45%, reflecting enhanced profitability. However, the EBIT margin has slightly decreased in TTM, suggesting some operational challenges.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.14 in TTM, indicating reduced leverage and a stronger equity position. Return on equity has increased to 19.11%, showcasing effective use of equity to generate profits. However, the equity ratio remains moderate, suggesting room for further strengthening of the balance sheet.

Cash Flow

DXP Enterprises has demonstrated positive free cash flow growth of 9.79% in TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.34, showing a reasonable conversion of income to cash. The free cash flow to net income ratio of 0.48 suggests a healthy cash flow relative to profits, although there is potential for further improvement.

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	210.05M	182.30M	170.18M	123.54M	67.41M	-3.18M
Net Income	87.19M	70.49M	68.81M	48.16M	16.50M	-29.27M
Balance Sheet
Total Assets	1.44B	1.35B	1.18B	1.04B	906.19M	868.13M
Cash, Cash Equivalents and Short-Term Investments	123.83M	148.32M	173.12M	46.03M	48.99M	119.33M
Total Debt	687.69M	676.36M	575.97M	471.85M	376.82M	374.34M
Total Liabilities	956.12M	926.71M	796.56M	671.89M	547.50M	507.00M
Stockholders Equity	488.34M	422.79M	380.88M	365.39M	358.64M	360.34M
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	76.12M	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: Negative
• MACD: Negative
• 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 above the 20-day moving average (MA) of 99.66, above the 50-day MA of 111.91, and above the 200-day MA of 98.75, indicating a bearish trend. The MACD of -7.28 indicates Negative momentum. The RSI at 41.60 is Neutral, neither overbought nor oversold. The STOCH value of 58.93 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	$9.71B	24.75	22.10%	0.72%	4.03%	5.93%
GIC	72 Outperform	$1.10B	16.26	22.61%	3.64%	0.16%	2.99%
DXPE	71 Outperform	$1.48B	17.86	19.58%	―	12.76%	36.11%
MSM	64 Neutral	$4.98B	25.05	14.34%	3.83%	-1.35%	-22.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EVI	54 Neutral	$354.66M	56.41	3.77%	―	12.63%	-21.23%
DSGR	51 Neutral	$1.30B	―	-1.68%	―	14.46%	-588.82%

DXP Enterprises Corporate Events

DXP Enterprises Reports Record Sales Amid Strong Q3 Performance

The recent earnings call for DXP Enterprises showcased a generally positive sentiment, emphasizing strong sales growth and consistent EBITDA margins. The company highlighted impressive performances in its Innovative Pumping Solutions and Service Centers segments. However, it also acknowledged challenges like a decline in Supply Chain Services and increased SG&A expenses. Despite these hurdles, the overall tone remained optimistic, buoyed by record sales and robust performance in key areas.

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.