DXP Enterprises (DXPE)
NASDAQ:DXPE
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DXP Enterprises
(NASDAQ:DXPE)
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Rating:72Outperform
Price Target:
$167.00
▲(41.56% Upside)
Action:ReiteratedDate:05/08/26
The score is driven primarily by solid underlying financial performance (growth and improved balance sheet) and a constructive earnings call pointing to continued demand and margin leverage. Offsets include only moderate/soft near-term technical momentum and a relatively high P/E with no stated dividend support.
Positive Factors
Improved Leverage
A material reduction in leverage to a ~0.17 debt/equity ratio meaningfully improves financial flexibility. Lower structural leverage reduces interest burden, increases capacity for accretive M&A or capital returns, and strengthens resilience to cyclical industrial slowdowns over the coming months.
Negative Factors
Cash-flow Volatility
Irregular cash conversion and sensitivity to working capital reduce self-funding reliability. Volatile free cash flow limits flexibility for consistent deleveraging, capital returns, or funding of acquisition pipelines without tapping external financing, a structural constraint in slower demand periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Leverage
A material reduction in leverage to a ~0.17 debt/equity ratio meaningfully improves financial flexibility. Lower structural leverage reduces interest burden, increases capacity for accretive M&A or capital returns, and strengthens resilience to cyclical industrial slowdowns over the coming months.
Read all positive factors
DXP Enterprises (DXPE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.42B
Dividend YieldN/A
Average Volume (3M)162.81K
Price to Earnings (P/E)27.2
Beta (1Y)1.52
Revenue Growth10.48%
EPS Growth11.27%
CountryUS
Employees3,028
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)5.65
Shares Outstanding15,522,213
10 Day Avg. Volume178,310
30 Day Avg. Volume162,807
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 Cap0.95
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit3.61
Enterprise Value/Ebitda10.50
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)6.12
Revenue Forecast (FY)$2.22B
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
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.02B | 1.80B | 1.68B | 1.48B | 1.11B |
| Gross Profit | 635.93M | 556.28M | 505.29M | 422.04M | 328.51M |
| EBITDA | 218.60M | 182.30M | 170.18M | 123.54M | 67.41M |
| Net Income | 88.68M | 70.49M | 68.81M | 48.16M | 16.50M |
Balance Sheet | |||||
| Total Assets | 1.69B | 1.35B | 1.18B | 1.04B | 906.19M |
| Cash, Cash Equivalents and Short-Term Investments | 303.78M | 148.32M | 173.12M | 46.03M | 48.99M |
| Total Debt | 982.00M | 676.36M | 575.97M | 471.85M | 376.82M |
| Total Liabilities | 1.19B | 926.71M | 796.56M | 671.89M | 547.50M |
| Stockholders Equity | 498.44M | 422.79M | 380.88M | 365.39M | 358.64M |
Cash Flow | |||||
| Free Cash Flow | 53.98M | 77.14M | 93.96M | 978.00K | 31.09M |
| Operating Cash Flow | 94.26M | 102.21M | 106.22M | 5.89M | 37.09M |
| Investing Cash Flow | -99.25M | -181.69M | -22.65M | -53.42M | -69.02M |
| Financing Cash Flow | 158.87M | 56.80M | 43.58M | 44.31M | -38.49M |
DXP Enterprises Technical Analysis
Positive
117.97
Price Trends
143.45
Positive
127.87
Positive
120.07
Positive
Market Momentum
4.73
Negative
69.29
Neutral
71.60
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 117.97 is below the 20-day moving average (MA) of 144.74, below the 50-day MA of 143.45, and below the 200-day MA of 120.07, indicating a bullish trend. The MACD of 4.73 indicates Negative momentum. The RSI at 69.29 is Neutral, neither overbought nor oversold. The STOCH value of 71.60 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 39 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 | $11.42B | 24.95 | 21.64% | 0.70% | 7.54% | 6.04% | |
72 Outperform | $2.42B | 27.19 | 17.90% | ― | 10.48% | 11.27% | |
71 Outperform | $1.12B | 18.13 | 19.82% | 3.48% | 7.23% | 19.38% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $5.82B | 31.30 | 15.00% | 3.96% | 2.16% | -2.18% | |
57 Neutral | $257.89M | 33.19 | 3.77% | ― | 18.48% | -2.59% | |
53 Neutral | $1.27B | 793.22 | 0.84% | ― | 7.07% | 361.18% |
* Industrials Sector Average
DXPE
DXP Enterprises
156.18
71.47
84.37%
AIT
Applied Industrial Technologies
308.87
89.98
41.11%
EVI
EVI Industries
20.05
4.61
29.87%
DSGR
Distribution Solutions Group
27.40
1.04
3.97%
MSM
MSC Industrial
104.28
31.00
42.31%
GIC
Global Industrial Company
29.24
4.34
17.45%
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.