DXP ENTERPRISES INC (DXPE) Stock Fundamental Analysis
NASDAQ:DXPE - Nasdaq - US2333774071 - Common Stock - Currency: USD
Overall DXPE gets a fundamental rating of 6 out of 10. We evaluated DXPE against 50 industry peers in the Trading Companies & Distributors industry. DXPE scores excellent on profitability, but there are some minor concerns on its financial health. DXPE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DXPE was profitable.
In the past year DXPE had a positive cash flow from operations.
Of the past 5 years DXPE 4 years were profitable.
DXPE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DXPE has a better Return On Assets (5.22%) than 62.00% of its industry peers.
Looking at the Return On Equity, with a value of 16.65%, DXPE is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
DXPE's Return On Invested Capital of 10.78% is fine compared to the rest of the industry. DXPE outperforms 74.00% of its industry peers.
DXPE had an Average Return On Invested Capital over the past 3 years of 10.75%. This is in line with the industry average of 9.15%.
The last Return On Invested Capital (10.78%) for DXPE is above the 3 year average (10.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 16.65% | ||
| ROIC | 10.78% |
ROA(3y)5.23%
ROA(5y)2.83%
ROE(3y)15.95%
ROE(5y)8.89%
ROIC(3y)10.75%
ROIC(5y)8.08%
1.3 Margins
DXPE has a Profit Margin (3.91%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DXPE has grown nicely.
The Operating Margin of DXPE (8.16%) is comparable to the rest of the industry.
DXPE's Operating Margin has improved in the last couple of years.
DXPE has a Gross Margin (30.87%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DXPE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.16% | ||
| PM (TTM) | 3.91% | ||
| GM | 30.87% |
OM growth 3Y31.56%
OM growth 5Y8.89%
PM growth 3Y38.44%
PM growth 5Y6.01%
GM growth 3Y1.53%
GM growth 5Y2.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DXPE is destroying value.
Compared to 1 year ago, DXPE has less shares outstanding
Compared to 5 years ago, DXPE has less shares outstanding
Compared to 1 year ago, DXPE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.40 indicates that DXPE is not in any danger for bankruptcy at the moment.
DXPE has a better Altman-Z score (3.40) than 62.00% of its industry peers.
The Debt to FCF ratio of DXPE is 8.14, which is on the high side as it means it would take DXPE, 8.14 years of fcf income to pay off all of its debts.
DXPE has a Debt to FCF ratio of 8.14. This is comparable to the rest of the industry: DXPE outperforms 58.00% of its industry peers.
DXPE has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
DXPE has a Debt to Equity ratio of 1.47. This is in the lower half of the industry: DXPE underperforms 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 8.14 | ||
| Altman-Z | 3.4 |
ROIC/WACC1
WACC10.8%
2.3 Liquidity
A Current Ratio of 2.71 indicates that DXPE has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.71, DXPE is doing good in the industry, outperforming 68.00% of the companies in the same industry.
DXPE has a Quick Ratio of 2.29. This indicates that DXPE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.29, DXPE belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.74% over the past year.
Measured over the past years, DXPE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.63% on average per year.
Looking at the last year, DXPE shows a small growth in Revenue. The Revenue has grown by 7.36% in the last year.
DXPE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.34% yearly.
EPS 1Y (TTM)8.74%
EPS 3Y72.09%
EPS 5Y16.63%
EPS Q2Q%35.79%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y17.39%
Revenue growth 5Y7.34%
Sales Q2Q%15.69%
3.2 Future
Based on estimates for the next years, DXPE will show a very strong growth in Earnings Per Share. The EPS will grow by 20.58% on average per year.
Based on estimates for the next years, DXPE will show a small growth in Revenue. The Revenue will grow by 7.39% on average per year.
EPS Next Y27.32%
EPS Next 2Y20.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.3%
Revenue Next 2Y7.39%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.62, the valuation of DXPE can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DXPE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of DXPE to the average of the S&P500 Index (24.29), we can say DXPE is valued inline with the index average.
DXPE is valuated correctly with a Price/Forward Earnings ratio of 16.98.
DXPE's Price/Forward Earnings is on the same level as the industry average.
DXPE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 16.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DXPE is on the same level as its industry peers.
DXPE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DXPE is cheaper than 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.61 | ||
| EV/EBITDA | 10.62 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DXPE may justify a higher PE ratio.
DXPE's earnings are expected to grow with 20.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)1.3
EPS Next 2Y20.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DXPE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
91.45
+0.16 (+0.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners76.99%
Inst Owner Change-0.79%
Ins Owners18.76%
Ins Owner Change-0.27%
Market Cap1.44B
Analysts85.71
Price Target96.9 (5.96%)
Short Float %3.41%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)-0.35%
DP0.13%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.58%
Min EPS beat(2)31.06%
Max EPS beat(2)42.1%
EPS beat(4)3
Avg EPS beat(4)22.06%
Min EPS beat(4)-7.48%
Max EPS beat(4)42.1%
EPS beat(8)5
Avg EPS beat(8)108.22%
EPS beat(12)9
Avg EPS beat(12)165.86%
EPS beat(16)10
Avg EPS beat(16)120.2%
Revenue beat(2)2
Avg Revenue beat(2)3.97%
Min Revenue beat(2)3.28%
Max Revenue beat(2)4.66%
Revenue beat(4)3
Avg Revenue beat(4)1.7%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)4.66%
Revenue beat(8)4
Avg Revenue beat(8)0.01%
Revenue beat(12)8
Avg Revenue beat(12)2.97%
Revenue beat(16)10
Avg Revenue beat(16)2.4%
PT rev (1m)0%
PT rev (3m)26.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.96%
EPS NY rev (1m)0%
EPS NY rev (3m)22.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 16.98 | ||
| P/S | 0.8 | ||
| P/FCF | 18.61 | ||
| P/OCF | 14.05 | ||
| P/B | 3.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.62 |
EPS(TTM)4.23
EY4.63%
EPS(NY)5.39
Fwd EY5.89%
FCF(TTM)4.91
FCFY5.37%
OCF(TTM)6.51
OCFY7.12%
SpS114.78
BVpS26.93
TBVpS-7.34
PEG (NY)0.79
PEG (5Y)1.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 16.65% | ||
| ROCE | 13.3% | ||
| ROIC | 10.78% | ||
| ROICexc | 12.45% | ||
| ROICexgc | 28.42% | ||
| OM | 8.16% | ||
| PM (TTM) | 3.91% | ||
| GM | 30.87% | ||
| FCFM | 4.28% |
ROA(3y)5.23%
ROA(5y)2.83%
ROE(3y)15.95%
ROE(5y)8.89%
ROIC(3y)10.75%
ROIC(5y)8.08%
ROICexc(3y)12.37%
ROICexc(5y)9.26%
ROICexgc(3y)26.83%
ROICexgc(5y)20.35%
ROCE(3y)13.26%
ROCE(5y)9.97%
ROICexcg growth 3Y36.34%
ROICexcg growth 5Y12.66%
ROICexc growth 3Y36.72%
ROICexc growth 5Y6.29%
OM growth 3Y31.56%
OM growth 5Y8.89%
PM growth 3Y38.44%
PM growth 5Y6.01%
GM growth 3Y1.53%
GM growth 5Y2.22%
F-Score5
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 8.14 | ||
| Debt/EBITDA | 3.45 | ||
| Cap/Depr | 75.04% | ||
| Cap/Sales | 1.39% | ||
| Interest Coverage | 2.19 | ||
| Cash Conversion | 56.66% | ||
| Profit Quality | 109.58% | ||
| Current Ratio | 2.71 | ||
| Quick Ratio | 2.29 | ||
| Altman-Z | 3.4 |
F-Score5
WACC10.8%
ROIC/WACC1
Cap/Depr(3y)43.97%
Cap/Depr(5y)36.71%
Cap/Sales(3y)0.82%
Cap/Sales(5y)0.73%
Profit Quality(3y)82.79%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.74%
EPS 3Y72.09%
EPS 5Y16.63%
EPS Q2Q%35.79%
EPS Next Y27.32%
EPS Next 2Y20.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.36%
Revenue growth 3Y17.39%
Revenue growth 5Y7.34%
Sales Q2Q%15.69%
Revenue Next Year11.3%
Revenue Next 2Y7.39%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.45%
EBIT growth 3Y54.44%
EBIT growth 5Y16.87%
EBIT Next Year54.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-17.9%
FCF growth 3Y35.37%
FCF growth 5Y32.07%
OCF growth 1Y-3.78%
OCF growth 3Y40.19%
OCF growth 5Y19.87%