DXP ENTERPRISES INC (DXPE) Stock Fundamental Analysis
NASDAQ:DXPE - US2333774071 - Common Stock
124.89 USD
+8.7 (+7.49%)
124.89 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to DXPE. DXPE was compared to 48 industry peers in the Trading Companies & Distributors industry. While DXPE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DXPE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DXPE had positive earnings in the past year.
DXPE had a positive operating cash flow in the past year.
Of the past 5 years DXPE 4 years were profitable.
In the past 5 years DXPE always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.13%, DXPE is doing good in the industry, outperforming 64.58% of the companies in the same industry.
The Return On Equity of DXPE (18.50%) is better than 72.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.97%, DXPE is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
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 9.70%.
The last Return On Invested Capital (11.97%) for DXPE is above the 3 year average (10.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 18.5% | ||
| ROIC | 11.97% |
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 (4.51%) which is comparable to the rest of the industry.
DXPE's Profit Margin has improved in the last couple of years.
DXPE has a Operating Margin of 8.98%. This is in the better half of the industry: DXPE outperforms 64.58% of its industry peers.
DXPE's Operating Margin has improved in the last couple of years.
DXPE's Gross Margin of 31.40% is in line compared to the rest of the industry. DXPE outperforms 56.25% of its industry peers.
DXPE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.98% | ||
| PM (TTM) | 4.51% | ||
| GM | 31.4% |
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 just above the Cost of Capital (WACC), so DXPE is still creating some value.
DXPE has less shares outstanding than it did 1 year ago.
DXPE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DXPE has a worse debt to assets ratio.
2.2 Solvency
DXPE has an Altman-Z score of 3.81. This indicates that DXPE is financially healthy and has little risk of bankruptcy at the moment.
DXPE has a better Altman-Z score (3.81) than 64.58% of its industry peers.
DXPE has a debt to FCF ratio of 16.28. This is a negative value and a sign of low solvency as DXPE would need 16.28 years to pay back of all of its debts.
DXPE's Debt to FCF ratio of 16.28 is in line compared to the rest of the industry. DXPE outperforms 54.17% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that DXPE has dependencies on debt financing.
DXPE has a worse Debt to Equity ratio (1.33) than 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 16.28 | ||
| Altman-Z | 3.81 |
ROIC/WACC1.14
WACC10.48%
2.3 Liquidity
DXPE has a Current Ratio of 2.79. This indicates that DXPE is financially healthy and has no problem in meeting its short term obligations.
DXPE has a better Current ratio (2.79) than 72.92% of its industry peers.
A Quick Ratio of 2.33 indicates that DXPE has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.33, DXPE belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 47.61% 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.
DXPE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.93%.
Measured over the past years, DXPE shows a small growth in Revenue. The Revenue has been growing by 7.34% on average per year.
EPS 1Y (TTM)47.61%
EPS 3Y72.09%
EPS 5Y16.63%
EPS Q2Q%43%
Revenue 1Y (TTM)13.93%
Revenue growth 3Y17.39%
Revenue growth 5Y7.34%
Sales Q2Q%11.92%
3.2 Future
Based on estimates for the next years, DXPE will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.01% on average per year.
The Revenue is expected to grow by 6.63% on average over the next years.
EPS Next Y32.38%
EPS Next 2Y23.45%
EPS Next 3Y19.01%
EPS Next 5YN/A
Revenue Next Year10.64%
Revenue Next 2Y7.59%
Revenue Next 3Y6.63%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 23.83, DXPE is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as DXPE.
DXPE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.24.
DXPE is valuated rather expensively with a Price/Forward Earnings ratio of 19.37.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DXPE is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of DXPE to the average of the S&P500 Index (22.81), we can say DXPE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.83 | ||
| Fwd PE | 19.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DXPE indicates a somewhat cheap valuation: DXPE is cheaper than 60.42% of the companies listed in the same industry.
DXPE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.9 | ||
| EV/EBITDA | 11.85 |
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.
A more expensive valuation may be justified as DXPE's earnings are expected to grow with 19.01% in the coming years.
PEG (NY)0.74
PEG (5Y)1.43
EPS Next 2Y23.45%
EPS Next 3Y19.01%
5. Dividend
5.1 Amount
No dividends for DXPE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
124.89
+8.7 (+7.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners72.51%
Inst Owner Change0.4%
Ins Owners18.36%
Ins Owner Change-1.74%
Market Cap1.96B
Analysts85.71
Price Target127.5 (2.09%)
Short Float %3.45%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)-0.35%
DP0.1%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.92%
Min EPS beat(2)0.86%
Max EPS beat(2)2.98%
EPS beat(4)4
Avg EPS beat(4)19.25%
Min EPS beat(4)0.86%
Max EPS beat(4)42.1%
EPS beat(8)6
Avg EPS beat(8)101%
EPS beat(12)9
Avg EPS beat(12)85.32%
EPS beat(16)11
Avg EPS beat(16)119.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-2.05%
Max Revenue beat(2)-2.02%
Revenue beat(4)2
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-2.05%
Max Revenue beat(4)4.66%
Revenue beat(8)3
Avg Revenue beat(8)-0.63%
Revenue beat(12)6
Avg Revenue beat(12)1.5%
Revenue beat(16)9
Avg Revenue beat(16)1.77%
PT rev (1m)31.58%
PT rev (3m)31.58%
EPS NQ rev (1m)4.38%
EPS NQ rev (3m)20.17%
EPS NY rev (1m)3.98%
EPS NY rev (3m)3.58%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)5.5%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.83 | ||
| Fwd PE | 19.37 | ||
| P/S | 1.02 | ||
| P/FCF | 50.9 | ||
| P/OCF | 23.87 | ||
| P/B | 4.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.85 |
EPS(TTM)5.24
EY4.2%
EPS(NY)6.45
Fwd EY5.16%
FCF(TTM)2.45
FCFY1.96%
OCF(TTM)5.23
OCFY4.19%
SpS122.31
BVpS29.83
TBVpS-4.57
PEG (NY)0.74
PEG (5Y)1.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 18.5% | ||
| ROCE | 14.77% | ||
| ROIC | 11.97% | ||
| ROICexc | 13.25% | ||
| ROICexgc | 27.16% | ||
| OM | 8.98% | ||
| PM (TTM) | 4.51% | ||
| GM | 31.4% | ||
| FCFM | 2.01% |
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-Score6
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 16.28 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 119.92% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 2.67 | ||
| Cash Conversion | 39.35% | ||
| Profit Quality | 44.47% | ||
| Current Ratio | 2.79 | ||
| Quick Ratio | 2.33 | ||
| Altman-Z | 3.81 |
F-Score6
WACC10.48%
ROIC/WACC1.14
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)47.61%
EPS 3Y72.09%
EPS 5Y16.63%
EPS Q2Q%43%
EPS Next Y32.38%
EPS Next 2Y23.45%
EPS Next 3Y19.01%
EPS Next 5YN/A
Revenue 1Y (TTM)13.93%
Revenue growth 3Y17.39%
Revenue growth 5Y7.34%
Sales Q2Q%11.92%
Revenue Next Year10.64%
Revenue Next 2Y7.59%
Revenue Next 3Y6.63%
Revenue Next 5YN/A
EBIT growth 1Y29.97%
EBIT growth 3Y54.44%
EBIT growth 5Y16.87%
EBIT Next Year51.41%
EBIT Next 3Y21.55%
EBIT Next 5YN/A
FCF growth 1Y148.37%
FCF growth 3Y35.37%
FCF growth 5Y32.07%
OCF growth 1Y239.28%
OCF growth 3Y40.19%
OCF growth 5Y19.87%