DXP ENTERPRISES INC (DXPE)
US2333774071 - Common Stock
Overall DXPE gets a fundamental rating of 5 out of 10. We evaluated DXPE against 51 industry peers in the Trading Companies & Distributors industry. Both the profitability and the financial health of DXPE get a neutral evaluation. Nothing too spectacular is happening here. DXPE has a decent growth rate and is not valued too expensively.
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
DXPE has a Return On Assets (5.84%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 18.06%, DXPE is in line with its industry, outperforming 50.98% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.12%, DXPE is doing good in the industry, outperforming 70.59% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DXPE is below the industry average of 11.53%.
The 3 year average ROIC (8.13%) for DXPE is below the current ROIC(11.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.84% | ||
| ROE | 18.06% | ||
| ROIC | 11.12% |
ROA(3y)4.1%
ROA(5y)2.72%
ROE(3y)11.98%
ROE(5y)7.64%
ROIC(3y)8.13%
ROIC(5y)7.14%
1.3 Margins
DXPE has a Profit Margin (4.10%) which is in line with its industry peers.
In the last couple of years the Profit Margin of DXPE has grown nicely.
DXPE has a Operating Margin of 8.30%. This is comparable to the rest of the industry: DXPE outperforms 50.98% of its industry peers.
In the last couple of years the Operating Margin of DXPE has grown nicely.
DXPE has a Gross Margin of 30.11%. This is comparable to the rest of the industry: DXPE outperforms 49.02% of its industry peers.
DXPE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.3% | ||
| PM (TTM) | 4.1% | ||
| GM | 30.11% |
OM growth 3Y37.35%
OM growth 5Y7.01%
PM growth 3YN/A
PM growth 5Y5.43%
GM growth 3Y2.97%
GM growth 5Y1.78%
2. Health
2.1 Basic Checks
DXPE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DXPE has been reduced compared to 1 year ago.
Compared to 5 years ago, DXPE has less shares outstanding
The debt/assets ratio for DXPE is higher compared to a year ago.
2.2 Solvency
DXPE has an Altman-Z score of 3.27. This indicates that DXPE is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.27, DXPE is doing good in the industry, outperforming 60.78% of the companies in the same industry.
DXPE has a debt to FCF ratio of 5.60. This is a neutral value as DXPE would need 5.60 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.60, DXPE is in line with its industry, outperforming 58.82% of the companies in the same industry.
DXPE has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
DXPE's Debt to Equity ratio of 1.37 is on the low side compared to the rest of the industry. DXPE is outperformed by 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 3.27 |
ROIC/WACC1.12
WACC9.97%
2.3 Liquidity
DXPE has a Current Ratio of 2.89. This indicates that DXPE is financially healthy and has no problem in meeting its short term obligations.
DXPE's Current ratio of 2.89 is fine compared to the rest of the industry. DXPE outperforms 70.59% of its industry peers.
A Quick Ratio of 2.43 indicates that DXPE has no problem at all paying its short term obligations.
The Quick ratio of DXPE (2.43) is better than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.43 |
3. Growth
3.1 Past
DXPE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.15%, which is quite impressive.
DXPE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.05% yearly.
DXPE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.35%.
The Revenue has been growing slightly by 6.61% on average over the past years.
EPS 1Y (TTM)53.15%
EPS 3Y70.85%
EPS 5Y15.05%
EPS growth Q2Q156.76%
Revenue 1Y (TTM)13.35%
Revenue growth 3Y18.64%
Revenue growth 5Y6.61%
Revenue growth Q2Q0.18%
3.2 Future
The Earnings Per Share is expected to grow by 2.16% on average over the next years.
DXPE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.86% yearly.
EPS Next Y-6.39%
EPS Next 2Y2.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.34%
Revenue Next 2Y5.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 14.12, the valuation of DXPE can be described as correct.
DXPE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.11, DXPE is valued a bit cheaper.
DXPE is valuated correctly with a Price/Forward Earnings ratio of 15.08.
DXPE's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.39. DXPE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 15.08 |
4.2 Price Multiples
74.51% of the companies in the same industry are more expensive than DXPE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DXPE indicates a rather cheap valuation: DXPE is cheaper than 86.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.31 | ||
| EV/EBITDA | 7.12 |
4.3 Compensation for Growth
DXPE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y2.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DXPE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DXP ENTERPRISES INC
NASDAQ:DXPE (5/8/2024, 12:21:04 PM)
54.91
+1.37 (+2.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap874.72M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 15.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.84% | ||
| ROE | 18.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.3% | ||
| PM (TTM) | 4.1% | ||
| GM | 30.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.89 | ||
| Quick Ratio | 2.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)53.15%
EPS 3Y70.85%
EPS 5Y
EPS growth Q2Q
EPS Next Y-6.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.35%
Revenue growth 3Y18.64%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y