DXP ENTERPRISES INC (DXPE) Stock Fundamental Analysis
USA - NASDAQ:DXPE - US2333774071 - Common Stock
90.71 USD
+3.03 (+3.46%)
90.31 USD
-0.4 (-0.44%)
Overall DXPE gets a fundamental rating of 6 out of 10. We evaluated DXPE against 51 industry peers in the Trading Companies & Distributors industry. DXPE scores excellent on profitability, but 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
In the past year DXPE was profitable.
DXPE had a positive operating cash flow in the past year.
DXPE had positive earnings in 4 of the past 5 years.
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 68.63% of the companies in the same industry.
DXPE has a Return On Equity of 18.50%. This is in the better half of the industry: DXPE outperforms 74.51% of its industry peers.
DXPE has a Return On Invested Capital of 11.97%. This is amongst the best in the industry. DXPE outperforms 80.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DXPE is in line with the industry average of 10.12%.
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
With a Profit Margin value of 4.51%, DXPE perfoms like the industry average, outperforming 56.86% of the companies in the same industry.
In the last couple of years the Profit Margin of DXPE has grown nicely.
The Operating Margin of DXPE (8.98%) is better than 64.71% of its industry peers.
In the last couple of years the Operating Margin of DXPE has grown nicely.
With a Gross Margin value of 31.40%, DXPE perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
In the last couple of years the Gross Margin of DXPE has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DXPE is creating some value.
The number of shares outstanding for DXPE has been reduced compared to 1 year ago.
The number of shares outstanding for DXPE has been reduced compared to 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 3.44. This indicates that DXPE is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.44, DXPE is doing good in the industry, outperforming 72.55% of the companies in the same industry.
The Debt to FCF ratio of DXPE is 16.28, which is on the high side as it means it would take DXPE, 16.28 years of fcf income to pay off all of its debts.
DXPE has a Debt to FCF ratio (16.28) which is in line with 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's Debt to Equity ratio of 1.33 is on the low side compared to the rest of the industry. DXPE is outperformed by 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 16.28 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.14
WACC10.54%
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 74.51% of its industry peers.
DXPE has a Quick Ratio of 2.33. This indicates that DXPE is financially healthy and has no problem in meeting its short term obligations.
DXPE has a better Quick ratio (2.33) than 84.31% of its industry peers.
| 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 35.73% 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.
The Revenue has been growing slightly by 7.35% in the past year.
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)35.73%
EPS 3Y72.09%
EPS 5Y16.63%
EPS Q2Q%3.15%
Revenue 1Y (TTM)7.35%
Revenue growth 3Y17.39%
Revenue growth 5Y7.34%
Sales Q2Q%8.62%
3.2 Future
The Earnings Per Share is expected to grow by 21.68% on average over the next years. This is a very strong growth
DXPE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.74% yearly.
EPS Next Y32.14%
EPS Next 2Y23.51%
EPS Next 3Y19.1%
EPS Next 5Y21.68%
Revenue Next Year10.25%
Revenue Next 2Y8.44%
Revenue Next 3Y7.78%
Revenue Next 5Y7.74%
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 accelerating.
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 17.18, DXPE is valued on the expensive side.
Based on the Price/Earnings ratio, DXPE is valued a bit cheaper than 70.59% of the companies in the same industry.
DXPE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.89.
The Price/Forward Earnings ratio is 14.06, which indicates a correct valuation of DXPE.
72.55% of the companies in the same industry are more expensive than DXPE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DXPE to the average of the S&P500 Index (34.59), we can say DXPE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.18 | ||
| Fwd PE | 14.06 |
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 70.59% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DXPE is valued a bit cheaper than 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.97 | ||
| EV/EBITDA | 9.06 |
4.3 Compensation for Growth
DXPE's 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 19.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)1.03
EPS Next 2Y23.51%
EPS Next 3Y19.1%
5. Dividend
5.1 Amount
DXPE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
90.71
+3.03 (+3.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners73.47%
Inst Owner Change-0.74%
Ins Owners18.24%
Ins Owner Change-2.15%
Market Cap1.42B
Revenue(TTM)1.80B
Net Income(TTM)86.58M
Analysts84.44
Price Target140.76 (55.18%)
Short Float %3.36%
Short Ratio2.76
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)10.4%
PT rev (3m)45.26%
EPS NQ rev (1m)0.7%
EPS NQ rev (3m)5.11%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)3.79%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.18 | ||
| Fwd PE | 14.06 | ||
| P/S | 0.74 | ||
| P/FCF | 36.97 | ||
| P/OCF | 17.33 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.06 |
EPS(TTM)5.28
EY5.82%
EPS(NY)6.45
Fwd EY7.11%
FCF(TTM)2.45
FCFY2.7%
OCF(TTM)5.23
OCFY5.77%
SpS122.31
BVpS29.83
TBVpS-4.57
PEG (NY)0.53
PEG (5Y)1.03
Graham Number59.53
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%
ROICexgc growth 3Y36.34%
ROICexgc 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 | 3.44 |
F-Score6
WACC10.54%
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)35.73%
EPS 3Y72.09%
EPS 5Y16.63%
EPS Q2Q%3.15%
EPS Next Y32.14%
EPS Next 2Y23.51%
EPS Next 3Y19.1%
EPS Next 5Y21.68%
Revenue 1Y (TTM)7.35%
Revenue growth 3Y17.39%
Revenue growth 5Y7.34%
Sales Q2Q%8.62%
Revenue Next Year10.25%
Revenue Next 2Y8.44%
Revenue Next 3Y7.78%
Revenue Next 5Y7.74%
EBIT growth 1Y29.97%
EBIT growth 3Y54.44%
EBIT growth 5Y16.87%
EBIT Next Year57.04%
EBIT Next 3Y21.55%
EBIT Next 5Y18%
FCF growth 1Y148.37%
FCF growth 3Y35.37%
FCF growth 5Y32.07%
OCF growth 1Y239.28%
OCF growth 3Y40.19%
OCF growth 5Y19.87%
DXP ENTERPRISES INC / DXPE FAQ
What is the fundamental rating for DXPE stock?
ChartMill assigns a fundamental rating of 6 / 10 to DXPE.
Can you provide the valuation status for DXP ENTERPRISES INC?
ChartMill assigns a valuation rating of 6 / 10 to DXP ENTERPRISES INC (DXPE). This can be considered as Fairly Valued.
What is the profitability of DXPE stock?
DXP ENTERPRISES INC (DXPE) has a profitability rating of 7 / 10.
How financially healthy is DXP ENTERPRISES INC?
The financial health rating of DXP ENTERPRISES INC (DXPE) is 6 / 10.
What is the expected EPS growth for DXP ENTERPRISES INC (DXPE) stock?
The Earnings per Share (EPS) of DXP ENTERPRISES INC (DXPE) is expected to grow by 32.14% in the next year.