DXP Enterprises, Inc. Fundamental Analysis
DXP Enterprises, Inc. (DXPE) shows moderate financial fundamentals with a PE ratio of 29.96, profit margin of 4.27%, and ROE of 17.90%. The company generates $2.1B in annual revenue with strong year-over-year growth of 11.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DXPE's fundamental strength across five key dimensions:
Efficiency Score
WeakDXPE struggles to generate sufficient returns from assets.
Valuation Score
WeakDXPE trades at a premium to fair value.
Growth Score
ExcellentDXPE delivers strong and consistent growth momentum.
Financial Health Score
ModerateDXPE shows balanced financial health with some risks.
Profitability Score
ModerateDXPE maintains healthy but balanced margins.
Key Financial Metrics
Is DXPE Expensive or Cheap?
P/E Ratio
DXPE trades at 29.96 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DXPE's PEG of 2.71 indicates potential overvaluation.
Price to Book
The market values DXP Enterprises, Inc. at 5.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.26 times EBITDA. This is generally considered low.
How Well Does DXPE Make Money?
Net Profit Margin
For every $100 in sales, DXP Enterprises, Inc. keeps $4.27 as profit after all expenses.
Operating Margin
Core operations generate 8.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.90 in profit for every $100 of shareholder equity.
ROA
DXP Enterprises, Inc. generates $5.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DXP Enterprises, Inc. generates limited operating cash flow of $120.54M, signaling weaker underlying cash strength.
Free Cash Flow
DXP Enterprises, Inc. produces free cash flow of $96.91M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.25 in free cash annually.
FCF Yield
DXPE converts 3.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How DXPE Stacks Against Its Sector Peers
| Metric | DXPE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.96 | 26.21 | Worse (Expensive) |
| ROE | 17.90% | 1254.00% | Weak |
| Net Margin | 4.27% | -35113.00% (disorted) | Weak |
| Debt/Equity | 1.76 | 0.74 | Weak (High Leverage) |
| Current Ratio | 2.98 | 9.96 | Strong Liquidity |
| ROA | 5.10% | -1487045.00% (disorted) | Weak |
DXPE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DXP Enterprises, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
128.27%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
444.80%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-0.37%
Industry Style: Cyclical, Value, Infrastructure
Declining