📊 DXPE Key Takeaways
Is DXPE a Good Investment? Thesis Analysis
DXP Enterprises demonstrates solid fundamental strength with 11.9% YoY revenue growth and healthy profitability margins across gross (31.5%), operating (8.8%), and net (4.4%) levels. The company maintains a fortress balance sheet with strong liquidity (3.34x current ratio) and excellent interest coverage (11.4x), supported by robust cash generation and 17.8% ROE, indicating efficient capital deployment despite elevated leverage.
Why Buy DXPE? Key Strengths
- Strong double-digit revenue growth (11.9% YoY) in industrial distribution sector demonstrates market demand strength
- Excellent liquidity position with 3.34x current ratio and $303.8M cash providing significant operational flexibility
- Robust profitability metrics with 17.8% ROE and 5.3% ROA showing efficient capital utilization and asset deployment
- Healthy interest coverage ratio of 11.4x indicates strong ability to service debt obligations despite 1.64x leverage
- Positive free cash flow of $54.0M provides financial flexibility for debt reduction or strategic investments
DXPE Investment Risks to Consider
- Elevated leverage with Debt/Equity ratio of 1.64x and long-term debt of $818.5M creates refinancing and economic sensitivity risks
- Modest net margin of 4.4% and FCF margin of 2.7% leave limited margin for operational deterioration or competitive pressures
- Muted net income growth (only 0.1% YoY) despite 11.9% revenue growth suggests margin compression or cost structure challenges requiring attention
- Working capital intensity implied by current ratio of 3.34x may indicate cash tied up in inventory/receivables typical of wholesale distribution
- Capital expenditure needs of $40.3M annually reduce free cash flow available for shareholder returns or debt reduction
Key Metrics to Watch
- Gross margin trend - monitor for compression from competitive pricing or input cost pressures
- Operating leverage and net income growth acceleration relative to revenue growth
- Debt/Equity trajectory and management's capital allocation priorities between debt reduction and growth investments
- Free cash flow consistency and working capital management efficiency
- Return on Equity sustainability as leverage is addressed
DXPE Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.7% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.34x current ratio provides a solid financial cushion.
DXPE Profitability Ratios
DXPE vs Industrial Sector
How DXP ENTERPRISES INC compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DXPE Overvalued or Undervalued?
Based on fundamental analysis, DXP ENTERPRISES INC shows some fundamental concerns relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
DXPE Balance Sheet & Liquidity
DXPE 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: DXP ENTERPRISES INC's revenue has grown significantly by 59% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.89 reflects profitable operations.
DXPE Growth Metrics (YoY)
DXPE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $472.9M | $11.3M | $1.27 |
| Q2 2025 | $445.6M | $11.3M | $1.00 |
| Q1 2025 | $412.6M | $11.3M | $0.67 |
| Q3 2024 | $419.2M | $11.3M | $0.93 |
| Q2 2024 | $428.0M | $11.3M | $1.00 |
| Q1 2024 | $412.6M | $11.3M | $0.67 |
| Q3 2023 | $387.3M | $13.9M | $0.71 |
| Q2 2023 | $367.8M | $14.4M | $0.74 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DXPE Capital Allocation
DXPE SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for DXP ENTERPRISES INC (CIK: 0001020710)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773184644.xml | View → |
| Mar 6, 2026 | 4 | xslF345X05/wk-form4_1772824146.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772752874.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772752812.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772668821.xml | View → |
❓ Frequently Asked Questions about DXPE
What is the AI rating for DXPE?
DXP ENTERPRISES INC (DXPE) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DXPE's key strengths?
Claude: Strong double-digit revenue growth (11.9% YoY) in industrial distribution sector demonstrates market demand strength. Excellent liquidity position with 3.34x current ratio and $303.8M cash providing significant operational flexibility.
What are the risks of investing in DXPE?
Claude: Elevated leverage with Debt/Equity ratio of 1.64x and long-term debt of $818.5M creates refinancing and economic sensitivity risks. Modest net margin of 4.4% and FCF margin of 2.7% leave limited margin for operational deterioration or competitive pressures.
What is DXPE's revenue and growth?
DXP ENTERPRISES INC reported revenue of $2.0B.
Does DXPE pay dividends?
DXP ENTERPRISES INC pays dividends, with $0.1M distributed to shareholders in the trailing twelve months.
Where can I find DXPE SEC filings?
Official SEC filings for DXP ENTERPRISES INC (CIK: 0001020710) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DXPE's EPS?
DXP ENTERPRISES INC has a diluted EPS of $5.37.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DXPE a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, DXP ENTERPRISES INC has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DXPE stock overvalued or undervalued?
Valuation metrics for DXPE: ROE of 17.8% (sector avg: 15%), net margin of 4.4% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy DXPE stock in 2026?
Our dual AI analysis gives DXP ENTERPRISES INC a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DXPE's free cash flow?
DXP ENTERPRISES INC's operating cash flow is $94.3M, with capital expenditures of $40.3M. FCF margin is 2.7%.
How does DXPE compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 4.4% (avg: 10%), ROE 17.8% (avg: 15%), current ratio 3.34 (avg: 1.8).