NasdaqGS:DXPE

Stock Analysis Report

Executive Summary

DXP Enterprises, Inc., together with its subsidiaries, engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services to energy and industrial customers primarily in the United States and Canada.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has DXP Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DXPE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-17.4%

DXPE

-1.8%

US Trade Distributors

-1.1%

US Market


1 Year Return

-73.0%

DXPE

-26.3%

US Trade Distributors

-13.6%

US Market

Return vs Industry: DXPE underperformed the US Trade Distributors industry which returned -26.3% over the past year.

Return vs Market: DXPE underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

DXPEIndustryMarket
7 Day-17.4%-1.8%-1.1%
30 Day-60.0%-25.9%-17.8%
90 Day-71.5%-35.6%-22.5%
1 Year-73.0%-73.0%-24.8%-26.3%-11.9%-13.6%
3 Year-69.8%-69.8%-17.6%-21.5%12.1%4.9%
5 Year-75.1%-75.1%-1.5%-8.9%30.5%16.3%

Price Volatility Vs. Market

How volatile is DXP Enterprises's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DXP Enterprises undervalued compared to its fair value and its price relative to the market?

5.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DXPE ($11.28) is trading above our estimate of fair value ($4.97)

Significantly Below Fair Value: DXPE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DXPE is good value based on its PE Ratio (5.5x) compared to the Trade Distributors industry average (10.8x).

PE vs Market: DXPE is good value based on its PE Ratio (5.5x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: DXPE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DXPE is good value based on its PB Ratio (0.6x) compared to the US Trade Distributors industry average (0.9x).


Next Steps

Future Growth

How is DXP Enterprises forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-72.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DXPE's earnings are forecast to decline over the next 3 years (-72.8% per year).

Earnings vs Market: DXPE's earnings are forecast to decline over the next 3 years (-72.8% per year).

High Growth Earnings: DXPE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DXPE's revenue is expected to decline over the next 3 years (-8% per year).

High Growth Revenue: DXPE's revenue is forecast to decline over the next 3 years (-8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DXPE's Return on Equity is forecast to be low in 3 years time (3.1%).


Next Steps

Past Performance

How has DXP Enterprises performed over the past 5 years?

68.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DXPE has high quality earnings.

Growing Profit Margin: DXPE's current net profit margins (2.8%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: DXPE has become profitable over the past 5 years, growing earnings by 68.7% per year.

Accelerating Growth: DXPE's earnings growth over the past year (1.1%) is below its 5-year average (68.7% per year).

Earnings vs Industry: DXPE earnings growth over the past year (1.1%) underperformed the Trade Distributors industry 5.1%.


Return on Equity

High ROE: DXPE's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is DXP Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: DXPE's short term assets ($408.5M) exceed its short term liabilities ($148.2M).

Long Term Liabilities: DXPE's short term assets ($408.5M) exceed its long term liabilities ($295.1M).


Debt to Equity History and Analysis

Debt Level: DXPE's debt to equity ratio (69%) is considered high.

Reducing Debt: DXPE's debt to equity ratio has reduced from 168.3% to 69% over the past 5 years.

Debt Coverage: DXPE's debt is not well covered by operating cash flow (17.4%).

Interest Coverage: DXPE's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: DXPE has a high level of physical assets or inventory.

Debt Coverage by Assets: DXPE's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is DXP Enterprises's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DXPE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DXPE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DXPE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DXPE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DXPE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

David Little (67yo)

24.25s

Tenure

US$2,065,014

Compensation

Mr. David R. Little serves as the President of Best Equipment Service & Sales Company, LLC. Mr. Little has been the Chairman, Chief Executive Officer and President at DXP Enterprises, Inc. since 1996. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.07M) is above average for companies of similar size in the US market ($USD1.45M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Little
Chairman of the Board24.25yrsUS$2.07m7.4% $14.7m
Kent Yee
Senior VP of Finance2.83yrsUS$731.83k0.12% $244.6k
Christopher Gregory
Senior VP of Information Technology & Chief Information Officer2.08yrsUS$1.40m0.14% $282.0k
John Jeffery
Senior Vice President of Supply Chain Servicesno dataUS$737.76k0.13% $257.8k
Todd Hamlin
Senior Vice President of Sales2.83yrsUS$734.31k0.085% $169.2k
Eugene Padgett
Senior VP & Chief Accounting Officer1.92yrsno data0.055% $108.7k
David Vinson
Senior Vice President of Innovative Pumping Solutions14.25yrsUS$455.42k0.037% $74.0k
Wick Norbert
VP & Controllerno datano data0.014% $27.0k
Valerie Mosley
Chief Executive Officer of Valmo Venturesno datano datano data

2.8yrs

Average Tenure

50yo

Average Age

Experienced Management: DXPE's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Little
Chairman of the Board24.25yrsUS$2.07m7.4% $14.7m
Timothy Halter
Independent Director18.75yrsUS$86.90k0.15% $298.8k
Joseph Mannes
Director0.17yrno datano data
Cletus Davis
Independent Director24.25yrsUS$86.90k0.11% $210.8k
David Patton
Independent Director3.75yrsUS$86.90k0.051% $101.4k

18.8yrs

Average Tenure

67yo

Average Age

Experienced Board: DXPE's board of directors are seasoned and experienced ( 18.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DXP Enterprises, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DXP Enterprises, Inc.
  • Ticker: DXPE
  • Exchange: NasdaqGS
  • Founded: 1908
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$199.067m
  • Shares outstanding: 17.65m
  • Website: https://www.dxpe.com

Number of Employees


Location

  • DXP Enterprises, Inc.
  • 5301 Hollister Street
  • Houston
  • Texas
  • 77040
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DXPENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1994
DX7DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1994

Biography

DXP Enterprises, Inc., together with its subsidiaries, engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services to energy and industrial customers primarily in the United States and Canada. It operates through three segments: Service Centers (SC), Supply Chain Services (SCS), and Innovative Pumping Solutions (IPS). The SC segment offers MRO products, equipment, and integrated services, including technical expertise and logistics services. It offers MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products, and safety services categories. This segment serves customers in the oil and gas, food and beverage, petrochemical, transportation, other general industrial, mining, construction, chemical, municipal, agriculture, and pulp and paper industries. The SCS segment manages procurement and inventory management solutions; and offers outsourced MRO solutions for sourcing MRO products, including inventory optimization and management, store room management, transaction consolidation and control, vendor oversight and procurement cost optimization, productivity improvement services, and customized reporting. Its programs include SmartAgreement, a procurement solution for various MRO categories; SmartBuy, an on-site or centralized MRO procurement solution; SmartSource, an on-site procurement and storeroom management solution; SmartStore, an e-Catalog solution; SmartVend, an industrial dispensing solution; and SmartServ, an integrated service pump solution. The IPS segment fabricates and assembles custom-made pump packages, remanufactures pumps, and manufactures branded private label pumps. The company was founded in 1908 and is based in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 01:06
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.