NasdaqGS:DXPE

Stock Analysis Report

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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. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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 is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: DXPE's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

8.1%

DXPE

1.3%

US Trade Distributors

1.5%

US Market


1 Year Return

-40.2%

DXPE

21.2%

US Trade Distributors

22.3%

US Market

Return vs Industry: DXPE underperformed the US Trade Distributors industry which returned 20.2% over the past year.

Return vs Market: DXPE underperformed the US Market which returned 22.1% over the past year.


Shareholder returns

DXPEIndustryMarket
7 Day8.1%1.3%1.5%
30 Day48.5%16.9%8.8%
90 Day20.0%20.0%10.8%
1 Year-40.2%-40.2%23.8%21.2%25.1%22.3%
3 Year-10.9%-10.9%37.8%30.9%49.5%39.6%
5 Year-14.8%-14.8%107.8%92.1%105.8%83.3%

Long-Term 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?

1.33x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DXPE ($24.12) is trading above our estimate of fair value ($1.53)

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


Price To Earnings Ratio

PE vs Industry: DXPE is unprofitable, so we can't compare its PE Ratio to the US Trade Distributors industry average.

PE vs Market: DXPE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DXPE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DXPE is good value based on its PB Ratio (1.3x) compared to the US Trade Distributors industry average (1.8x).


Next Steps

Future Growth

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

117.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DXPE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: DXPE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DXPE's is expected to become profitable in the next 3 years.

Revenue vs Market: DXPE's revenue (4.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: DXPE's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DXPE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has DXP Enterprises performed over the past 5 years?

55.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DXPE is currently unprofitable.

Growing Profit Margin: DXPE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DXPE is unprofitable, but has reduced losses over the past 5 years at a rate of 55% per year.

Accelerating Growth: Unable to compare DXPE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DXPE is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-6.9%).


Return on Equity

High ROE: DXPE has a negative Return on Equity (-7.71%), as it is currently unprofitable.


Next Steps

Financial Health

How is DXP Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: DXPE's short term assets ($402.7M) exceed its short term liabilities ($155.9M).

Long Term Liabilities: DXPE's short term assets ($402.7M) exceed its long term liabilities ($257.3M).


Debt to Equity History and Analysis

Debt Level: DXPE's debt to equity ratio (65.6%) is considered high.

Reducing Debt: DXPE's debt to equity ratio has reduced from 185.8% to 65.6% over the past 5 years.

Debt Coverage: DXPE's debt is well covered by operating cash flow (59.4%).

Interest Coverage: DXPE is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


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 recent payouts.

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

3.5yrs

Average management tenure


CEO

David Little (68 yo)

24.92yrs

Tenure

US$2,768,390

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 ($USD2.77M) is above average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
David Little
Chairman of the Board24.92yrsUS$2.77m7.34%
$ 31.5m
Kent Yee
Senior VP of Finance3.5yrsUS$381.84k0.12%
$ 523.1k
Christopher Gregory
Senior VP of Information Technology & Chief Information Officer2.75yrsUS$378.61k0.14%
$ 603.0k
John Jeffery
Senior Vice President of Supply Chain Servicesno dataUS$383.37k0.13%
$ 551.3k
Todd Hamlin
Senior Vice President of Sales3.5yrsUS$383.18k0.13%
$ 570.3k
Eugene Padgett
Senior VP & Chief Accounting Officer2.58yrsno data0.044%
$ 190.0k
David Vinson
Senior Vice President of Innovative Pumping Solutions14.92yrsUS$455.42k0.037%
$ 158.3k
Wick Norbert
VP & Controllerno datano data0.019%
$ 82.1k
Valerie Mosley
Chief Executive Officer of Valmo Venturesno datano datano data

3.5yrs

Average Tenure

51yo

Average Age

Experienced Management: DXPE's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Little
Chairman of the Board24.92yrsUS$2.77m7.34%
$ 31.5m
Timothy Halter
Independent Director19.42yrsUS$87.00k0.24%
$ 1.0m
Joseph Mannes
Independent Director0.83yrno data0.017%
$ 74.6k
David Patton
Independent Director4.42yrsUS$87.00k0.051%
$ 216.8k

11.9yrs

Average Tenure

64.5yo

Average Age

Experienced Board: DXPE's board of directors are seasoned and experienced ( 11.9 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$429.112m
  • Shares outstanding: 17.79m
  • 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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 00:11
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
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.