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DXP Enterprises
(NASDAQ:DXPE)
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Rating:68Neutral
Price Target:
$192.00
▲(0.63% Upside)
Action:Downgraded
Date:10/30/26
The score is driven primarily by solid financial performance (scaling revenue and improving margins with a strong recent free-cash-flow rebound) and a notably upbeat earnings update (record EBITDA margin and improving liquidity/credit profile). These positives are tempered by balance-sheet leverage uncertainty, mixed technical momentum (negative MACD and below the 50-day average), and a less compelling valuation backdrop (P/E ~28 with no dividend yield provided).
Positive Factors
Revenue and Profit Growth
Strong sales and operating-income growth indicate that DXP is expanding its industrial distribution platform while converting scale into improved earnings. Continued demand across its served markets can strengthen customer relationships, support reinvestment, and increase operating leverage over the next several quarters.
Negative Factors
Elevated Debt Burden
Despite acceptable leverage ratios, the absolute debt balance remains material and is already contributing to higher interest expense. This can constrain future acquisition or investment capacity, reduce earnings resilience, and make sustained cash generation more important during weaker industrial conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profit Growth
Strong sales and operating-income growth indicate that DXP is expanding its industrial distribution platform while converting scale into improved earnings. Continued demand across its served markets can strengthen customer relationships, support reinvestment, and increase operating leverage over the next several quarters.
Read all positive factors
DXP Enterprises (DXPE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.74B
Dividend YieldN/A
Average Volume (3M)169.19K
Price to Earnings (P/E)29.5
Beta (1Y)1.68
Revenue Growth11.47%
EPS Growth8.43%
CountryUS
Employees3,286
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)5.97
Shares Outstanding15,517,148
10 Day Avg. Volume208,239
30 Day Avg. Volume169,193
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)3.44
Price to Sales (P/S)0.85
P/FCF Ratio31.72
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue1.60
Enterprise Value/Gross Profit5.05
Enterprise Value/Ebitda14.56
Forecast
1Y Price Target
$220.00Price Target Upside15.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)6.46
Revenue Forecast (FY)$2.27B
DXP Enterprises Business Overview & Revenue Model
Company Description
DXP Enterprises, Inc., operating through its subsidiaries, specializes in providing essential maintenance, repair, and operational (MRO) products, machinery, and related services. Its primary customer base comprises energy and industrial companies...
How the Company Makes Money
DXP primarily makes money by selling industrial products and providing related services to commercial and industrial customers, generating revenue when customers purchase equipment, consumables, and service work required to keep facilities operati...
DXP Enterprises Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed a clearly positive operational and financial quarter: strong top-line growth (15.6% YoY), robust organic growth (11.1% YoY), large outperformance in the IPS and Water platforms, margin expansion to a record 12.2% adjusted EBITDA, and a meaningful free cash flow turnaround. The company also demonstrated balance sheet flexibility and successful acquisition execution supported by an S&P upgrade. Challenges noted include flat performance in Supply Chain Services, higher SG&A and interest/tax headwinds, elevated total debt and some project timing/backlog variability, along with macroeconomic uncertainty. Overall, the positives materially outweigh the negatives.Positive Updates
Strong Revenue Growth
Total sales of $576.5 million in Q2 2026, up 15.6% year-over-year.
Negative Updates
Supply Chain Services Growth Weakness
Supply Chain Services sales of $65.8 million were essentially flat, up only 0.6% year-over-year, with growth partially offset by lower activity with certain existing customers.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Total sales of $576.5 million in Q2 2026, up 15.6% year-over-year.
Read all positive updates
Company Guidance
Management gave no formal numeric guidance but signaled a positive outlook supported by many Q2/H1 metrics: Q2 sales of $576.5M (+15.6% y/y; organic +11.1%), adjusted EBITDA $70.4M (12.2% margin, a company high), gross margin 31.8%, net income $28.7M and EPS $1.76; segment detail included IPS up 52.6% to $142.7M (IPS backlog improving — energy backlog +7.3% sequentially and backlog ex‑large projects +10% q/q), DXP Water $97.3M in Q2 and $175.5M YTD (+85.6%), Service Centers $367.9M (+8.3%) and SCS $65.8M (+0.6%); operational cash metrics showed Q2 free cash flow $29.8M, H1 FCF $56M and LTM FCF $118.7M, cash $226.6M, ABL availability $147.9M (total liquidity $374.5M, since increased to $225M ABL), total debt $842.5M, secured leverage 2.3x and fixed‑charge coverage 2.97x; capex was $2.6M in Q2, average daily sales were $9.15M in Q2 (Jan–Jun: $7.2M, $8.4M, $9.2M, $9.1M, $9.0M, $9.4M), and management completed 4 H1 acquisitions for $135.6M (Q2 acquisition sales $49.8M) plus Mequipco post‑quarter and earned an S&P upgrade to B+. Their qualitative guidance: priorities remain driving organic growth, expanding margins (with an aim to sustain ~12% adjusted EBITDA), growing the water and wastewater platform, executing disciplined acquisitions and continuing strong free cash flow, but no explicit forward numeric guidance was provided.DXP Enterprises Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.14B | 2.02B | 1.80B | 1.68B | 1.48B | 1.11B |
| Gross Profit | 679.52M | 635.93M | 556.28M | 505.29M | 422.04M | 328.51M |
| EBITDA | 235.68M | 218.60M | 182.30M | 170.18M | 123.54M | 67.41M |
| Net Income | 93.14M | 88.68M | 70.49M | 68.81M | 48.16M | 16.50M |
Balance Sheet | ||||||
| Total Assets | 1.77B | 1.69B | 1.35B | 1.18B | 1.04B | 906.19M |
| Cash, Cash Equivalents and Short-Term Investments | 226.62M | 303.78M | 148.32M | 173.12M | 46.03M | 48.99M |
| Total Debt | 899.00M | 982.00M | 676.36M | 575.97M | 471.85M | 376.82M |
| Total Liabilities | 1.23B | 1.19B | 926.71M | 796.56M | 671.89M | 547.50M |
| Stockholders Equity | 540.74M | 498.44M | 422.79M | 380.88M | 365.39M | 358.64M |
Cash Flow | ||||||
| Free Cash Flow | 118.66M | 53.98M | 77.14M | 93.96M | 978.00K | 31.09M |
| Operating Cash Flow | 134.60M | 94.26M | 102.21M | 106.22M | 5.89M | 37.09M |
| Investing Cash Flow | -176.13M | -99.25M | -181.69M | -22.65M | -53.42M | -69.02M |
| Financing Cash Flow | 156.49M | 158.87M | 56.80M | 43.58M | 44.31M | -38.49M |
DXP Enterprises Technical Analysis
Positive
190.80
Price Trends
182.47
Negative
176.76
Negative
161.30
Positive
Market Momentum
-4.63
Positive
50.06
Neutral
61.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXPE, the sentiment is Positive. The current price of 190.8 is above the 20-day moving average (MA) of 176.68, above the 50-day MA of 182.47, and above the 200-day MA of 161.30, indicating a neutral trend. The MACD of -4.63 indicates Positive momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 61.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DXPE.
DXP Enterprises Risk Analysis
DXP Enterprises disclosed 39 risk factors in its most recent earnings report. DXP Enterprises reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DXP Enterprises Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $64.62B | 34.96 | 48.70% | 0.71% | 7.80% | -0.65% | |
72 Outperform | $11.04B | 26.46 | 22.68% | 0.67% | 8.45% | 8.52% | |
68 Neutral | $2.74B | 29.53 | 18.27% | ― | 11.47% | 8.43% | |
66 Neutral | $6.87B | 30.81 | 15.87% | 2.85% | 6.37% | 11.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $1.62B | 185.93 | 1.37% | 5.18% | 6.45% | 108.40% | |
55 Neutral | $3.01B | -15.57 | -9.76% | ― | 69.84% | -238.39% |
* Industrials Sector Average
DXPE
DXP Enterprises
176.29
55.29
45.69%
AIT
Applied Industrial Technologies
302.43
48.23
18.97%
DSGR
Distribution Solutions Group
35.01
7.14
25.62%
MSM
MSC Industrial
122.92
40.94
49.94%
GWW
WW Grainger
1,371.86
423.46
44.65%
DNOW
Now
16.66
1.89
12.80%
DXP Enterprises Corporate Events
Business Operations and StrategyStock Buyback
DXP Enterprises Authorizes New $150 Million Share Buyback
Positive
Oct 29, 2026
On October 28, 2026, DXP Enterprises, Inc. announced that its board authorized a new share repurchase program allowing the company to buy back up to $150 million or 1.0 million shares of common stock over the next 24 months, following the conclusi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.