📊 DXPE Key Takeaways
Is Dxp Enterprises Inc. (DXPE) a Good Investment?
DXP Enterprises demonstrates solid revenue growth (+11.9% YoY) and accelerating earnings (+27.3% EPS growth) with exceptional liquidity (2.98x current ratio, $213.4M cash). However, the company's elevated leverage (1.60x debt-to-equity) combined with marginal interest coverage (2.7x) and severely depressed returns on capital (3.9% ROE, 1.2% ROA) indicate structural inefficiencies in capital deployment that offset growth momentum.
DXP Enterprises shows solid fundamental momentum with double-digit revenue growth, healthy gross margins, and strong operating profitability. Financial health is supported by ample liquidity and strong interest coverage, but the balance sheet remains meaningfully leveraged and free cash flow conversion is still modest relative to revenue and earnings. If the company can sustain margin discipline while improving cash generation, the fundamental outlook remains favorable.
Dxp Enterprises Inc. Key Strengths (DXPE)
- Strong topline growth of +11.9% YoY revenue with accelerating earnings (+27.3% EPS growth)
- Excellent liquidity position with 2.98x current ratio and $213.4M in cash reserves
- Positive free cash flow generation of $26.3M despite capital intensity of distribution business
- Solid gross margin of 32.3% supports adequate pricing power in industrial wholesale segment
- Revenue growth of 11.9% with stable profitability indicates healthy demand and operating execution
- Strong liquidity profile with a 3.34x current ratio, 2.94x quick ratio, and over $303M in cash
- Operating margin of 8.8%, ROE of 17.8%, and 11.4x interest coverage reflect solid core earnings power
DXPE Stock Risks: Dxp Enterprises Inc. Investment Risks
- High financial leverage (1.60x debt-to-equity) with concerning interest coverage of 2.7x limits debt service flexibility and refinancing optionality
- Severely depressed returns on equity (3.9%) and assets (1.2%) indicate poor capital efficiency and suboptimal deployment of the $1.7B asset base
- Thin net margin of 3.8% and modest operating margin of 8.1% provide minimal buffer for economic cycles or competitive pressures in distribution
- Weak operating cash flow conversion (5.7% OCF-to-revenue) relative to reported net income suggests quality-of-earnings concerns
- Net income growth was essentially flat at 0.1% YoY, suggesting limited bottom-line operating leverage
- Leverage remains elevated with debt/equity of 1.64x and $818.48M in long-term debt
- Free cash flow is relatively weak at $53.98M and only a 2.7% FCF margin, which could constrain flexibility if conditions soften
Key Metrics to Watch
- Debt-to-equity ratio trend and absolute debt reduction trajectory
- Return on equity improvement path and capital expenditure efficiency
- Operating margin expansion and gross margin sustainability
- Interest coverage ratio and cash flow adequacy for debt service
- Free cash flow conversion relative to net income and operating cash flow
- Debt reduction progress and debt/equity trend
Dxp Enterprises Inc. (DXPE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.98x current ratio provides a solid financial cushion.
DXPE Profit Margin, ROE & Profitability Analysis
DXPE vs Industrial Sector: How Dxp Enterprises Inc. Compares
How Dxp Enterprises Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Dxp Enterprises Inc. Stock Overvalued? DXPE Valuation Analysis 2026
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.
Dxp Enterprises Inc. Balance Sheet: DXPE Debt, Cash & Liquidity
DXPE Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
DXPE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $476.6M | $20.0M | $1.22 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Dxp Enterprises Inc. Dividends, Buybacks & Capital Allocation
DXPE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Dxp Enterprises Inc. (CIK: 0001020710)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DXPE
What is the AI rating for DXPE?
Dxp Enterprises Inc. (DXPE) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DXPE's key strengths?
Claude: Strong topline growth of +11.9% YoY revenue with accelerating earnings (+27.3% EPS growth). Excellent liquidity position with 2.98x current ratio and $213.4M in cash reserves. ChatGPT: Revenue growth of 11.9% with stable profitability indicates healthy demand and operating execution. Strong liquidity profile with a 3.34x current ratio, 2.94x quick ratio, and over $303M in cash.
What are the risks of investing in DXPE?
Claude: High financial leverage (1.60x debt-to-equity) with concerning interest coverage of 2.7x limits debt service flexibility and refinancing optionality. Severely depressed returns on equity (3.9%) and assets (1.2%) indicate poor capital efficiency and suboptimal deployment of the $1.7B asset base. ChatGPT: Net income growth was essentially flat at 0.1% YoY, suggesting limited bottom-line operating leverage. Leverage remains elevated with debt/equity of 1.64x and $818.48M in long-term debt.
What is DXPE's revenue and growth?
Dxp Enterprises Inc. reported revenue of $521.7M.
Does DXPE pay dividends?
Dxp Enterprises Inc. pays dividends, with $0.0M 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 $1.22.
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 grade reflects both perspectives for balanced insights.
What is DXPE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Dxp Enterprises Inc. has a A grade with 69% 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 3.9% (sector avg: 15%), net margin of 3.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is DXPE's AI grade for 2026?
Our dual AI analysis gives Dxp Enterprises Inc. a combined A grade 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 $29.6M, with capital expenditures of $3.3M. FCF margin is 5.0%.
How does DXPE compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 3.8% (avg: 10%), ROE 3.9% (avg: 15%), current ratio 2.98 (avg: 1.8).
Is Dxp Enterprises Inc. carrying too much debt?
DXPE has a debt-to-equity ratio of 1.60x, which is above the Industrial sector average of 0.7x. However, the current ratio of 2.98 suggests adequate short-term liquidity.