📊 DXPE Key Takeaways
Is Dxp Enterprises Inc. (DXPE) a Good Investment?
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.
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.
Why Buy Dxp Enterprises Inc. Stock? 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
- 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
- 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
- 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
- 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
- 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
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 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 |
|---|---|---|---|
| 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.
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
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775854114.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775854071.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775851609.xml | View → |
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775844113.xml | View → |
| Apr 9, 2026 | 4 | xslF345X06/wk-form4_1775768647.xml | View → |
❓ Frequently Asked Questions about DXPE
What is the AI rating for DXPE?
Dxp Enterprises Inc. (DXPE) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 74% combined 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. 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: 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. 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 $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 April 2026, Dxp Enterprises Inc. has a BUY rating with 74% 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).
Is Dxp Enterprises Inc. carrying too much debt?
DXPE has a debt-to-equity ratio of 1.64x, which is above the Industrial sector average of 0.7x. However, the current ratio of 3.34 suggests adequate short-term liquidity.