DXP Enterprises, Inc. (DXPE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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DXP Enterprises, Inc.

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Why is DXP Enterprises, Inc. ?

Poor Management Efficiency with a low ROCE of 11.70%

The company has been able to generate a Return on Capital Employed (avg) of 11.70% signifying low profitability per unit of total capital (equity and debt)

Healthy long term growth as Operating profit has grown by an annual rate 67.53%

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 337.02
DEBT-EQUITY RATIO (HY) Highest at 134.45 %
NET PROFIT(Q) Lowest at USD 20.83 MM

With ROCE of 17.04%, it has a fair valuation with a 2.68 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 120.78%, its profits have risen by 25.2% ; the PEG ratio of the company is 1

High Institutional Holdings at 90.53%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 120.78% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to DXP Enterprises, Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is DXP Enterprises, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

DXP Enterprises, Inc.

120.78%

5.07

52.38%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.94%

EBIT Growth (5y)

67.53%

EBIT to Interest (avg)

2.22

Debt to EBITDA (avg)

3.61

Net Debt to Equity (avg)

1.19

Sales to Capital Employed (avg)

1.78

Tax Ratio

17.44%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

90.53%

ROCE (avg)

11.70%

ROE (avg)

12.01%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.53

EV to EBIT

15.72

EV to EBITDA

12.92

EV to Capital Employed

2.68

EV to Sales

1.39

PEG Ratio

0.98

Dividend Yield

ROCE (Latest)

17.04%

ROE (Latest)

18.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 120.86 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 12.35 times

RAW MATERIAL COST(Y)

Fallen by -2.59% (YoY

CASH AND EQV(HY)

Highest at USD 517.16 MM

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 337.02

DEBT-EQUITY RATIO (HY)

Highest at 134.45 %

NET PROFIT(Q)

Lowest at USD 20.83 MM

EPS(Q)

Lowest at USD 1.22

Here's what is working for DXP Enterprises, Inc.

Inventory Turnover Ratio

Highest at 12.35 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at USD 120.86 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 517.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.59% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 12.05 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for DXP Enterprises, Inc.

Interest Coverage Ratio

Lowest at 337.02

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

Lowest at USD 20.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 1.22

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 134.45 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio