ScoreWhy is DXP Enterprises, Inc. ?
1
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)
2
Healthy long term growth as Operating profit has grown by an annual rate 29.17%
3
Positive results in Jun 25
- NET PROFIT(HY) At USD 44.93 MM has Grown at 53.73%
- ROCE(HY) Highest at 20.33%
- INTEREST COVERAGE RATIO(Q) Highest at 376.26
4
With ROCE of 16.19%, it has a very attractive valuation with a 1.95 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 28.15%, its profits have risen by 25.4% ; the PEG ratio of the company is 0.6
5
High Institutional Holdings at 88.07%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Consistent Returns over the last 3 years
- Along with generating 28.15% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow 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.
33.21%
1.87
51.84%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.31%
EBIT Growth (5y)
29.17%
EBIT to Interest (avg)
2.22
Debt to EBITDA (avg)
3.61
Net Debt to Equity (avg)
1.19
Sales to Capital Employed (avg)
1.86
Tax Ratio
17.44%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
88.07%
ROCE (avg)
11.70%
ROE (avg)
12.01%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
3.08
EV to EBIT
12.05
EV to EBITDA
9.86
EV to Capital Employed
1.95
EV to Sales
1.02
PEG Ratio
0.57
Dividend Yield
NA
ROCE (Latest)
16.19%
ROE (Latest)
18.34%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
NET PROFIT(HY)
At USD 44.93 MM has Grown at 53.73%
ROCE(HY)
Highest at 20.33%
INTEREST COVERAGE RATIO(Q)
Highest at 376.26
RAW MATERIAL COST(Y)
Fallen by -2.41% (YoY
CASH AND EQV(HY)
Highest at USD 227.21 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 12.06 times
DEBTORS TURNOVER RATIO(HY)
Highest at 4.91 times
NET SALES(Q)
Highest at USD 498.68 MM
OPERATING PROFIT(Q)
Highest at USD 55.48 MM
OPERATING PROFIT MARGIN(Q)
Highest at 11.12 %
PRE-TAX PROFIT(Q)
Highest at USD 32.14 MM
EPS(Q)
Highest at USD 1.43
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for DXP Enterprises, Inc.
Interest Coverage Ratio
Highest at 376.26
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Profit
At USD 44.93 MM has Grown at 53.73%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Sales
Highest at USD 498.68 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 55.48 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 11.12 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 32.14 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
EPS
Highest at USD 1.43
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 227.21 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 12.06 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 4.91 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -2.41% (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 9.49 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
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