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 46.61%
3
Positive results in Sep 25
- ROCE(HY) Highest at 19.58%
- INVENTORY TURNOVER RATIO(HY) Highest at 12.27 times
- RAW MATERIAL COST(Y) Fallen by -1.67% (YoY)
4
With ROCE of 16.65%, it has a attractive 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 51.02%, its profits have risen by 22.8% ; the PEG ratio of the company is 1.1
5
High Institutional Holdings at 91.15%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 5.24% over the previous quarter.
6
Consistent Returns over the last 3 years
- Along with generating 51.02% 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.
60.27%
3.40
50.22%
S&P 500
16.12%
0.77
19.29%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.91%
EBIT Growth (5y)
46.61%
EBIT to Interest (avg)
2.22
Debt to EBITDA (avg)
3.61
Net Debt to Equity (avg)
1.19
Sales to Capital Employed (avg)
1.83
Tax Ratio
17.44%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
91.15%
ROCE (avg)
11.70%
ROE (avg)
12.01%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
4.46
EV to EBIT
16.07
EV to EBITDA
13.13
EV to Capital Employed
2.68
EV to Sales
1.38
PEG Ratio
1.07
Dividend Yield
NA
ROCE (Latest)
16.65%
ROE (Latest)
17.70%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
ROCE(HY)
Highest at 19.58%
INVENTORY TURNOVER RATIO(HY)
Highest at 12.27 times
RAW MATERIAL COST(Y)
Fallen by -1.67% (YoY
CASH AND EQV(HY)
Highest at USD 236.76 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 115.46 %
NET SALES(Q)
Highest at USD 513.72 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for DXP Enterprises, Inc.
Inventory Turnover Ratio
Highest at 12.27 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
Highest at USD 513.72 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Cash and Eqv
Highest at USD 236.76 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 115.46 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -1.67% (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 9.92 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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