DXP Enterprises Inc. Common Stock (DXPE)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and don't need much debt. DXP Enterprises distributes maintenance, repair, and operating products, equipment, and services to industrial customers. The operating record is decent. In fiscal 2025, the year ended 2025-12-31, revenue was $2.0B and net income was $88.7M, or $5.37 diluted EPS. That compares with fiscal 2024, ended 2024-12-31, when revenue was $1.8B, net income $70.5M, and diluted EPS $4.22. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $576.5M and net income $28.7M, or $1.76 diluted EPS, versus fiscal Q2 2025 revenue of $498.7M, net income of $23.6M, and diluted EPS of $1.43. FairStock labels it a FAST GROWER because profit grew 52.3% a year over four years and revenue 16.0%. The blemish is leverage and returns: FairStock calculates D/E 1.66 and ROCE 7.52%, though ROE is 18.47%. Piotroski is 8/9 and Altman 2.64. Trailing free cash flow is $118.7M, a 4.2% FCF yield. But at the 2026-10-13 close of $183.24, FairStock calculates P/E 32.20, P/B 5.25, PEG 1.49, EV/EBITDA 14.92, and a Graham Number of $66.82, leaving a margin of safety of -174.23%. The market is paying up for growth. I like the business progress but not the price; it needs continued execution to justify the premium.

In plain English: DXP Enterprises sells parts, equipment, and repair services to industrial customers. The business has been growing sales and profits, and its latest quarter showed more gains, but profit margins are thin and it uses a fair amount of debt. At the 2026-10-13 closing price of $183.24, the shares look expensive compared with a conservative estimate of their value based on earnings and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer