DXP Enterprises, Inc. (DXPE) AI Stock Analysis

DXP Enterprises, Inc. distributes maintenance, repair, and operating (MRO) products, equipment, and services primarily across the United States and Canada. The company operates through three segments: Service Centers, Supply Chain Services, and Innovative Pumping Solutions. Service Centers provides rotating equipment, bearings, power transmission components, hoses, fluid power, metalworking tools, fasteners, and safety products to industries including oil and gas, petrochemicals, and food and beverage. Supply Chain Services offers outsourced procurement and inventory management through solutions such as SmartAgreement, SmartBuy, SmartSource, SmartStore, SmartVend, and SmartServ. Innovative Pumping Solutions specializes in pump solutions.

Between FY2021 and FY2025, annual revenue expanded from $1.11B to $2.02B, with annual growth reaching 11.9% in FY2025. Over the same period, gross margin widened from 29.5% to 31.5%, while operating margin increased from 3.6% to 8.8%. Net income rose from $16.5M in FY2021 to $88.7M in FY2025, lifting diluted earnings per share from $0.83 to $5.42. For the trailing twelve months ending June 30, 2026, revenue stood at $2.14B with an operating margin of 9.6% and a net profit margin of 4.4%. In the latest quarter, revenue grew 15.6% year-over-year while quarterly earnings expanded 23.0%.

As of June 30, 2026, DXP held $226.6M in cash and short-term investments against total debt of $899.0M, resulting in net debt of $672.4M and a debt-to-equity ratio of 1.66. The current ratio was 2.99 with shareholders' equity of $540.7M. In FY2025, operating cash flow was $94.3M, supporting $40.3M in capital expenditures and generating free cash flow of $54.0M. The company also deployed $17.1M toward share buybacks, with its share count declining 12.8% over five years.

DXPE closed at $175.79 on October 16, 2026, representing a market capitalization of $2.73B and an enterprise value of $3.64B. The stock trades at a trailing price-to-earnings ratio of 30.9x, above the 24.8x median of its US-listed Industrials peers. Its forward P/E of 13.6x compares to the peer median of 17.2x, while its EV/EBITDA stands at 15.4x versus the peer median of 13.9x. The stock has delivered a 1-year return of 55.3% and a 5-year return of 445.3%, outperforming the S&P 500 (SPY) returns of 16.8% and 83.0% over the same periods.

Wall Street coverage consists of 2 analysts, with 1 Strong Buy and 1 Hold rating. The mean price target is $200.00, representing 13.8% upside compared to the last close of $175.79. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $2.27B and earnings per share of $6.46, representing 19.2% earnings growth. Over the last 4 quarters, the company beat earnings estimates 1 time. The next earnings date is scheduled for November 5, 2026.

This page is an AI-written research summary of DXP Enterprises, Inc. (DXPE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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