DXP Enterprises, Inc. engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services to industrial customers in the United States. It operates through three segments: Service Centers, Supply Chain Services, and Innovative Pumping Solutions. The company was founded in 1908 and is based in Houston, Texas.
DXPE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for DXPE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Dxp Enterprises Inc ranked in the 66th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Dxp Enterprises Inc ended up being:
In the past 5.41 years, Dxp Enterprises Inc has a compound free cash flow growth rate of 0%; that's higher than merely 20.96% of free cash flow generating stocks in the Industrials sector.
The business' balance sheet reveals debt to be 47% of the company's capital (with equity being the remaining amount). Approximately 69.63% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Dxp Enterprises Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 22.19% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DXPE, try OMAB, UPWK, AAN, CBZ, and JBHT.
Energy Market Drags; DXPE Looks Up To Non-Energy Source While the energy market weakness out will not allow DXP Enterprises (DXPE) to break the shackle in the near term, there have been signs of a turnaround in the industrial activity and consumer confidence at the start of Q3. Although the...
Badsha Chowdhury on Seeking Alpha | September 8, 2020
HOUSTON--(BUSINESS WIRE)--DXP Enterprises, Inc. (NASDAQ: DXPE) today announced financial results for the second quarter ended June 30, 2020. The following are results for the three and six months ended June 30, 2020, compared to the three and six months ended June 30, 2019. A reconciliation of the non-GAAP financial measures can be found in the back of this press release. Second Quarter 2020 financial highlights: Sales were $251.4 million, compared to $333.3 million for the second quarter of 20
DXP Enterprises, Inc. (NASDAQ:DXPE), a leading products and service distributor that adds value and total cost savings solutions to MRO and OEM customers in virtually every industry, plans to issue a press release announcing its financial results for the second quarter ended June 30, 2020, at 7:00 A.M. Central Time on Thursday, August 6, 2020 and to host a conference call to be web cast live on the Company’s website (www.dxpe.com) at 10:30 A.M. Central Time.