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 56th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 39.83%. In terms of the factors that were most noteworthy in this DCF analysis for DXPE, they are:
Dxp Enterprises Inc's effective tax rate, as measured by taxes paid relative to net income, is at 33 -- greater than 91.19% of US stocks with positive free cash flow.
Dxp Enterprises Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.93. This coverage rate is greater than that of merely 20.86% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 13. This value is greater than 84.42% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
EBF, MATW, BAH, RRD, and AJRD can be thought of as valuation peers to DXPE, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
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.