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These Factors Make DXP Enterprises, Inc. (NASDAQ:DXPE) An Interesting Investment

Simply Wall St

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DXP Enterprises, Inc. (NASDAQ:DXPE) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of DXPE, it is a company with great financial health as well as a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on DXP Enterprises here.

Proven track record with adequate balance sheet

DXPE delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, DXPE also outperformed its industry, which delivered a growth of -7.0%. This paints a buoyant picture for the company. DXPE's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that DXPE has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. DXPE’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps DXPE expand.

NasdaqGS:DXPE Income Statement, June 18th 2019

Next Steps:

For DXP Enterprises, I've compiled three important aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for DXPE’s future growth? Take a look at our free research report of analyst consensus for DXPE’s outlook.
  2. Valuation: What is DXPE worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether DXPE is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DXPE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.