Is the business good?
How good a business is DXPE?
DXP Enterprises, Inc. earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
13%
Return on invested capital · cost of capital 9.0% · 3.6 points above what the capital costs: growth creates value
- Operating margin
- 8.7%
Operating margin · Industrial Distribution median 8.5% · 12 months to Q1 2026
- Cash conversion
- 1.10×
Cash conversion · 0.45× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −2.8% |
| FY2021 | 3.6% |
| FY2022 | 6.6% |
| FY2023 | 8.3% |
| FY2024 | 8.1% |
| FY2025 | 8.8% |
Details›
- Gross margin12 months to Q1 2026
- 32%
- Operating margin12 months to Q1 2026
- 8.7%
- Net margin12 months to Q1 2026
- 4.3%
- Free cash flow margin
- 4.7%
- Revenue, trailing twelve months
- $2.06B
- Free cash flow, trailing twelve months
- $97M
- Net income, trailing twelve months
- $88M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Industrial Distribution
Ranks #5 of 17 by Smart Score