| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 48 | 29.0x | 17.3x | Around median | |
Growth | 71 | 11.5% | 7.1% | Top tier | |
Quality | 74 | 11.9% | 4.5% | Top tier | |
Safety | 57 | 2.8x | 2.6x | Around median | |
Capital Return | 50 | 0.00% | 0.06% | Around median | |
Momentum | 65 | 61.7% | -1.6% | Around median | |
Sentiment | 23 | 1 | 3 | Bottom tier |
The floor: what the company is worth if growth stopped today
65% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
DXP Enterprises operates as a distributor and technical solutions provider for industrial equipment, generating revenue through three segments: Service Centers, Innovative Pumping Solutions IPS, and Supply Chain Services. The company sells and supports pumps, automation, filtration, and processing equipment; provides engineered solutions and maintenance, repair, and operations services; and helps customers manage procurement and inventory. It serves the water and wastewater, energy infrastructure, general industrial, air compression, and data center markets.
In fiscal Q2 2026, revenue increased 15.6% year over year to $576.5 million, including $49.8 million from acquired businesses, while organic revenue grew 11.1% to $526.6 million. Net income was $28.7 million, and diluted earnings per share were $1.76 versus $1.43 in fiscal Q2 2025, while operating income increased 20.7% to $55.5 million. Gross margin improved to 31.8% from 31.6%, and adjusted earnings before interest, taxes, depreciation, and amortization reached $70.4 million at a record margin of 12.2%.
The Service Centers segment remained the largest source of revenue in fiscal Q2 2026, with sales of $367.9 million and growth of 8.3%, followed by IPS with sales of $142.7 million and growth of 52.6%, then Supply Chain Services with sales of $65.8 million and growth of 0.6%. Within IPS, DXP Water generated approximately $97.3 million in sales, and water and wastewater activities approached 70% of segment sales, illustrating a shift in the growth mix toward higher-margin engineered solutions.
The average analyst price target is $187, compared with a high target of $220 and a low target of $154, with a neutral consensus. The wide $66 range indicates a clear divergence in assessments of the sustainability of growth and margins. The average target is below the 52-week range high of $208, while the highest target exceeds that high, and no published price-to-earnings ratio is available in the data despite earnings per share of 5.379 for fiscal 2026 on a trailing twelve-month basis. DXPE's valuation therefore remains heavily dependent on continued growth at DXP Water, successful acquisitions, and leverage control.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
DXP Enterprises' sales increased 15.6% year over year to $576.5 million, with organic growth of 11.1% and a $49.8 million contribution from acquisitions. IPS led the expansion with growth of 52.6% to $142.7 million, while DXP Water generated sales of $97.3 million. This mix helped increase the adjusted earnings before interest, taxes, depreciation, and amortization margin to 12.2% and diluted earnings per share to $1.76.
Water and wastewater approached 70% of IPS sales in fiscal Q2 2026, and according to the chief financial officer, these activities carry a higher average operating margin. DXP Water generated sales of $97.3 million during the quarter and $175.5 million during the first half of fiscal 2026, an increase of 85.6% year over year. The platform also recorded its fifteenth consecutive quarter of sequential growth, and the acquisition of Mequipco Limited on August 1, 2026 established a platform for expansion in Canada.
No. Organic revenue reached $526.6 million in fiscal Q2 2026, up 11.1% from the comparable period. IPS grew organically by 13.3%, and organic Service Centers sales increased by $40.9 million year over year. Nevertheless, acquisitions remain influential, adding $49.8 million to quarterly sales, while the company spent $135.6 million on four businesses during the first half of fiscal 2026.
Automated analysis for informational purposes only — not investment advice.
The adjusted earnings before interest, taxes, depreciation, and amortization margin reached 12.2% in fiscal Q2 2026, compared with 11.5% in fiscal Q2 2025. The chief financial officer explained during the August 6, 2026 call that this was the first quarter in which the company reached the 12% level and that it does not provide direct guidance guaranteeing a repeat. Management believes sustainably reaching this level is possible over the longer term, particularly as the contribution of more profitable water and wastewater activities within IPS increases.
Cash totaled $226.6 million as of June 30, 2026, and total liquidity, including the available credit facility, reached $374.5 million. In contrast, total debt was $842.5 million, the secured leverage ratio was 2.3 times, and the fixed-charge coverage ratio was 2.97 times. On July 2, 2026, the company increased the limit of its asset-based credit facility to $225 million and extended its maturity to July 2031, after which S&P Global Ratings raised its rating to B+ on July 20, 2026.
The analyst consensus is neutral, and the average price target is $187, within a wide range extending from $154 to $220. The average target is below the 52-week range high of $208, while no published price-to-earnings ratio is available in the data to value the stock directly on an earnings basis. The main operational risks are debt of $842.5 million, the need to integrate acquisitions, no guarantee that the 12% margin will continue, and Supply Chain Services growth of only 0.6% in fiscal Q2 2026.