DXP Enterprises

DXPE

Industrial - Distribution · Industrials

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Strong

Cash Flow

Strong

Stability

Strong

Valuation

Good

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Winston Score History

The full picture

DXP Enterprises is an industrial distributor based in Houston, Texas. It sells pumps, bearings, valves, safety equipment, and other industrial supplies to companies in the oil and gas, food processing, mining, and manufacturing industries. It also provides services like pump repair and inventory management to help customers keep their operations running.

DXP makes money by buying industrial products from manufacturers and reselling them at a markup, while also charging for technical services and supply chain management programs. The company operates primarily in the United States, with most of its business tied to energy-heavy regions like Texas and the Gulf Coast. Its deep relationships with customers in the oil and gas sector give it a degree of loyalty, but that same concentration is a key risk — when energy markets slow down, DXP's revenue tends to follow. Growing its service-based revenue and expanding into less cyclical industries are the main ways the company is trying to reduce that exposure.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+15.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+23.3% YoY

YoY Growth Rate

Steady EPS growth

Insider Activity

17.5%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$227M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

DXP Enterprises is a rare growth stock that's already generating positive cash flow while growing at 16%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

31.8%

Modest — 31.8% gross margin

Profit after running costs

Operating Margin

9.6%

Modest — 9.6% operating margin

Return on the money invested

ROCE

30.3%

Exceptional — 30.3% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+11.5%

Steady sales growth (+11.5% YoY)

Profit growth

EPS YoY

+8.3%

Earnings growing (+8.3% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

176%

Turns 176% of profit into real cash

Spare cash per sale

FCF Margin

6.8%

Modest free cash flow (6.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.15

Conservative — low debt load (0.15)

Covers its interest

Interest Cover

2.94x

Tight — interest eats into profit (2.9x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

31.9x

no trend

Pricey — P/E 31.9

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+10.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (31.9 → 21.7)

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Dividends

Not applicable for this business.

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