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Dxp Enterprises Inc   (NASDAQ: DXPE)
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Price: $102.2700 $4.29 4.378%
Day's High: $102.53 Week Perf: -0.17 %
Day's Low: $ 97.25 30 Day Perf: 3.77 %
Volume (M): 214 52 Wk High: $ 107.06
Volume (M$): $ 21,845 52 Wk Avg: $59.00
Open: $97.99 52 Wk Low: $33.62



 Market Capitalization (Millions $) 1,697
 Shares Outstanding (Millions) 17
 Employees 2,837
 Revenues (TTM) (Millions $) 1,736
 Net Income (TTM) (Millions $) 65
 Cash Flow (TTM) (Millions $) 8
 Capital Exp. (TTM) (Millions $) 21

Dxp Enterprises Inc
DXP was incorporated in Texas in 1996 to be the successor to SEPCO Industries, Inc., founded in 1908. Since our predecessor company was founded, we have primarily been engaged in the business of distributing maintenance, repair and operating (MRO) products, equipment and service to industrial customers. The Company is organized into three business segments: Service Centers, Supply Chain Services and Innovative Pumping Solutions.
The industrial distribution market is highly fragmented. Based on 2014 sales as reported by Industrial Distribution magazine, we were the 20th largest distributor of MRO products in the United States. Most industrial customers currently purchase their industrial supplies through numerous local distribution and supply companies. These distributors generally provide the customer with repair and maintenance services, technical support and application expertise with respect to one product category. Products typically are purchased by the distributor for resale directly from the manufacturer and warehoused at distribution facilities of the distributor until sold to the customer. The customer also typically will purchase an amount of product inventory for its near term anticipated needs and store those products at its industrial site until the products are used.

We believe that the distribution system for industrial products, as described in the preceding paragraph, creates inefficiencies at both the customer and the distributor levels through excess inventory requirements and duplicative cost structures. To compete more effectively, our customers and other users of MRO products are seeking ways to enhance efficiencies and lower MRO product and procurement costs. In response to this customer desire, three primary trends have emerged in the industrial supply industry:

· Industry Consolidation. Industrial customers have reduced the number of supplier relationships they maintain to lower total purchasing costs, improve inventory management, assure consistently high levels of customer service and enhance purchasing power. This focus on fewer suppliers has led to consolidation within the fragmented industrial distribution industry.

· Customized Integrated Service. As industrial customers focus on their core manufacturing or other production competencies, they increasingly are demanding customized integration services, consisting of value-added traditional distribution, supply chain services, modular equipment and repair and maintenance services

· Single Source, First-Tier Distribution. As industrial customers continue to address cost containment, there is a trend toward reducing the number of suppliers and eliminating multiple tiers of distribution. Therefore, to lower overall costs to the customer, some MRO product distributors are expanding their product coverage to eliminate second-tier distributors and become a “one stop source”.

We believe we have increased our competitive advantage through our traditional fabrication of integrated system pump packages and integrated supply programs, which are designed to address our customers’ specific product and procurement needs. We offer our customers various options for the integration of their supply needs, ranging from serving as a single source of supply for all or specific lines of products and product categories to offering a fully integrated supply package in which we assume procurement and management functions, which can include ownership of inventory, at the customers location. Our approach to integrated supply allows us to design a program that best fits the needs of the customer. Customers purchasing large quantities of product are able to outsource all or most of those needs to us. For customers with smaller supply needs, we are able to combine our traditional distribution capabilities with our broad product categories and advanced ordering systems to allow the customer to engage in one-stop sourcing without the commitment required under an integrated supply contract.

Most industrial customers currently purchase their MRO products through local or national distribution companies that are focused on single or unique product categories. As a first-tier distributor, our network of service and distribution centers stock more than 60,000 SKUs and provide customers with access to more than 1,000,000 items. Given our breadth of product and our industrial distribution customers’ focus around specific product categories, we have become customer driven experts in five key product categories. As such, our three business segments are supported by the following five key product categories: rotating equipment, bearings & power transmission, industrial supplies, metal working and safety products & services. Each business segment tailors its inventory and leverages product experts to meet the needs of its local customers.

Key product categories that we offer include:

· Rotating Equipment. Our rotating equipment products include a full line of centrifugal pumps for transfer and process service applications, such as petrochemicals, refining and crude oil production; rotary gear pumps for low- to- medium pressure service applications, such as pumping lubricating oils and other viscous liquids; plunger and piston pumps for high-pressure service applications such as disposal of produced water and crude oil pipeline service; and air-operated diaphragm pumps. We also provide a large variety of pump accessories.

· Bearings & Power Transmission. Our bearing products include several types of mounted and un-mounted bearings for a variety of applications. The power transmission products we distribute include speed reducers, flexible-coupling drives, chain drives, sprockets, gears, conveyors, clutches, brakes and hoses.

· Industrial Supplies. We offer a broad range of industrial supplies, such as abrasives, tapes and adhesive products, coatings and lubricants, fasteners, hand tools, janitorial products, pneumatic tools, welding supplies and welding equipment.

· Metal Working. Our metal working products include a broad range of cutting tools, abrasives, coolants, gauges, industrial tools and machine shop supplies.

· Safety Products & Services. We sell a broad range of safety products including eye and face protection, first aid, hand protection, hazardous material handling, instrumentation and respiratory protection products. Additionally, we provide safety services including hydrogen sulfide (H2S) gas protection and safety, specialized and standby fire protection, safety supervision, training, monitoring, equipment rental and consulting. Our safety services include safety supervision, medic services, safety audits, instrument repair and calibration, training, monitoring, equipment rental and consulting.

We acquire our products through numerous OEMs. We are authorized to distribute certain manufacturers products only in specific geographic areas. All of our oral or written distribution authorizations are subject to cancellation by the manufacturer, some upon little or no notice. For the last three fiscal years, no manufacturer provided products that accounted for 10% or more of our revenues. We believe that alternative sources of supply could be obtained in a timely manner if any distribution authorization were canceled. Accordingly, we do not believe that the loss of any one distribution authorization would have a material adverse effect on our business, financial condition or results of operations.



   Company Address: 5301 Hollister Houston 77040 TX
   Company Phone Number: 996-4700   Stock Exchange / Ticker: NASDAQ DXPE


   

Stock Performances by Major Competitors

5 Days Decrease / Increase
     
MRC        5.82% 
DNOW        22.28% 
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Business Update

Title': DXP Enterprises Harnesses Debt Refinancing to Outpace Competitors Amid Challenging Market Conditions
:

In a strategic move indicative of its growth ambitions, DXP Enterprises, Inc. (NASDAQ: DXPE) recently announced the completion of refinancing its Senior Secured Term Loan B (TLB) borrowings and the addition of an incremental $105 million to this facility. With a total borrowing of $649.5 million now secured under this
financial arrangement, DXP is poised to capitalize on emerging opportunities while fortifying its financial stability. This refinancing, which matures on October 13, 2030, is priced at an attractive Term SOFR plus an applicable margin of 3.75 percent, a favorable rate that reflects the company's creditworthiness in current market conditions.

Notably, DXP?s revenue performance stands out in the second quarter of 2024, where the company reported a year-on-year revenue increase of 3.96%. This rate of growth starkly contrasts with the broader trend observed in the industry, where most competitors experienced a contraction in revenues averaging -1.7%. Such a divergence not only underscores DXP's resilience but also highlights its ability to maintain a competitive edge in a challenging market landscape.

Despite this positive revenue growth, it's essential to note that DXP's net income for the same period witnessed a decline of -12.39%. This downturn is especially significant given that many of its competitors reported an income growth of approximately 8.45%. The juxtaposition between revenue growth and net income decline raises questions about the company's cost structure, operational efficiency, and potentially increasing expenses that could be hindering profitability.

ly, DXP Enterprises achieved a net margin of 3.75%, which, while lower than desired, remains higher than many of its peers. This enhanced profitability position illustrates that despite the headwinds faced in net income growth, the company is effectively leveraging its operational capabilities to generate stronger margins than its competitors.

The implications of these findings for DXP Enterprises are multifaceted. The refinancing of debt not only provides immediate liquidity for growth initiatives but also serves as a confidence signal to investors regarding the company?s commitment to managing its financial obligations prudently. Balancing this with a solid revenue trajectory will be crucial as DXP navigates potential challenges ahead, particularly in translating its revenue gains into increased profitability.

In conclusion, while DXP Enterprises finds itself in a favorable position with respect to revenue growth and debt management, its ability to boost net income will be vital for sustaining investor confidence and fostering long-term growth. As it continues to refine its operational strategies, stakeholders will be keenly observing how effectively DXP can turn its financial maneuvers into tangible improvements in profitability.,

Published Wed, Oct 9 2024 5:52 AM UTC

Title : DXP Enterprises Harnesses Debt Refinancing to Outpace Competitors Amid Challenging Market Conditions:In a strategic move indicative of its growth ambitions, DXP Enterprises, Inc. (NASDAQ: DXPE) recently announced the completion of refinancing its Senior Secured Term Loan B (TLB) borrowings and the addition of an incremental $105 million to this facility. With a total...

Business Update

DXP Enterprises Strengthens Financial Position with Debt Refinancing and New Capital Injection

Published Tue, Oct 8 2024 8:39 PM UTC

DXP Enterprises, Inc. (NASDAQ: DXPE), a leading distributor of products and services to a wide array of industries, has made a strategic financial maneuver aimed at supporting its long-term growth s and enhancing its capital structure. On date, the Houston-based company announced the successful refinancing of its existing debt and the securing of an additional $105 million t...

Dxp Enterprises Inc

Demand Surge Fails to Boost Income: Dxp Enterprises Inc Faces Financial Challenges in Q2 2024

DXP Enterprises Inc: A Comprehensive Analysis of Recent Financial Performance and Strategic Acquisitions

DXP Enterprises, Inc. (NASDAQ: DXPE) is a Houston-based distributor of maintenance, repair, and operations (MRO) products and services, dedicated to delivering value and cost-saving solutions to original equipment manufacturers (OEMs) across a multitude of industries. As of June 30, 2024, the company has reported a mixed financial performance characterized by a notable revenue increase, coupled with a decline in earnings per share (EPS). This report will delve into the recent financial results, operational challenges, and strategic acquisitions that are shaping the future trajectory of DXP Enterprises.
Financial Performance Overview
In its second quarter earnings report ending June 30, 2024, DXP Enterprises revealed a revenue increase of 3.96%, reaching $444.79 million compared to $427.85 million for the same period last year. Despite this growth, the company reported a decline in earnings per share, which fell by 5.66% to $1.00 from $1.06 in Q2 2023. The decline in profitability was mirrored by a drop in net income, which decreased by -12.39% from $19.054 million to $16.693 million.

Dxp Enterprises Inc

Company's First Quarter Performance Falls Short of Expectations, Raises Concerns

DXP Enterprises, Inc. recently announced a contraction in earnings per share (EPS) by -29.47% to $0.67 and a decrease in revenue by -2.919% to $411.88 million in the first quarter of 2024 compared to the same period in the previous year. However, when compared to the prior reporting period, income decreased from $0.99 per share while revenue saw a slight increase of 1.048% from $407.61 million.
The bottom-line for the first quarter of 2024 was $11.332 million, which represents a decline of -35.54% from $17.580 million in the corresponding period of the previous year. This decline in profitability raises concerns about the company's performance in the first quarter.

Dxp Enterprises Inc

DXP Enterprises Inc. Sees Strong Bottom-Line Growth Despite Slow Revenue Growth in Fiscal Year 2023

The latest financial results of DXP Enterprises Inc. have shown a mixed performance, with strong bottom-line growth but slow revenue growth. Despite the modest increase in revenue of 0.324%, the company delivered rapid growth in income per share, which rose by an impressive 168.6% to $0.99 per share.
Comparing these results to the previous year, there was an improvement of 6.37% in income per share from $0.93 to $0.99. However, revenue decreased by -2.617% from $418.56 million to $407.61 million. It is worth noting that earnings also witnessed substantial growth, increasing by 99.18% to $16.006 million from $8.036 million in the previous year.







Dxp Enterprises Inc's Segments
Service Centers    67.11 % of total Revenue
Innovative Pumping Solutions    19.03 % of total Revenue
Supply Chain Services    14.04 % of total Revenue





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