Dxp Enterprise Beneish M Score

DXPE
 Stock
  

USD 25.19  0.98  3.74%   

This module uses fundamental data of Dxp Enterprise to approximate the value of its Beneish M Score. Dxp Enterprise M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to Dxp Enterprise Piotroski F Score and Dxp Enterprise Altman Z Score analysis.
  
Dxp Enterprise Long Term Debt to Equity is projected to slightly decrease based on the last few years of reporting. The past year's Long Term Debt to Equity was at 0.88. The current year Debt to Equity Ratio is expected to grow to 1.05, whereas Debt Non Current is forecasted to decline to about 335 M. Dxp Enterprise Long Term Debt to Equity is projected to slightly decrease based on the last few years of reporting. The past year's Long Term Debt to Equity was at 0.88. The current year Calculated Tax Rate is expected to grow to 27.05, whereas Accounts Payable Turnover is forecasted to decline to 13.42.
At this time, it appears that Dxp Enterprise is an unlikely manipulator. The earnings manipulation may begin if Dxp Enterprise's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Dxp Enterprise executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Dxp Enterprise's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.88
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.08Focus
Asset QualityN/AFocus
Expense Coverage1.12Focus
Gross Margin Strengs1.08Focus
Accruals Factor1.12Focus
Depreciation Resistance0.88Focus
Net Sales Growth0.94Focus
Financial Leverage Condition1.06Focus

Dxp Enterprise Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Dxp Enterprise's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense303 M288.6 M
Sufficiently Up
Increasing
Slightly volatile
RevenuesB1.1 B
Notably Down
Increasing
Stable
Trade and Non Trade Receivables238.7 M235.3 M
Fairly Up
Increasing
Slightly volatile
Property Plant and Equipment Net98.9 M109.1 M
Moderately Down
Increasing
Slightly volatile
Operating Income42.4 M39.9 M
Notably Up
Decreasing
Stable
Net Cash Flow from Operations42.8 M37.1 M
Fairly Up
Increasing
Very volatile
Liabilities Non Current347.2 M366.4 M
Notably Down
Increasing
Slightly volatile
Current Liabilities158.5 M181.1 M
Fairly Down
Increasing
Slightly volatile
Total Liabilities458.5 M547.6 M
Fairly Down
Increasing
Slightly volatile
Gross Margin31.9329.491
Significantly Up
Increasing
Very volatile
Depreciation Amortization and Accretion28.9 M27.1 M
Notably Up
Increasing
Slightly volatile
Debt Non Current335 M355.3 M
Notably Down
Increasing
Slightly volatile
Debt Current22.6 M21.5 M
Sufficiently Up
Decreasing
Slightly volatile
Total Debt361.8 M376.8 M
Sufficiently Down
Increasing
Slightly volatile
Assets Non Current463.3 M489.7 M
Notably Down
Increasing
Slightly volatile
Current Assets350.3 M404.6 M
Fairly Down
Increasing
Slightly volatile
Total Assets756.1 M906.2 M
Fairly Down
Increasing
Slightly volatile

Dxp Enterprise Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Dxp Enterprise's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Dxp Enterprise in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Dxp Enterprise's degree of accounting gimmicks and manipulations.

About Dxp Enterprise Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

28.87 Million

Dxp Enterprise Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 27.14 Million

Dxp Enterprise Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Dxp Enterprise. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues1.01 B1.22 B1.27 B1.01 B1.11 B1.05 B
Total Assets639.08 M699.96 M788.22 M851.86 M906.19 M756.11 M
Current Assets317.92 M385.59 M408.48 M406.58 M404.57 M350.25 M
Assets Non Current321.17 M314.37 M379.74 M458.71 M489.65 M463.29 M
Total Liabilities371.1 M393.11 M444.42 M504.79 M547.55 M458.52 M
Current Liabilities124.83 M143.28 M148.17 M144.14 M181.06 M158.45 M
Total Debt242.02 M240.39 M304.13 M374.34 M376.82 M361.76 M
Debt Current3.38 M3.41 M20.1 M19.19 M21.5 M22.57 M
Debt Non Current238.64 M236.98 M284.02 M355.15 M355.32 M334.97 M
Operating Income33.49 M68.45 M66.12 M(26.87 M)39.86 M42.39 M
Gross Margin26.9827.3227.427.7829.4931.93

About Dxp Enterprise Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Dxp Enterprise's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Dxp Enterprise using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Dxp Enterprise based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
DXP Enterprises, Inc., together with its subsidiaries, engages in distributing maintenance, repair, and operating products, equipment, and services to the energy and industrial customers primarily in the United States and Canada. The company was founded in 1908 and is based in Houston, Texas. Dxp Enterprise operates under Industrial Distribution classification in the United States and is traded on NASDAQ Exchange. It employs 2490 people.

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Our tools can tell you how much better you can do entering a position in Dxp Enterprise without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Dxp Enterprise

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dxp Enterprise position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dxp Enterprise will appreciate offsetting losses from the drop in the long position's value.

Moving together with Dxp Enterprise

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The ability to find closely correlated positions to Dxp Enterprise could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dxp Enterprise when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dxp Enterprise - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dxp Enterprise to buy it.
The correlation of Dxp Enterprise is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dxp Enterprise moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dxp Enterprise moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dxp Enterprise can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Dxp Enterprise Piotroski F Score and Dxp Enterprise Altman Z Score analysis. You can also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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Is Dxp Enterprise's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dxp Enterprise. If investors know Dxp Enterprise will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dxp Enterprise listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.94
Market Capitalization
491.1 M
Quarterly Revenue Growth YOY
0.34
Return On Assets
0.0534
Return On Equity
0.11
The market value of Dxp Enterprise is measured differently than its book value, which is the value of Dxp Enterprise that is recorded on the company's balance sheet. Investors also form their own opinion of Dxp Enterprise's value that differs from its market value or its book value, called intrinsic value, which is Dxp Enterprise's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dxp Enterprise's market value can be influenced by many factors that don't directly affect Dxp Enterprise's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dxp Enterprise's value and its price as these two are different measures arrived at by different means. Investors typically determine Dxp Enterprise value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dxp Enterprise's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.