DXP Enterprises Piotroski F Score

DXPE
 Stock
  

USD 25.18  0.58  2.25%   

This module uses fundamental data of DXP Enterprises to approximate its Piotroski F score. DXP Enterprises F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of DXP Enterprises. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about DXP Enterprises financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Continue to DXP Enterprises Altman Z Score, DXP Enterprises Correlation, DXP Enterprises Valuation, as well as analyze DXP Enterprises Alpha and Beta and DXP Enterprises Hype Analysis.
  
DXP Enterprises 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 Enterprises 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 Enterprises' Piotroski F Score is Strong. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
7.0
Piotroski F Score - Strong
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsIncreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)DecreasingFocus
5
Asset Turnover GrowthIncreaseFocus
6
Current Ratio ChangeDecreaseFocus
7
Long Term Debt Over Assets ChangeLower LeverageFocus
8
Change In Outstending SharesDecreaseFocus
9
Change in Gross MarginIncreaseFocus

DXP Enterprises Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to DXP Enterprises is to make sure DXP Enterprises is not a subject of accounting manipulations and runs a healthy internal audit department. So, if DXP Enterprises' 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. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if DXP Enterprises' financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares Diluted17.4 M19.8 M
Fairly Down
Increasing
Slightly volatile
Weighted Average Shares16.6 M18.9 M
Fairly Down
Increasing
Slightly volatile
Return on Average Assets2.771.8766
Way Up
Decreasing
Slightly volatile
Net Cash Flow from Operations42.8 M37.1 M
Fairly Up
Increasing
Very 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
Total Debt361.8 M376.8 M
Sufficiently Down
Increasing
Slightly volatile
Asset Turnover1.71.2672
Significantly Up
Decreasing
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 Enterprises F 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 project the various growth rates. Understanding the correlation between DXP Enterprises' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards DXP Enterprises in a much-optimized way.

About DXP Enterprises Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Book Value per Share

19.34

DXP Enterprises Book Value per Share is projected to increase based on the last few years of reporting. The past year's Book Value per Share was at 18.30

DXP Enterprises Current Valuation Drivers

We derive many important indicators used in calculating different scores of DXP Enterprises from analyzing DXP Enterprises' financial statements. These drivers represent accounts that assess DXP Enterprises' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of DXP Enterprises' important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee6.73 K22.61 K22.72 K(11.23 K)6.62 K7.49 K
Revenue Per Employee400.95 K771.7 K798.98 K393.14 K447.36 K436.5 K
Average Assets622.99 M675.9 M785.61 M794.92 M897.69 M874.35 M
Earnings Before Interest Taxes and Depreciation Amortization EBITDA61.71 M95.83 M91.34 M(4.26 M)67.37 M70.49 M
Earnings Before Interest Taxes and Depreciation Amortization USD62.09 M99.55 M92.89 M(4.71 M)68.16 M62.61 M
Earnings before Tax17.25 M52.45 M48.22 M(47.97 M)19.93 M20.74 M
Average Equity259.89 M290.57 M334.81 M347.73 M355.84 M340.46 M
Enterprise Value733.6 M713.59 M977.62 M568.35 M791.1 M796.52 M
Free Cash Flow9.73 M29.07 M19.22 M103.1 M32.76 M38.14 M
Invested Capital464.59 M495.29 M652.93 M634.06 M665.16 M647.12 M
Invested Capital Average338.96 M494.28 M653.87 M604.54 M643.04 M628.75 M
Market Capitalization514.28 M489.16 M700.79 M395.49 M481.33 M522.45 M
Tangible Asset Value372.97 M438.7 M542.45 M526.28 M518.48 M512.4 M
Working Capital193.09 M242.31 M270.02 M262.29 M223.51 M224.02 M

About DXP Enterprises Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze DXP Enterprises's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of DXP Enterprises using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of DXP Enterprises 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.

Be your own money manager

Our tools can tell you how much better you can do entering a position in DXP Enterprises 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 Enterprises

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 Enterprises 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 Enterprises will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to DXP Enterprises 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 Enterprises 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 Enterprises - 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 Enterprises to buy it.
The correlation of DXP Enterprises 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 Enterprises moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DXP Enterprises 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 Enterprises 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 Enterprises Altman Z Score, DXP Enterprises Correlation, DXP Enterprises Valuation, as well as analyze DXP Enterprises Alpha and Beta and DXP Enterprises Hype Analysis. You can also try Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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Is DXP Enterprises' 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 Enterprises. If investors know DXP Enterprises 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 Enterprises 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
0.944
Market Capitalization
483.4 M
Quarterly Revenue Growth YOY
0.338
Return On Assets
0.0534
Return On Equity
0.1092
The market value of DXP Enterprises is measured differently than its book value, which is the value of DXP Enterprises that is recorded on the company's balance sheet. Investors also form their own opinion of DXP Enterprises' value that differs from its market value or its book value, called intrinsic value, which is DXP Enterprises' 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 Enterprises' market value can be influenced by many factors that don't directly affect DXP Enterprises' 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 Enterprises' value and its price as these two are different measures arrived at by different means. Investors typically determine DXP Enterprises value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DXP Enterprises' 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.