DXP Enterprises Z Score

DXPE
 Stock
  

USD 26.00  0.13  0.50%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Continue to DXP Enterprises Piotroski F Score and DXP Enterprises Valuation analysis.
  
DXP Enterprises Market Capitalization is projected to decrease significantly based on the last few years of reporting. The past year's Market Capitalization was at 481.33 Million. The current year Working Capital is expected to grow to about 224 M, whereas Invested Capital is forecasted to decline to about 647.1 M. DXP Enterprises Net Income is projected to decrease significantly based on the last few years of reporting. The past year's Net Income was at 16.5 Million. The current year Operating Expenses is expected to grow to about 316.4 M, whereas Consolidated Income is forecasted to decline to about 13.8 M.

DXP Enterprises Z Score Analysis

DXP Enterprises' Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 2019 2020 2021 2022 (projected)
Interest Expense19.5 M20.57 M21.09 M19.19 M
Gross Profit349.79 M277.2 M328.51 M308.24 M
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current DXP Enterprises Z Score

    
  1.6  
Most of DXP Enterprises' fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, DXP Enterprises is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

DXP Enterprises Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for DXP Enterprises is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since DXP Enterprises' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of DXP Enterprises' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of DXP Enterprises' interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

According to the company's disclosures, DXP Enterprises has a Z Score of 1.6. This is 60.69% lower than that of the Trading Companies & Distributors sector and 72.6% lower than that of the Industrials industry. The z score for all United States stocks is 81.65% higher than that of the company.

DXP Enterprises Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses DXP Enterprises' direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of DXP Enterprises could also be used in its relative valuation, which is a method of valuing DXP Enterprises by comparing valuation metrics of similar companies.
DXP Enterprises is currently under evaluation in z score category among related companies.

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

DXP Enterprises Fundamentals

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.

DXP Enterprises Investors Sentiment

The influence of DXP Enterprises' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in DXP Enterprises. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to DXP Enterprises' public news can be used to forecast risks associated with investment in DXP Enterprises. The trend in average sentiment can be used to explain how an investor holding DXP Enterprises can time the market purely based on public headlines and social activities around DXP Enterprises. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
DXP Enterprises' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for DXP Enterprises' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average DXP Enterprises' news discussions. The higher the estimated score, the more favorable is the investor's outlook on DXP Enterprises.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards DXP Enterprises in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, DXP Enterprises' short interest history, or implied volatility extrapolated from DXP Enterprises options trading.

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.

Moving together with DXP Enterprises

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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 Piotroski F Score and DXP Enterprises Valuation analysis. You can also try Global Correlations module to find global opportunities by holding instruments from different markets.

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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
490.3 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.