Despite seeing a 50% increase in DXP's share price over the past year, I believe DXP is undervalued at current levels, with a P/S of 0.72 and strong fundamentals. Management is raising EBITDA targets to 11% for FY 2025. It seems that the recent M&As are not impacting margins. That said, I'm concerned about rising intangibles and a negative tangible book value, which pressures the quality of their balance sheet.
DXPE saw a 15.7% YoY revenue growth in Q4 2024, driven by acquisitions and a 62% surge in the IPS segment. The company's adjusted EBITDA margin grew by 40 bps to 10.7%, with adjusted EPS beating estimates at $1.38. Strong demand in the IPS segment, especially in water and energy, is expected to drive growth in 2025 despite some headwinds in the SCS segment.
The latest trading day saw DXP Enterprises (DXPE) settling at $87.74, representing a -1.38% change from its previous close.
DXP Enterprises, Inc. (NASDAQ:DXPE ) Q4 2024 Earnings Conference Call March 7, 2025 11:30 AM ET Company Participants David Little - Chairman, President and Chief Executive Officer Kent Yee - Senior Vice President and Chief Financial Officer Conference Call Participants Zach Marriott - Stephens Operator Thank you for standing by. My name is Eric and I will be your conference operator today.
In the latest trading session, DXP Enterprises (DXPE) closed at $88.29, marking a -1.8% move from the previous day.
DXP Enterprises (DXPE) closed the most recent trading day at $102.91, moving -0.51% from the previous trading session.
The latest trading day saw DXP Enterprises (DXPE) settling at $101.90, representing a +0.25% change from its previous close.
DXP Enterprises (DXPE) reachead $101.65 at the closing of the latest trading day, reflecting a -0.77% change compared to its last close.
DXP Enterprises is making strides in the key end markets, which makes the stock worth a watch amid certain headwinds.
DXP Enterprises (DXPE) reachead $98.70 at the closing of the latest trading day, reflecting a +0.56% change compared to its last close.
DXP Enterprises (DXPE) reachead $98.97 at the closing of the latest trading day, reflecting a -1.89% change compared to its last close.
Does DXP Enterprises (DXPE) have what it takes to be a top stock pick for momentum investors? Let's find out.