DXP Enterprises Net Income vs. Operating Margin
| DXPE Stock | USD 50.15 0.33 0.65% |
Net Income | First Reported 1997-03-31 | Previous Quarter 16.2 M | Current Value 16 M | Quarterly Volatility 17.4 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.22 | 0.301 |
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For DXP Enterprises profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DXP Enterprises to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DXP Enterprises utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DXP Enterprises's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DXP Enterprises over time as well as its relative position and ranking within its peers.
DXP |
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 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 1.535 | Earnings Share 3.89 | Revenue Per Share 99.502 | Quarterly Revenue Growth 0.002 | Return On Assets 0.0786 |
The market value of DXP Enterprises is measured differently than its book value, which is the value of DXP 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 if DXP Enterprises is a good investment 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.
DXP Enterprises Operating Margin vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining DXP Enterprises's current stock value. Our valuation model uses many indicators to compare DXP Enterprises value to that of its competitors to determine the firm's financial worth. DXP Enterprises is rated below average in net income category among related companies. It is rated below average in operating margin category among related companies . The ratio of Net Income to Operating Margin for DXP Enterprises is about 927,385,445 . At present, DXP Enterprises' Net Income is projected to increase significantly based on the last few years of reporting.Comparative valuation analysis is a catch-all model that can be used if you cannot value DXP Enterprises by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for DXP Enterprises' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the DXP Enterprises' earnings, one of the primary drivers of an investment's value.DXP Operating Margin vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
DXP Enterprises |
| = | 68.81 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
DXP Enterprises |
| = | 0.07 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
DXP Operating Margin Comparison
DXP Enterprises is currently under evaluation in operating margin category among related companies.
DXP Enterprises Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in DXP Enterprises, profitability is also one of the essential criteria for including it into their portfolios because, without profit, DXP Enterprises will eventually generate negative long term returns. The profitability progress is the general direction of DXP Enterprises' change in net profit over the period of time. It can combine multiple indicators of DXP Enterprises, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -31.2 M | -29.7 M | |
| Operating Income | 139.3 M | 146.3 M | |
| Income Before Tax | 86.9 M | 91.3 M | |
| Total Other Income Expense Net | -52.4 M | -49.8 M | |
| Net Income | 68.8 M | 72.3 M | |
| Income Tax Expense | 18.1 M | 19 M | |
| Net Income Applicable To Common Shares | 55.3 M | 58 M | |
| Net Income From Continuing Ops | 60.8 M | 63.9 M | |
| Non Operating Income Net Other | -2.4 M | -2.3 M | |
| Interest Income | 22.4 M | 18.5 M | |
| Net Interest Income | -47.6 M | -45.2 M | |
| Change To Netincome | -1.4 M | -1.3 M | |
| Net Income Per Share | 4.08 | 4.28 | |
| Income Quality | 1.54 | 1.62 | |
| Net Income Per E B T | 0.79 | 0.54 |
DXP Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on DXP Enterprises. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of DXP Enterprises position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the DXP Enterprises' important profitability drivers and their relationship over time.
Use DXP Enterprises in pair-trading
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.DXP Enterprises Pair Trading
DXP Enterprises Pair Trading Analysis
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 instruments. 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.Use Investing Themes to Complement your DXP Enterprises position
In addition to having DXP Enterprises in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Investing Opportunities. For information on how to trade DXP Stock refer to our How to Trade DXP Stock guide.You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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When running DXP Enterprises' price analysis, check to measure DXP Enterprises' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy DXP Enterprises is operating at the current time. Most of DXP Enterprises' value examination focuses on studying past and present price action to predict the probability of DXP Enterprises' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move DXP Enterprises' price. Additionally, you may evaluate how the addition of DXP Enterprises to your portfolios can decrease your overall portfolio volatility.
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To fully project DXP Enterprises' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DXP Enterprises at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include DXP Enterprises' income statement, its balance sheet, and the statement of cash flows.