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DXP EnterprisesFRA:DX7 +1.33%66 Interest Coverage is 3.30 as of Jun. 2026, which is 35% above its 10-year median of 2.44. GuruFocus rates FRA:DX7 with a GF Score™ of 66/100 and a GF Value™ of €83.16 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 134 Industrial Distribution companies, DXP Enterprises ranks worse than 72.39% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. DXP Enterprises's
Operating Income
for the
three
months ended in Jun. 2026 was €48 Mil. DXP Enterprises's Interest Expense for the
three
months ended in Jun. 2026 was €-15 Mil.
DXP Enterprises's interest coverage for the quarter that ended in Jun. 2026 was 3.30.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for DXP Enterprises's Interest Coverage or its related term are showing as below:
FRA:DX7'
s Interest Coverage Range Over the Past 10 Years
Min: 1.24 Med: 2.44 Max: 3.46
Current: 2.92
FRA:DX7's Interest Coverage is ranked worse than 72.39% of 134
companies
in the Industrial Distribution industry
Industry Median: 7.015
vs FRA:DX7: 2.92
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
DXP Enterprises Interest Coverage Related Terms
DXP Enterprises Interest Coverage Historical Data
* Premium members only.
The historical data trend for DXP Enterprises's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:DX7 vs DNOW, DSGR, GIC: Interest Coverage Comparison
For the Industrial Distribution subindustry, DXP Enterprises's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
DXP Enterprises Interest Coverage vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, DXP Enterprises's Interest Coverage distribution charts can be found below:
* The bar in red indicates where DXP Enterprises's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DXP Enterprises (FRA:DX7) has a Interest Coverage of 3.30 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on DXP Enterprises and its competitors. This is 35% above median its historical median of 2.44. Over the past decade, DXP Enterprises' Interest Coverage has ranged from 1.24 to 3.46. According to the industry distribution chart, DXP Enterprises ranks #97 out of 134 companies in the Industrial Distribution industry, placing it in the top 72.4%.
Is DXP Enterprises' Interest Coverage too high?
DXP Enterprises' current Interest Coverage of 3.30 is 35% above median its 10-year median of 2.44. Over the past 10 years, this metric has ranged from a low of 1.24 to a high of 3.46. The Industrial Distribution industry median Interest Coverage is 7.02. DXP Enterprises' value of 3.30 is 53% below this industry median. Based on the distribution chart, DXP Enterprises ranks #97 out of 134 companies in the Industrial Distribution industry, which is below the industry midpoint. Overall, DXP Enterprises has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does DXP Enterprises' Interest Coverage compare to DNOW and DSGR?
According to the Industrial Distribution industry distribution chart, DXP Enterprises ranks #97 out of 134 companies for Interest Coverage. This places DXP Enterprises in the lower half of its industry. The industry median Interest Coverage is 7.02. DXP Enterprises' value of 3.30 is 53% below this benchmark. Historically, DXP Enterprises' own Interest Coverage has ranged from 1.24 to 3.46 over the past decade. While the company's 10-year median is 2.44 vs. the industry median of 7.02, DXP Enterprises has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Industrial Distribution company?
The median Interest Coverage among Industrial Distribution companies is 7.02, based on 134 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DXP Enterprises's current Interest Coverage of 3.30 is 53% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on DXP Enterprises and its competitors. For the Industrial Distribution industry, the median Interest Coverage is 7.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DXP Enterprises's current Interest Coverage is 3.30, which is 35% above median its own 10-year median of 2.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DXP Enterprises stock overvalued right now?
Based on GuruFocus' analysis, DXP Enterprises (FRA:DX7) is currently considered Significantly Overvalued. The stock's GF Value™ is €83.16, compared to a current price of €167.00 — trading 100.8% above its estimated fair value. The current Interest Coverage is 3.30, which is 35% above median its 10-year median of 2.44 and 53% below the Industrial Distribution industry median of 7.02. DXP Enterprises' overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For DXP Enterprises (FRA:DX7), the current Interest Coverage is 3.30 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is DXP Enterprises (FRA:DX7) Overvalued in 2026?
Based on GuruFocus' analysis, DXP Enterprises stock appears to be overvalued.
The current stock price of €167.00 is trading 100.8% above its estimated GF Value™ of €83.16.
GuruFocus considers DXP Enterprises to be Significantly Overvalued.
Key valuation signals for FRA:DX7:
Interest Coverage: 3.30 (35% above median its 10-year median of 2.44)
GF Value™: €83.16 vs. price of €167.00 (100.8% above fair value)
Industry Position: 53% below the Industrial Distribution median (#97 of 134)
No single metric tells the full story. See the FRA:DX7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DXP Enterprises Inc is engaged in the business of distributing maintenance, repair and operating (MRO) products, equipment and service to customers in various end markets, including general industrial, energy, food & beverage, chemical, transportation, water and wastewater. The company operates through three business segments: Service Centers, Innovative Pumping Solutions and Supply Chain Services. The majority of revenue is derived from the Service Centers segment, which provides a wide range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products and safety services categories. Geographically, it generates the maximum revenue from the United States.
66GF Score
Get the complete analysis for FRA:DX7
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