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DXP EnterprisesFRA:DX7 +1.33%66 Operating Margin % is 9.63% as of Jun. 2026, which is 71% above its 10-year median of 5.62. 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 159 Industrial Distribution companies, DXP Enterprises ranks better than 75.47% on this metric.
DXP Enterprises Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for DXP Enterprises's Operating Margin % or its related term are showing as below:
FRA:DX7'
s Operating Margin % Range Over the Past 10 Years
Min: 2.01 Med: 5.62 Max: 8.8
Current: 8.8
FRA:DX7's Operating Margin % is ranked better than 75.47% of 159
companies
in the Industrial Distribution industry
Industry Median: 4.56
vs FRA:DX7: 8.80
DXP Enterprises's 5-Year Average Operating Margin % Growth Rate was 24.60% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
DXP Enterprises Operating Margin % Related Terms
DXP Enterprises Operating Margin % Historical Data
* Premium members only.
The historical data trend for DXP Enterprises's Operating Margin % 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.
FRA:DX7 vs DNOW, DSGR, GIC: Operating Margin % Comparison
For the Industrial Distribution subindustry, DXP Enterprises's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, DXP Enterprises's Operating Margin % distribution charts can be found below:
* The bar in red indicates where DXP Enterprises's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
DXP Enterprises's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 9.63% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on DXP Enterprises and its competitors. This is 71% above median its historical median of 5.62. Over the past decade, DXP Enterprises' Operating Margin % has ranged from 2.01 to 8.80. According to the industry distribution chart, DXP Enterprises ranks #39 out of 159 companies in the Industrial Distribution industry, placing it in the top 24.5%.
Is DXP Enterprises' Operating Margin % too high?
DXP Enterprises' current Operating Margin % of 9.63% is 71% above median its 10-year median of 5.62. Over the past 10 years, this metric has ranged from a low of 2.01 to a high of 8.80. The Industrial Distribution industry median Operating Margin % is 4.56. DXP Enterprises' value of 9.63% is 111.2% above this industry median. Based on the distribution chart, DXP Enterprises ranks #39 out of 159 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. 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' Operating Margin % compare to DNOW and DSGR?
According to the Industrial Distribution industry distribution chart, DXP Enterprises ranks #39 out of 159 companies for Operating Margin %. This places DXP Enterprises in the top 25% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.56. DXP Enterprises' value of 9.63% is 111.2% above this benchmark. Historically, DXP Enterprises' own Operating Margin % has ranged from 2.01 to 8.80 over the past decade. While the company's 10-year median is 5.62 vs. the industry median of 4.56, DXP Enterprises has consistently been above 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 Operating Margin % for an Industrial Distribution company?
The median Operating Margin % among Industrial Distribution companies is 4.56, based on 159 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DXP Enterprises's current Operating Margin % of 9.63% is 111.2% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on DXP Enterprises and its competitors. For the Industrial Distribution industry, the median Operating Margin % is 4.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DXP Enterprises's current Operating Margin % is 9.63%, which is 71% above median its own 10-year median of 5.62. 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 Operating Margin % is 9.63%, which is 71% above median its 10-year median of 5.62 and 111.2% above the Industrial Distribution industry median of 4.56. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For DXP Enterprises (FRA:DX7), the current Operating Margin % is 9.63% 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:
Operating Margin %: 9.63% (71% above median its 10-year median of 5.62)
GF Value™: €83.16 vs. price of €167.00 (100.8% above fair value)
Industry Position: 111.2% above the Industrial Distribution median (#39 of 159)
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
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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