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DXP EnterprisesFRA:DX7 +1.33%66 Pretax Margin % is 6.89% as of Jun. 2026, which is 71% above its 10-year median of 4.04. GuruFocus rates FRA:DX7 with a GF Score™ of 66/100 and a GF Value™ of €84.20 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 159 Industrial Distribution companies, DXP Enterprises ranks better than 61.01% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
DXP Enterprises Pretax Margin % Related Terms
DXP Enterprises Pretax Margin % Historical Data
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The historical data trend for DXP Enterprises's Pretax 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: Pretax Margin % Comparison
For the Industrial Distribution subindustry, DXP Enterprises's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, DXP Enterprises's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where DXP Enterprises's Pretax Margin % falls into.
* 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 Pretax Margin % of 6.89% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on DXP Enterprises and its competitors. This is 71% above median its historical median of 4.04. According to the industry distribution chart, DXP Enterprises ranks #62 out of 159 companies in the Industrial Distribution industry, placing it in the top 39%.
Is DXP Enterprises' Pretax Margin % too high?
DXP Enterprises' current Pretax Margin % of 6.89% is 71% above median its 10-year median of 4.04. The Industrial Distribution industry median Pretax Margin % is 4.15. DXP Enterprises' value of 6.89% is 66% above this industry median. Based on the distribution chart, DXP Enterprises ranks #62 out of 159 companies in the Industrial Distribution industry, which is above 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' Pretax Margin % compare to DNOW and DSGR?
According to the Industrial Distribution industry distribution chart, DXP Enterprises ranks #62 out of 159 companies for Pretax Margin %. This puts DXP Enterprises in the upper half of its industry. The industry median Pretax Margin % is 4.15. DXP Enterprises' value of 6.89% is 66% above this benchmark. While the company's 10-year median is 4.04 vs. the industry median of 4.15, 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 Pretax Margin % for an Industrial Distribution company?
The median Pretax Margin % among Industrial Distribution companies is 4.15, based on 159 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DXP Enterprises's current Pretax Margin % of 6.89% is 66% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on DXP Enterprises and its competitors. For the Industrial Distribution industry, the median Pretax Margin % is 4.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DXP Enterprises's current Pretax Margin % is 6.89%, which is 71% above median its own 10-year median of 4.04. 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 €84.20, compared to a current price of €167.00 — trading 98.3% above its estimated fair value. The current Pretax Margin % is 6.89%, which is 71% above median its 10-year median of 4.04 and 66% above the Industrial Distribution industry median of 4.15. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For DXP Enterprises (FRA:DX7), the current Pretax Margin % is 6.89% 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 98.3% above its estimated GF Value™ of €84.20.
GuruFocus considers DXP Enterprises to be Significantly Overvalued.
Key valuation signals for FRA:DX7:
Pretax Margin %: 6.89% (71% above median its 10-year median of 4.04)
GF Value™: €84.20 vs. price of €167.00 (98.3% above fair value)
Industry Position: 66% above the Industrial Distribution median (#62 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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