DXP Enterprises (FRA:DX7) Financial Strength: 5 (As of Jun. 2026) — Near Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:DX7 DXP Enterprises Inc FRA:DX7
66 GF Score
Price €167.00
GF Value €84.41
Valuation Significantly Overvalued
! 5 Warning Signs
View Full Analysis

What is DXP Enterprises Financial Strength?

DXP Enterprises FRA:DX7 +1.33% 66 Financial Strength is 5 as of Jun. 2026, which is at its 10-year median of 5.00. GuruFocus rates FRA:DX7 with a GF Score™ of 66/100 and a GF Value™ of €84.41 (Significantly Overvalued). The stock has 5 warning signs investors should review.

DXP Enterprises has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

DXP Enterprises's Interest Coverage for the quarter that ended in Jun. 2026 was 3.30. DXP Enterprises's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.39. As of today, DXP Enterprises's Altman Z-Score is 3.87.


DXP Enterprises  (FRA:DX7) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

DXP Enterprises has the Financial Strength Rank of 5.


DXP Enterprises Financial Strength Related Terms


FRA:DX7 vs DNOW, DSGR, GIC: Financial Strength Comparison

For the Industrial Distribution subindustry, DXP Enterprises's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, DXP Enterprises's Financial Strength distribution charts can be found below:

* The bar in red indicates where DXP Enterprises's Financial Strength falls into.


FRA:DX7
66GF Score
DXP Enterprises Inc FRA:DX7
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

DXP Enterprises Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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:

DXP Enterprises's Interest Expense for the months ended in Jun. 2026 was €-15 Mil. Its Operating Income for the months ended in Jun. 2026 was €48 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €756 Mil.

DXP Enterprises's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*48.168/-14.609
=3.30

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

DXP Enterprises's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(24.393 + 755.94) / 2001.472
=0.39

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

DXP Enterprises has a Z-score of 3.87, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.87 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 5 mean?
DXP Enterprises (FRA:DX7) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on DXP Enterprises and its competitors. This is near median its historical median of 5.00. Over the past decade, DXP Enterprises' Financial Strength has ranged from 4.00 to 7.00.
Is DXP Enterprises' Financial Strength too high?
DXP Enterprises' current Financial Strength of 5 is near median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 7.00. 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' Financial Strength compare to DNOW and DSGR?
DXP Enterprises' Financial Strength of 5 can be compared against companies in the Industrial Distribution industry. Historically, DXP Enterprises' own Financial Strength has ranged from 4.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Industrial Distribution company?
A good Financial Strength depends on the Industrial Distribution industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on DXP Enterprises and its competitors. DXP Enterprises's current Financial Strength is 5, which is near median its own 10-year median of 5.00. 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 €84.41, compared to a current price of €167.00 — trading 97.8% above its estimated fair value. The current Financial Strength is 5, which is near median its 10-year median of 5.00. 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 Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For DXP Enterprises (FRA:DX7), the current Financial Strength is 5 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 97.8% above its estimated GF Value™ of €84.41. GuruFocus considers DXP Enterprises to be Significantly Overvalued.

Key valuation signals for FRA:DX7:

  • Financial Strength: 5 (near median its 10-year median of 5.00)
  • GF Value™: €84.41 vs. price of €167.00 (97.8% above fair value)
  • GF Score™: 66/100 with 5 warning signs

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 Business Description

Other Exchanges DXPE:USA
Address 5301 Hollister, Houston, TX, USA, 77040
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

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€167.00
Price
€84.41
GF Value