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.
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.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. DXP Enterprises's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 11.88%.
As of today (2026-08-13), DXP Enterprises's WACC % is 9.66%. DXP Enterprises's ROIC % is 11.11% (calculated using TTM income statement data).
DXP Enterprises generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, DXP Enterprises's WACC % is 9.66%. DXP Enterprises's ROIC % is 11.11% (calculated using TTM income statement data).
DXP Enterprises generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
DXP Enterprises ROIC % Related Terms
DXP Enterprises ROIC % Historical Data
* Premium members only.
The historical data trend for DXP Enterprises's ROIC % 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.
For the Industrial Distribution subindustry, DXP Enterprises's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, DXP Enterprises's ROIC % distribution charts can be found below:
* The bar in red indicates where DXP Enterprises's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (DXPE) has a ROIC % of 11.88% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on DXP Enterprises and its competitors.
Is DXP Enterprises' ROIC % too high?
DXP Enterprises' current ROIC % is 11.88%. The Industrial Distribution industry median ROIC % is 6.12. DXP Enterprises' value of 11.88% is 94.3% above this industry median. Overall, DXP Enterprises has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does DXP Enterprises' ROIC % compare to DNOW and DSGR?
DXP Enterprises' ROIC % of 11.88% can be compared against companies in the Industrial Distribution industry. The industry median ROIC % is 6.12. DXP Enterprises' value of 11.88% is 94.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Industrial Distribution company?
The median ROIC % among Industrial Distribution companies is 6.12, based on 158 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DXP Enterprises's current ROIC % of 11.88% is 94.3% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on DXP Enterprises and its competitors. For the Industrial Distribution industry, the median ROIC % is 6.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DXP Enterprises's current ROIC % is 11.88%. 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 (DXPE) is currently considered Significantly Overvalued. The stock's GF Value™ is $99.63, compared to a current price of $195.76 — trading 96.5% above its estimated fair value. The current ROIC % is 11.88% and 94.3% above the Industrial Distribution industry median of 6.12. DXP Enterprises' overall GF Score™ is 63/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For DXP Enterprises (DXPE), the current ROIC % is 11.88% 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 (DXPE) Overvalued in 2026?
Based on GuruFocus' analysis, DXP Enterprises stock appears to be overvalued.
The current stock price of $195.76 is trading 96.5% above its estimated GF Value™ of $99.63.
GuruFocus considers DXP Enterprises to be Significantly Overvalued.
Key valuation signals for DXPE:
ROIC %: 11.88%
GF Value™: $99.63 vs. price of $195.76 (96.5% above fair value)
Industry Position: 94.3% above the Industrial Distribution median
No single metric tells the full story. See the DXPE 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.
63GF Score
Get the complete analysis for DXPE
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DXPE has been successfully added to your 
