Steven Cress is VP of Quantitative Strategy and Market Data at Seeking Alpha. Steve is also the creator of the platform’s quantitative stock rating system and many of the analytical tools on Seeking Alpha. His contributions form the cornerstone of the Seeking Alpha Quant Rating system, designed to interpret data for investors and offer insights on investment directions, thereby saving valuable time for users. He is also the Founder and Co-Manager of Alpha Picks, a systematic stock recommendation tool design ...

If achieving profit is a company’s goal, then having a healthy cash flow is most essential for its existence, development and success. This is because cash offers strength, vitality and flexibility to make investment decisions as well as the fuel to run its growth engine.In this regard, stocks such as Griffon Corporation (GFF) , Nomad Foods Limited (NOMD) , DXP Enterprises, Inc. (DXPE) and Limbach Holdings, Inc. (LMB) are worth buying.Investors flock to companies that earn profits but even a profitable busi ...

U.S. stock markets are witnessing extreme volatility in April due to the imposition of the Trump administration’s “Liberation Day” tariffs. The baseline tariff of 10% was imposed on all imports on April 5. However, the important thing is that tariff rates go up to as high as 145% for some countries (such as China), depending on the rate at which these governments levy duties on U.S. exports. China retaliated with 84% tariffs on all U.S.-made products effective April 10.This seems to be the beginning of a gl ...

Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - DXP Enterprises (DXPE) is recommended as a cutting-edge growth stock based on its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 51.1%, with projected EPS growth of 17.1% this year, significantly higher than the industry average of 6.8% [5] Group 2: Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly preferable [4] - DXP Enterprises' projected EPS growth of 17.1% this year indicates strong prospects for stock price gains [5] Group 3: Cash Flow Growth - Year-over-year cash flow growth for DXP Enterprises is 6.5%, surpassing the industry average of 1.6% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 12.3%, compared to the industry average of 8.5% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - The current-year earnings estimates for DXP Enterprises have increased by 22.5% over the past month [9] Group 5: Investment Potential - DXP Enterprises has earned a Growth Score of B and carries a Zacks Rank 1 due to positive earnings estimate revisions, indicating it is a solid choice for growth investors [11]

Core Viewpoint - The article highlights DXP Enterprises (DXPE) as a promising growth stock, supported by its favorable Growth Score and Zacks Rank, indicating strong potential for outperformance in the market [2][11]. Earnings Growth - DXP Enterprises has a historical EPS growth rate of 51.1%, with projected EPS growth of 17.1% for the current year, significantly surpassing the industry average of 7.8% [5]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 6.5%, which is higher than the industry average of 2.9%. Additionally, its annualized cash flow growth rate over the past 3-5 years stands at 12.3%, compared to the industry average of 8.2% [6][7]. Earnings Estimate Revisions - There has been a notable upward revision in current-year earnings estimates for DXP Enterprises, with the Zacks Consensus Estimate increasing by 22.5% over the past month [9]. Overall Positioning - DXP Enterprises holds a Growth Score of B and a Zacks Rank 1, positioning it favorably for growth investors seeking strong performance [11].

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...

Exiting 2024, DXP Enterprises (NASDAQ: DXPE ) delivered another quarter with double-digit growth across its topline, thanks to robust momentum in the Innovative Pumping Solutions segment followed by expansion in new stronger end markets likeAs a finance enthusiast with experience in research, I am deeply engaged in studying diverse businesses, especially in the technology, industrial, and conglomerate sectors. I really like companies that have strong foundations and see them doing well in the long run. I en ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K For the transition period from _________ to _________. Commission file number 0-21513 DXP Enterprises, Inc. (Exact name of registrant as specified in its charter) Texas 5301 Hollister, Houston, Texas 77040 76-0509661 (State of incorporation) (Address of principal executive of ices, including zip code) (I.R.S. Employer Identification Number) (713) 996-4700 (Registrant's telephone number, including area code) Securities register ...

Financial Performance - Fiscal 2024 sales reached $1.8 billion, representing a 7.4% increase from fiscal 2023[5] - Fourth quarter sales were $470.9 million, up from $407.0 million in the same quarter of 2023, marking a year-over-year growth of 15.6%[6] - Full year GAAP diluted EPS was $4.22, compared to $3.89 in fiscal 2023, reflecting an increase of 8.5%[6] - Adjusted EBITDA for fiscal 2024 was $191.3 million, a 9.8% increase from $174.3 million in 2023[6] - Adjusted net income for the twelve months ended December 31, 2024, was $75,396, up from $71,212 in 2023, representing a 5.5% increase[27] - The company reported a diluted earnings per share of $1.29 for the three months ended December 31, 2024, compared to $0.94 in 2023, a 37.2% increase[27] Cash Flow and Debt - Free cash flow for fiscal 2024 was $77.1 million, which is 42.3% of EBITDA, down from $94.0 million in fiscal 2023[6] - Free cash flow for the three months ended December 31, 2024, was $22,748, down from $37,287 in 2023, indicating a decrease of 39%[27] - The company ended fiscal 2024 with $148.4 million in cash and net debt of $500.6 million, resulting in a secured leverage ratio of 2.4:1.0[8] - Long-term debt rose to $621,684 as of December 31, 2024, from $520,697 in 2023, reflecting a 19.4% increase[18] Sales and Market Position - Innovative Pumping Solutions sales surged 47.7% to $323.0 million, while Supply Chain Services sales declined 1.5% to $256.4 million[8] - Organic sales for the three months ended December 31, 2024, were $436,127, compared to $404,232 in 2023, showing an 8% growth[25] - Total DXP sales for the three months ended December 31, 2024, reached $470,914, a 15.6% increase from $407,044 in the same period of 2023[20] Operational Efficiency - Operating income for the total segments increased to $64,948 for the three months ended December 31, 2024, compared to $51,142 in 2023, reflecting a 27% growth[20] - EBITDA for the three months ended December 31, 2024, was $48,984, up from $40,501 in 2023, representing a 21.5% increase[24] Assets and Liabilities - Total assets increased to $1,349,494 as of December 31, 2024, compared to $1,177,436 in 2023, marking a growth of 14.6%[18] - The total current liabilities increased to $243,984 as of December 31, 2024, from $224,165 in 2023, reflecting an 8.9% rise[18] Strategic Growth - DXP completed seven acquisitions during fiscal 2024, enhancing its market position[5] - The company expects continued growth driven by both organic and acquisition strategies, supported by a strong balance sheet[8]

Financial Data and Key Metrics Changes - DXP Enterprises reported a 7.4% increase in total sales for fiscal 2024, reaching $1.8 billion, with adjusted EBITDA of $191.3 million, reflecting a 9.8% year-over-year increase [9][30][37] - Gross profit margins improved by 77 basis points to 30.9%, marking a second consecutive fiscal year with adjusted EBITDA margins exceeding 10% [9][29][50] - Diluted earnings per share for fiscal 2024 increased to $4.22, up from $3.89 in the previous year, with adjusted diluted EPS in Q4 at $1.38 [51][63] Business Line Data and Key Metrics Changes - Innovative Pumping Solutions (IPS) experienced significant growth of 47.7% year-over-year, contributing $323 million to total sales [22][40] - Service Centers grew by 1.9% to $1.2 billion, while Supply Chain Services saw a slight decline of 1.5% [22][40] - IPS sales contribution increased to 18% of total sales in 2024, up from 13% in 2023 [30][46] Market Data and Key Metrics Changes - DXP's end-market diversification included oil and gas at 23%, water and wastewater at 10%, and food and beverage at 7% [11] - The DXP Water backlog grew by 108% year-over-year, with organic growth of 39.5% [42] - Regions showing year-over-year growth included North Central, South Rockies, and Southwest, with notable strength in Canadian rotating equipment and U.S. safety services [27][43] Company Strategy and Development Direction - The company aims to double its size over the next 3 to 5 years through strategic investments and acquisitions, having completed 7 acquisitions in fiscal 2024 [15][18] - DXP continues to focus on diversifying end markets, particularly in water and wastewater, while maintaining operational efficiencies [13][19] - The strategy combines the strengths of a large company with the agility of local businesses to enhance customer value and growth opportunities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2025, anticipating continued organic and acquisition-driven growth, with a strong pipeline of opportunities [18][21] - The company is well-positioned to navigate inflationary pressures, with a history of passing on cost increases to customers [34][80] - Management highlighted the importance of maintaining margins while driving long-term operational efficiencies [31][79] Other Important Information - DXP generated $77 million in free cash flow for fiscal 2024, reflecting a focus on consistent cash generation while investing in working capital [17][57] - The company successfully refinanced its Term Loan B, reducing borrowing costs and raising an additional $105 million for acquisitions [55][61] - Capital expenditures for fiscal 2024 were $25.1 million, up from $12.3 million in fiscal 2023, indicating a commitment to reinvestment [56] Q&A Session Summary Question: Can you share daily sales trends by month for Q4 and into Q1? - In Q4, sales per business day were $7.2 million in October, $7.5 million in November, and $8.1 million in December. For January and February 2025, sales per business day were $6.8 million and $7.8 million respectively [68][69] Question: How are margins trending quarter-over-quarter? - Margins increased significantly from Q3 to Q4, driven by a favorable mix, particularly from water and wastewater acquisitions, which typically have higher gross and EBITDA margins [70][72] Question: What are the company's goals regarding EBITDA margins? - The company aims to achieve 11% EBITDA margins, having previously set a goal of 10%, which has been met [74][79]