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DXP Enterprises (DXPE): Evaluating the Stock’s Valuation After New $205 Million Refinancing for Acquisition Growth

Simply Wall St·12/25/2025 09:30:25
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DXP Enterprises (DXPE) just gave investors a fresh catalyst by closing a major refinancing of its Senior Secured Term Loan B and adding $205 million in new borrowings to fuel acquisition led growth.

See our latest analysis for DXP Enterprises.

The refinancing headlines arrive as DXP’s share price sits at $115.0, with a strong year to date share price return of 36 percent and a powerful five year total shareholder return of roughly 406 percent, signaling that momentum around its acquisition story is still very much alive.

If this kind of acquisition fueled run up has your attention, it could be a smart moment to explore fast growing stocks with high insider ownership for other fast moving opportunities with committed insiders behind them.

With the stock still trading at a meaningful discount to analyst targets and intrinsic value estimates despite robust growth and fresh firepower for acquisitions, the key question now is whether DXPE remains attractive or if markets are already pricing in its next leg of expansion.

Most Popular Narrative: 15.8% Undervalued

With DXP Enterprises last closing at $115.0 against a most-followed fair value of $136.50, the narrative is leaning into a still-material upside case.

The company's robust acquisition pipeline and recent moves to expand geographically and diversify into new markets (such as water, air compressors, and data centers) position it to accelerate top-line growth and increase earnings power, leveraging long-term industry consolidation trends.

Read the complete narrative.

Curious how steady but unspectacular growth assumptions can still justify a premium valuation? The narrative leans on expanding margins and a future earnings multiple that rivals larger industrial peers. Want to see which specific profit and revenue forecasts make that math work? Read on to uncover the detailed playbook behind this fair value.

Result: Fair Value of $136.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upside case could unravel if energy end markets roll over or if larger, complex acquisitions fail to deliver expected cost and revenue synergies.

Find out about the key risks to this DXP Enterprises narrative.

Build Your Own DXP Enterprises Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just a few minutes: Do it your way.

A great starting point for your DXP Enterprises research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.