DXP Enterprises Inc. (DXPE) exhibits 31.5% gross margins and 13.8% return on invested capital within Industrials (Industrial Machinery/Components), balanced against a 15.4x enterprise multiple and 4.8% implied options volatility.
Sustained 31.5% gross profitability converts into 8.8% operating margin and 13.8% ROIC, outpacing sector cost of capital.
ROIC: 13.8% // GM: 31.5%YoY revenue trajectory of +11.9% paired with 1.97% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +11.9% // FCF YLD: 1.97%Altman Z-Score of 3.78 and Piotroski F-Score of 8/9 indicate low near-term refinancing stress.
ALTMAN Z: 3.78 // F-SCORE: 8/9Trading at 30.8x trailing P/E (28.6x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 30.8x // EV/EBITDA: 15.4xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $176.29 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Industrial Machinery/Components require continuous execution to defend 4.4% net margins.
NET MARGIN: 4.4% // D/E: 1.64x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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