RXO INC (RXO)
US74982T1034 - Common Stock
Taking everything into account, RXO scores 3 out of 10 in our fundamental rating. RXO was compared to 36 industry peers in the Ground Transportation industry. Both the profitability and the financial health of RXO get a neutral evaluation. Nothing too spectacular is happening here. RXO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RXO was profitable.
In the past year RXO had a positive cash flow from operations.
Each year in the past 5 years RXO has been profitable.
Each year in the past 5 years RXO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.61%, RXO is doing worse than 72.22% of the companies in the same industry.
With a Return On Equity value of -1.89%, RXO is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
The Return On Invested Capital of RXO (3.30%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RXO is above the industry average of 7.75%.
The 3 year average ROIC (10.24%) for RXO is well above the current ROIC(3.30%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.61% | ||
| ROE | -1.89% | ||
| ROIC | 3.3% |
ROA(3y)4%
ROA(5y)N/A
ROE(3y)10.12%
ROE(5y)N/A
ROIC(3y)10.24%
ROIC(5y)N/A
1.3 Margins
RXO's Profit Margin has declined in the last couple of years.
The Operating Margin of RXO (1.25%) is worse than 69.44% of its industry peers.
RXO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 18.17%, RXO is doing worse than 77.78% of the companies in the same industry.
RXO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.25% | ||
| PM (TTM) | N/A | ||
| GM | 18.17% |
OM growth 3Y-11.98%
OM growth 5YN/A
PM growth 3Y-57%
PM growth 5YN/A
GM growth 3Y0.26%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RXO is creating some value.
Compared to 1 year ago, RXO has more shares outstanding
Compared to 1 year ago, RXO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.47 indicates that RXO is not in any danger for bankruptcy at the moment.
RXO has a Altman-Z score of 3.47. This is in the better half of the industry: RXO outperforms 75.00% of its industry peers.
RXO has a Debt/Equity ratio of 0.60. This is a neutral value indicating RXO is somewhat dependend on debt financing.
RXO has a Debt to Equity ratio (0.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.47 |
ROIC/WACC0.38
WACC8.6%
2.3 Liquidity
RXO has a Current Ratio of 1.14. This is a normal value and indicates that RXO is financially healthy and should not expect problems in meeting its short term obligations.
RXO's Current ratio of 1.14 is in line compared to the rest of the industry. RXO outperforms 47.22% of its industry peers.
A Quick Ratio of 1.14 indicates that RXO should not have too much problems paying its short term obligations.
The Quick ratio of RXO (1.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for RXO have decreased strongly by -119.83% in the last year.
RXO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -55.10% yearly.
RXO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.78%.
Measured over the past years, RXO shows a small growth in Revenue. The Revenue has been growing by 5.37% on average per year.
EPS 1Y (TTM)-119.83%
EPS 3Y-55.1%
EPS 5YN/A
EPS growth Q2Q-127.27%
Revenue 1Y (TTM)-14.78%
Revenue growth 3Y5.37%
Revenue growth 5YN/A
Revenue growth Q2Q-9.6%
3.2 Future
Based on estimates for the next years, RXO will show a very strong growth in Earnings Per Share. The EPS will grow by 44.44% on average per year.
RXO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.88% yearly.
EPS Next Y-20.55%
EPS Next 2Y51.63%
EPS Next 3Y44.44%
EPS Next 5YN/A
Revenue Next Year2.23%
Revenue Next 2Y6.39%
Revenue Next 3Y6.88%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RXO is valuated quite expensively with a Price/Earnings ratio of 128.63.
RXO's Price/Earnings ratio is a bit more expensive when compared to the industry. RXO is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.60. RXO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 29.84, the valuation of RXO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RXO indicates a slightly more expensive valuation: RXO is more expensive than 75.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, RXO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128.63 | ||
| Fwd PE | 29.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RXO is valued a bit more expensive than 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.59 |
4.3 Compensation for Growth
RXO's earnings are expected to grow with 44.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y51.63%
EPS Next 3Y44.44%
5. Dividend
5.1 Amount
RXO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RXO INC
NYSE:RXO (5/17/2024, 7:24:40 PM)
After market: 20.58 0 (0%)20.58
-0.55 (-2.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128.63 | ||
| Fwd PE | 29.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.61% | ||
| ROE | -1.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.25% | ||
| PM (TTM) | N/A | ||
| GM | 18.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-119.83%
EPS 3Y-55.1%
EPS 5Y
EPS growth Q2Q
EPS Next Y-20.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.78%
Revenue growth 3Y5.37%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y