GXO LOGISTICS INC (GXO) Stock Fundamental Analysis
NYSE:GXO - New York Stock Exchange, Inc. - US36262G1013 - Common Stock - Currency: USD
Overall GXO gets a fundamental rating of 3 out of 10. We evaluated GXO against 22 industry peers in the Air Freight & Logistics industry. While GXO is still in line with the averages on profitability rating, there are concerns on its financial health. GXO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GXO had positive earnings in the past year.
In the past year GXO had a positive cash flow from operations.
GXO had positive earnings in 4 of the past 5 years.
In the past 5 years GXO always reported a positive cash flow from operatings.
1.2 Ratios
GXO has a Return On Assets of 0.66%. This is comparable to the rest of the industry: GXO outperforms 59.09% of its industry peers.
GXO's Return On Equity of 2.61% is in line compared to the rest of the industry. GXO outperforms 59.09% of its industry peers.
GXO's Return On Invested Capital of 4.24% is in line compared to the rest of the industry. GXO outperforms 59.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GXO is significantly below the industry average of 12.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 2.61% | ||
| ROIC | 4.24% |
ROA(3y)1.91%
ROA(5y)1.47%
ROE(3y)6.59%
ROE(5y)5.04%
ROIC(3y)4.64%
ROIC(5y)4.07%
1.3 Margins
GXO's Profit Margin of 0.61% is in line compared to the rest of the industry. GXO outperforms 59.09% of its industry peers.
GXO's Profit Margin has improved in the last couple of years.
The Operating Margin of GXO (3.03%) is better than 68.18% of its industry peers.
GXO's Operating Margin has improved in the last couple of years.
GXO has a Gross Margin (15.33%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GXO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.03% | ||
| PM (TTM) | 0.61% | ||
| GM | 15.33% |
OM growth 3Y0.48%
OM growth 5Y3.56%
PM growth 3Y-15.94%
PM growth 5Y3.05%
GM growth 3Y-1.15%
GM growth 5Y-0.33%
2. Health
2.1 Basic Checks
GXO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GXO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GXO has more shares outstanding
The debt/assets ratio for GXO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.60, we must say that GXO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.60, GXO is doing worse than 63.64% of the companies in the same industry.
GXO has a debt to FCF ratio of 16.59. This is a negative value and a sign of low solvency as GXO would need 16.59 years to pay back of all of its debts.
GXO's Debt to FCF ratio of 16.59 is in line compared to the rest of the industry. GXO outperforms 59.09% of its industry peers.
GXO has a Debt/Equity ratio of 0.89. This is a neutral value indicating GXO is somewhat dependend on debt financing.
GXO's Debt to Equity ratio of 0.89 is on the low side compared to the rest of the industry. GXO is outperformed by 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 16.59 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.55
WACC7.76%
2.3 Liquidity
A Current Ratio of 0.78 indicates that GXO may have some problems paying its short term obligations.
GXO's Current ratio of 0.78 is on the low side compared to the rest of the industry. GXO is outperformed by 86.36% of its industry peers.
A Quick Ratio of 0.78 indicates that GXO may have some problems paying its short term obligations.
GXO's Quick ratio of 0.78 is on the low side compared to the rest of the industry. GXO is outperformed by 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
GXO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.54%.
Measured over the past years, GXO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.56% on average per year.
Looking at the last year, GXO shows a very strong growth in Revenue. The Revenue has grown by 23.40%.
Measured over the past years, GXO shows a quite strong growth in Revenue. The Revenue has been growing by 13.95% on average per year.
EPS 1Y (TTM)3.54%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%-35.56%
Revenue 1Y (TTM)23.4%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%21.21%
3.2 Future
The Earnings Per Share is expected to grow by 6.44% on average over the next years.
GXO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.31% yearly.
EPS Next Y-10.56%
EPS Next 2Y3.53%
EPS Next 3Y6.44%
EPS Next 5YN/A
Revenue Next Year9.26%
Revenue Next 2Y7.77%
Revenue Next 3Y7.31%
Revenue Next 5Y6.31%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.82, the valuation of GXO can be described as rather expensive.
Based on the Price/Earnings ratio, GXO is valued a bit cheaper than 63.64% of the companies in the same industry.
GXO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.52.
GXO is valuated rather expensively with a Price/Forward Earnings ratio of 17.43.
77.27% of the companies in the same industry are more expensive than GXO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, GXO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
68.18% of the companies in the same industry are more expensive than GXO, based on the Enterprise Value to EBITDA ratio.
63.64% of the companies in the same industry are more expensive than GXO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.36 | ||
| EV/EBITDA | 10.42 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.2
EPS Next 2Y3.53%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
GXO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.12
+0.35 (+0.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners106.01%
Inst Owner Change-0.24%
Ins Owners0.83%
Ins Owner Change0.98%
Market Cap5.96B
Analysts80
Price Target53.52 (2.69%)
Short Float %6.87%
Short Ratio5.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.19%
Min EPS beat(2)5.12%
Max EPS beat(2)13.25%
EPS beat(4)4
Avg EPS beat(4)5.77%
Min EPS beat(4)1.06%
Max EPS beat(4)13.25%
EPS beat(8)8
Avg EPS beat(8)5.45%
EPS beat(12)12
Avg EPS beat(12)6.99%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)0.37%
Revenue beat(4)3
Avg Revenue beat(4)1.87%
Min Revenue beat(4)-0.06%
Max Revenue beat(4)3.99%
Revenue beat(8)5
Avg Revenue beat(8)1.08%
Revenue beat(12)7
Avg Revenue beat(12)0.8%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-0.69%
EPS NQ rev (1m)6.71%
EPS NQ rev (3m)4.4%
EPS NY rev (1m)1.5%
EPS NY rev (3m)2.72%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 17.43 | ||
| P/S | 0.49 | ||
| P/FCF | 36.36 | ||
| P/OCF | 11.29 | ||
| P/B | 2.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.42 |
EPS(TTM)2.63
EY5.05%
EPS(NY)2.99
Fwd EY5.74%
FCF(TTM)1.43
FCFY2.75%
OCF(TTM)4.61
OCFY8.85%
SpS106.89
BVpS25.08
TBVpS-15.12
PEG (NY)N/A
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 2.61% | ||
| ROCE | 4.65% | ||
| ROIC | 4.24% | ||
| ROICexc | 4.4% | ||
| ROICexgc | 11% | ||
| OM | 3.03% | ||
| PM (TTM) | 0.61% | ||
| GM | 15.33% | ||
| FCFM | 1.34% |
ROA(3y)1.91%
ROA(5y)1.47%
ROE(3y)6.59%
ROE(5y)5.04%
ROIC(3y)4.64%
ROIC(5y)4.07%
ROICexc(3y)4.96%
ROICexc(5y)4.36%
ROICexgc(3y)11.14%
ROICexgc(5y)9.46%
ROCE(3y)5.1%
ROCE(5y)4.47%
ROICexcg growth 3Y3.74%
ROICexcg growth 5Y9.39%
ROICexc growth 3Y-3.46%
ROICexc growth 5Y5.94%
OM growth 3Y0.48%
OM growth 5Y3.56%
PM growth 3Y-15.94%
PM growth 5Y3.05%
GM growth 3Y-1.15%
GM growth 5Y-0.33%
F-Score4
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 16.59 | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | 84.26% | ||
| Cap/Sales | 2.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.84% | ||
| Profit Quality | 218.67% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.6 |
F-Score4
WACC7.76%
ROIC/WACC0.55
Cap/Depr(3y)88.79%
Cap/Depr(5y)81.94%
Cap/Sales(3y)3.22%
Cap/Sales(5y)3.28%
Profit Quality(3y)122.44%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.54%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%-35.56%
EPS Next Y-10.56%
EPS Next 2Y3.53%
EPS Next 3Y6.44%
EPS Next 5YN/A
Revenue 1Y (TTM)23.4%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%21.21%
Revenue Next Year9.26%
Revenue Next 2Y7.77%
Revenue Next 3Y7.31%
Revenue Next 5Y6.31%
EBIT growth 1Y0.82%
EBIT growth 3Y14.37%
EBIT growth 5Y18.01%
EBIT Next Year79.87%
EBIT Next 3Y29.18%
EBIT Next 5Y20.16%
FCF growth 1Y-1.8%
FCF growth 3Y-2.5%
FCF growth 5YN/A
OCF growth 1Y-1.31%
OCF growth 3Y6.46%
OCF growth 5Y30.51%