GXO LOGISTICS INC (GXO) Stock Fundamental Analysis
USA - NYSE:GXO - US36262G1013 - Common Stock
50.84 USD
+0.1 (+0.2%)
50.84 USD
0 (0%)
GXO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 23 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 decent growth rate and is not valued too expensively.
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.
GXO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GXO (0.53%) is better than 60.87% of its industry peers.
The Return On Equity of GXO (2.14%) is better than 60.87% of its industry peers.
With a decent Return On Invested Capital value of 4.13%, GXO is doing good in the industry, outperforming 60.87% of the companies in the same industry.
GXO had an Average Return On Invested Capital over the past 3 years of 4.64%. This is significantly below the industry average of 12.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 2.14% | ||
| ROIC | 4.13% |
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
The Profit Margin of GXO (0.50%) is better than 60.87% of its industry peers.
GXO's Profit Margin has improved in the last couple of years.
GXO has a Operating Margin of 3.04%. This is in the better half of the industry: GXO outperforms 65.22% of its industry peers.
In the last couple of years the Operating Margin of GXO has grown nicely.
GXO has a Gross Margin of 15.01%. This is comparable to the rest of the industry: GXO outperforms 52.17% of its industry peers.
GXO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.04% | ||
| PM (TTM) | 0.5% | ||
| GM | 15.01% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GXO is destroying value.
GXO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GXO has been increased compared to 5 years ago.
Compared to 1 year ago, GXO has a worse debt to assets ratio.
2.2 Solvency
GXO has an Altman-Z score of 1.55. This is a bad value and indicates that GXO is not financially healthy and even has some risk of bankruptcy.
GXO has a worse Altman-Z score (1.55) than 60.87% of its industry peers.
GXO has a debt to FCF ratio of 28.88. This is a negative value and a sign of low solvency as GXO would need 28.88 years to pay back of all of its debts.
GXO has a Debt to FCF ratio (28.88) which is in line with its industry peers.
GXO has a Debt/Equity ratio of 0.88. This is a neutral value indicating GXO is somewhat dependend on debt financing.
GXO has a worse Debt to Equity ratio (0.88) than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 28.88 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.55
WACC7.46%
2.3 Liquidity
A Current Ratio of 0.76 indicates that GXO may have some problems paying its short term obligations.
With a Current ratio value of 0.76, GXO is not doing good in the industry: 82.61% of the companies in the same industry are doing better.
GXO has a Quick Ratio of 0.76. This is a bad value and indicates that GXO is not financially healthy enough and could expect problems in meeting its short term obligations.
GXO's Quick ratio of 0.76 is on the low side compared to the rest of the industry. GXO is outperformed by 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
GXO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.88%, which is quite good.
GXO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.56% yearly.
GXO shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.39%.
GXO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.95% yearly.
EPS 1Y (TTM)10.88%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%3.64%
Revenue 1Y (TTM)22.39%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%15.92%
3.2 Future
The Earnings Per Share is expected to grow by 7.74% on average over the next years.
Based on estimates for the next years, GXO will show a small growth in Revenue. The Revenue will grow by 7.62% on average per year.
EPS Next Y-7.99%
EPS Next 2Y5.97%
EPS Next 3Y7.74%
EPS Next 5YN/A
Revenue Next Year12.67%
Revenue Next 2Y9.55%
Revenue Next 3Y8.02%
Revenue Next 5Y7.62%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 19.18, GXO is valued on the expensive side.
Based on the Price/Earnings ratio, GXO is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
GXO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.23, the valuation of GXO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GXO indicates a somewhat cheap valuation: GXO is cheaper than 78.26% of the companies listed in the same industry.
GXO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 16.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GXO indicates a somewhat cheap valuation: GXO is cheaper than 69.57% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GXO is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.58 | ||
| EV/EBITDA | 10 |
4.3 Compensation for Growth
The decent profitability rating of GXO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y5.97%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
GXO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
50.84
+0.1 (+0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners105.6%
Inst Owner Change-1.45%
Ins Owners0.83%
Ins Owner Change0.59%
Market Cap5.82B
Analysts80.95
Price Target61.74 (21.44%)
Short Float %6.06%
Short Ratio6.64
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)8.74%
Min EPS beat(2)4.22%
Max EPS beat(2)13.25%
EPS beat(4)4
Avg EPS beat(4)6.56%
Min EPS beat(4)3.64%
Max EPS beat(4)13.25%
EPS beat(8)8
Avg EPS beat(8)4.37%
EPS beat(12)12
Avg EPS beat(12)6.45%
EPS beat(16)16
Avg EPS beat(16)9.27%
Revenue beat(2)2
Avg Revenue beat(2)2.89%
Min Revenue beat(2)0.37%
Max Revenue beat(2)5.4%
Revenue beat(4)3
Avg Revenue beat(4)2.42%
Min Revenue beat(4)-0.06%
Max Revenue beat(4)5.4%
Revenue beat(8)6
Avg Revenue beat(8)1.81%
Revenue beat(12)7
Avg Revenue beat(12)1.13%
Revenue beat(16)10
Avg Revenue beat(16)1.91%
PT rev (1m)6.19%
PT rev (3m)15.36%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)7.6%
EPS NY rev (1m)2.87%
EPS NY rev (3m)4.42%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)4.11%
Revenue NY rev (1m)2.93%
Revenue NY rev (3m)3.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 16.23 | ||
| P/S | 0.46 | ||
| P/FCF | 62.58 | ||
| P/OCF | 13.99 | ||
| P/B | 1.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10 |
EPS(TTM)2.65
EY5.21%
EPS(NY)3.13
Fwd EY6.16%
FCF(TTM)0.81
FCFY1.6%
OCF(TTM)3.63
OCFY7.15%
SpS110.8
BVpS25.68
TBVpS-16.55
PEG (NY)N/A
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 2.14% | ||
| ROCE | 4.53% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.23% | ||
| ROICexgc | 10.11% | ||
| OM | 3.04% | ||
| PM (TTM) | 0.5% | ||
| GM | 15.01% | ||
| FCFM | 0.73% |
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-Score5
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 28.88 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 72.91% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.18% | ||
| Profit Quality | 147.62% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.55 |
F-Score5
WACC7.46%
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)10.88%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%3.64%
EPS Next Y-7.99%
EPS Next 2Y5.97%
EPS Next 3Y7.74%
EPS Next 5YN/A
Revenue 1Y (TTM)22.39%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%15.92%
Revenue Next Year12.67%
Revenue Next 2Y9.55%
Revenue Next 3Y8.02%
Revenue Next 5Y7.62%
EBIT growth 1Y11.24%
EBIT growth 3Y14.37%
EBIT growth 5Y18.01%
EBIT Next Year82.94%
EBIT Next 3Y29.97%
EBIT Next 5Y20.85%
FCF growth 1Y-10.58%
FCF growth 3Y-2.5%
FCF growth 5YN/A
OCF growth 1Y-5.88%
OCF growth 3Y6.46%
OCF growth 5Y30.51%