GXO LOGISTICS INC (GXO)
US36262G1013 - Common Stock
Taking everything into account, GXO scores 4 out of 10 in our fundamental rating. GXO was compared to 18 industry peers in the Air Freight & Logistics industry. GXO has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
GXO had a positive operating cash flow in the past year.
Of the past 5 years GXO 4 years were profitable.
In the past 5 years GXO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.23%, GXO perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
GXO's Return On Equity of 4.83% is in line compared to the rest of the industry. GXO outperforms 55.56% of its industry peers.
GXO has a Return On Invested Capital of 3.50%. This is comparable to the rest of the industry: GXO outperforms 44.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GXO is significantly below the industry average of 22.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 4.83% | ||
| ROIC | 3.5% |
ROA(3y)2.22%
ROA(5y)1.43%
ROE(3y)7.27%
ROE(5y)4.61%
ROIC(3y)4.28%
ROIC(5y)3.46%
1.3 Margins
GXO has a Profit Margin of 1.35%. This is comparable to the rest of the industry: GXO outperforms 55.56% of its industry peers.
GXO's Profit Margin has improved in the last couple of years.
GXO's Operating Margin of 3.35% is in line compared to the rest of the industry. GXO outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of GXO has grown nicely.
GXO's Gross Margin of 16.85% is in line compared to the rest of the industry. GXO outperforms 44.44% of its industry peers.
GXO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.35% | ||
| PM (TTM) | 1.35% | ||
| GM | 16.85% |
OM growth 3Y38.29%
OM growth 5Y8.42%
PM growth 3YN/A
PM growth 5Y15.2%
GM growth 3Y2.48%
GM growth 5Y2.66%
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.
The number of shares outstanding for GXO has been increased compared to 1 year ago.
Compared to 1 year ago, GXO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.47, 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 1.47, GXO is doing worse than 61.11% of the companies in the same industry.
GXO has a debt to FCF ratio of 8.20. This is a slightly negative value and a sign of low solvency as GXO would need 8.20 years to pay back of all of its debts.
GXO's Debt to FCF ratio of 8.20 is in line compared to the rest of the industry. GXO outperforms 55.56% of 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's Debt to Equity ratio of 0.88 is in line compared to the rest of the industry. GXO outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 8.2 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.5
WACC7.07%
2.3 Liquidity
A Current Ratio of 0.86 indicates that GXO may have some problems paying its short term obligations.
GXO has a Current ratio of 0.86. This is in the lower half of the industry: GXO underperforms 77.78% of its industry peers.
GXO has a Quick Ratio of 0.86. 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 0.86 is on the low side compared to the rest of the industry. GXO is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
GXO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.72%.
The Earnings Per Share has been growing by 25.73% on average over the past years. This is a very strong growth
GXO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.42%.
GXO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.02% yearly.
EPS 1Y (TTM)-13.72%
EPS 3YN/A
EPS 5Y25.73%
EPS Q2Q%-21.43%
Revenue 1Y (TTM)9.42%
Revenue growth 3Y16.43%
Revenue growth 5Y10.02%
Sales Q2Q%18.88%
3.2 Future
GXO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.44% yearly.
Based on estimates for the next years, GXO will show a quite strong growth in Revenue. The Revenue will grow by 12.45% on average per year.
EPS Next Y8.39%
EPS Next 2Y14.13%
EPS Next 3Y14.64%
EPS Next 5Y13.44%
Revenue Next Year18%
Revenue Next 2Y14.13%
Revenue Next 3Y11.87%
Revenue Next 5Y12.45%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.66, which indicates a rather expensive current valuation of GXO.
GXO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 30.45. GXO is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.40, which indicates a correct valuation of GXO.
Based on the Price/Forward Earnings ratio, GXO is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.99, GXO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.66 | ||
| Fwd PE | 15.4 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GXO.
66.67% 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 | 18.3 | ||
| EV/EBITDA | 11.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GXO's earnings are expected to grow with 14.64% in the coming years.
PEG (NY)2.58
PEG (5Y)0.84
EPS Next 2Y14.13%
EPS Next 3Y14.64%
5. Dividend
5.1 Amount
No dividends for GXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GXO LOGISTICS INC
NYSE:GXO (9/18/2024, 8:05:44 PM)
After market: 51.76 0 (0%)51.76
+0.28 (+0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.18B
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 21.66 | ||
| Fwd PE | 15.4 | ||
| 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)2.58
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 4.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.35% | ||
| PM (TTM) | 1.35% | ||
| GM | 16.85% | ||
| 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 Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-13.72%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y8.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.42%
Revenue growth 3Y16.43%
Revenue growth 5Y
Sales 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