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 4 out of 10. We evaluated GXO against 24 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
In the past year GXO was profitable.
GXO had a positive operating cash flow in the past year.
Of the past 5 years GXO 4 years were profitable.
Each year in the past 5 years GXO had a positive operating cash flow.
1.2 Ratios
GXO has a Return On Assets (1.19%) which is comparable to the rest of the industry.
GXO's Return On Equity of 4.46% is in line compared to the rest of the industry. GXO outperforms 52.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.28%, GXO is in line with its industry, outperforming 52.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GXO is significantly below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.19% | ||
| ROE | 4.46% | ||
| ROIC | 4.28% |
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
Looking at the Profit Margin, with a value of 1.14%, GXO is in line with its industry, outperforming 52.63% of the companies in the same industry.
In the last couple of years the Profit Margin of GXO has grown nicely.
GXO has a Operating Margin (3.25%) which is in line with its industry peers.
In the last couple of years the Operating Margin of GXO has grown nicely.
GXO's Gross Margin of 15.85% is in line compared to the rest of the industry. GXO outperforms 47.37% of its industry peers.
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 | 3.25% | ||
| PM (TTM) | 1.14% | ||
| GM | 15.85% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
The debt/assets ratio for GXO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that GXO is in the distress zone and has some risk of bankruptcy.
GXO has a Altman-Z score (1.52) which is comparable to the rest of the industry.
The Debt to FCF ratio of GXO is 13.85, which is on the high side as it means it would take GXO, 13.85 years of fcf income to pay off all of its debts.
GXO has a Debt to FCF ratio of 13.85. This is comparable to the rest of the industry: GXO outperforms 52.63% of its industry peers.
GXO has a Debt/Equity ratio of 0.84. This is a neutral value indicating GXO is somewhat dependend on debt financing.
The Debt to Equity ratio of GXO (0.84) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 13.85 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.58
WACC7.39%
2.3 Liquidity
A Current Ratio of 0.83 indicates that GXO may have some problems paying its short term obligations.
GXO has a Current ratio of 0.83. This is in the lower half of the industry: GXO underperforms 73.68% of its industry peers.
A Quick Ratio of 0.83 indicates that GXO may have some problems paying its short term obligations.
With a Quick ratio value of 0.83, GXO is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.14% over the past year.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.75%.
The Revenue has been growing by 13.95% on average over the past years. This is quite good.
EPS 1Y (TTM)8.14%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%42.86%
Revenue 1Y (TTM)19.75%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%25.48%
3.2 Future
The Earnings Per Share is expected to grow by 9.63% on average over the next years. This is quite good.
GXO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.06% yearly.
EPS Next Y-7.01%
EPS Next 2Y6.06%
EPS Next 3Y9.63%
EPS Next 5YN/A
Revenue Next Year8.38%
Revenue Next 2Y7.38%
Revenue Next 3Y7.06%
Revenue Next 5YN/A
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
A Price/Earnings ratio of 13.64 indicates a correct valuation of GXO.
GXO's Price/Earnings ratio is a bit cheaper when compared to the industry. GXO is cheaper than 78.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.75. GXO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 14.67 indicates a correct valuation of GXO.
GXO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GXO is cheaper than 78.95% of the companies in the same industry.
GXO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 14.67 |
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 63.16% 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 63.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.93 | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y6.06%
EPS Next 3Y9.63%
5. Dividend
5.1 Amount
No dividends for GXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
38.05
-1.37 (-3.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners96.8%
Inst Owner Change2.01%
Ins Owners0.85%
Ins Owner Change0%
Market Cap4.55B
Analysts81.9
Price Target56.73 (49.09%)
Short Float %3.81%
Short Ratio2.65
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)4.38%
Min EPS beat(2)3.64%
Max EPS beat(2)5.12%
EPS beat(4)4
Avg EPS beat(4)3.07%
Min EPS beat(4)1.06%
Max EPS beat(4)5.12%
EPS beat(8)8
Avg EPS beat(8)5.36%
EPS beat(12)12
Avg EPS beat(12)6.98%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.96%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)3.99%
Revenue beat(4)3
Avg Revenue beat(4)2.37%
Min Revenue beat(4)-0.06%
Max Revenue beat(4)3.99%
Revenue beat(8)5
Avg Revenue beat(8)1.04%
Revenue beat(12)6
Avg Revenue beat(12)0.7%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-15.87%
PT rev (3m)-20.27%
EPS NQ rev (1m)-48.3%
EPS NQ rev (3m)-52%
EPS NY rev (1m)-16.34%
EPS NY rev (3m)-20.72%
Revenue NQ rev (1m)-1.87%
Revenue NQ rev (3m)-2.74%
Revenue NY rev (1m)-1.39%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 14.67 | ||
| P/S | 0.39 | ||
| P/FCF | 23.93 | ||
| P/OCF | 8.28 | ||
| P/B | 1.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.71 |
EPS(TTM)2.79
EY7.33%
EPS(NY)2.59
Fwd EY6.82%
FCF(TTM)1.59
FCFY4.18%
OCF(TTM)4.59
OCFY12.08%
SpS98
BVpS25.13
TBVpS-12.82
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.19% | ||
| ROE | 4.46% | ||
| ROCE | 4.7% | ||
| ROIC | 4.28% | ||
| ROICexc | 4.51% | ||
| ROICexgc | 11.06% | ||
| OM | 3.25% | ||
| PM (TTM) | 1.14% | ||
| GM | 15.85% | ||
| FCFM | 1.62% |
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 Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 13.85 | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | 86.51% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 3.92 | ||
| Cash Conversion | 69.06% | ||
| Profit Quality | 141.79% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.52 |
F-Score4
WACC7.39%
ROIC/WACC0.58
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)8.14%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%42.86%
EPS Next Y-7.01%
EPS Next 2Y6.06%
EPS Next 3Y9.63%
EPS Next 5YN/A
Revenue 1Y (TTM)19.75%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%25.48%
Revenue Next Year8.38%
Revenue Next 2Y7.38%
Revenue Next 3Y7.06%
Revenue Next 5YN/A
EBIT growth 1Y-1.04%
EBIT growth 3Y14.37%
EBIT growth 5Y18.01%
EBIT Next Year90.75%
EBIT Next 3Y35.46%
EBIT Next 5YN/A
FCF growth 1Y-33.1%
FCF growth 3Y-2.5%
FCF growth 5YN/A
OCF growth 1Y-1.61%
OCF growth 3Y6.46%
OCF growth 5Y30.51%