GXO LOGISTICS INC (GXO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GXO - US36262G1013 - Common Stock
55.05 USD
-1.49 (-2.64%)
54.41 USD
-0.64 (-1.16%)
We assign a fundamental rating of 4 out of 10 to GXO. GXO was compared to 23 industry peers in the Air Freight & Logistics industry. While GXO belongs to the best of the industry regarding profitability, 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
- Looking at the Return On Assets, with a value of 0.75%, GXO is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
- With a decent Return On Equity value of 3.01%, GXO is doing good in the industry, outperforming 60.87% of the companies in the same industry.
- GXO has a better Return On Invested Capital (4.69%) than 60.87% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GXO is significantly below the industry average of 12.36%.
- The last Return On Invested Capital (4.69%) for GXO is above the 3 year average (4.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 3.01% | ||
| ROIC | 4.69% |
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 has a Profit Margin of 0.69%. This is in the better half of the industry: GXO outperforms 60.87% of its industry peers.
- In the last couple of years the Profit Margin of GXO has grown nicely.
- With a decent Operating Margin value of 3.18%, GXO is doing good in the industry, outperforming 69.57% of the companies in the same industry.
- GXO's Operating Margin has improved in the last couple of years.
- GXO has a Gross Margin of 15.14%. This is comparable to the rest of the industry: GXO outperforms 56.52% 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 | 3.18% | ||
| PM (TTM) | 0.69% | ||
| GM | 15.14% |
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.
- Compared to 1 year ago, GXO has more shares outstanding
- Compared to 5 years ago, GXO has more shares outstanding
- GXO has a worse debt/assets ratio than last year.
2.2 Solvency
- GXO has an Altman-Z score of 1.59. 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 (1.59) than 60.87% of its industry peers.
- GXO has a debt to FCF ratio of 35.04. This is a negative value and a sign of low solvency as GXO would need 35.04 years to pay back of all of its debts.
- GXO's Debt to FCF ratio of 35.04 is fine compared to the rest of the industry. GXO outperforms 65.22% of its industry peers.
- A Debt/Equity ratio of 0.74 indicates that GXO is somewhat dependend on debt financing.
- GXO's Debt to Equity ratio of 0.74 is on the low side compared to the rest of the industry. GXO is outperformed by 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 35.04 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.61
WACC7.68%
2.3 Liquidity
- GXO has a Current Ratio of 0.71. This is a bad value and indicates that GXO is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of GXO (0.71) is worse than 86.96% of its industry peers.
- GXO has a Quick Ratio of 0.71. This is a bad value and indicates that GXO is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.71, GXO is doing worse than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.43% over the past year.
- 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 quite strong growth in Revenue. The Revenue has grown by 16.94% in the last year.
- The Revenue has been growing by 13.95% on average over the past years. This is quite good.
EPS 1Y (TTM)6.43%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%0%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%7.54%
3.2 Future
- GXO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.88% yearly.
- 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-10.33%
EPS Next 2Y5.15%
EPS Next 3Y6.88%
EPS Next 5YN/A
Revenue Next Year12.47%
Revenue Next 2Y9.24%
Revenue Next 3Y8.03%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 20.77 indicates a rather expensive valuation of GXO.
- 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.
- The average S&P500 Price/Earnings ratio is at 26.94. GXO is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 17.85, which indicates a rather expensive current valuation of GXO.
- Based on the Price/Forward Earnings ratio, GXO is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. GXO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.77 | ||
| Fwd PE | 17.85 |
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.
- 60.87% 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 | 81.85 | ||
| EV/EBITDA | 10.06 |
4.3 Compensation for Growth
- GXO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y5.15%
EPS Next 3Y6.88%
5. Dividend
5.1 Amount
- GXO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
55.05
-1.49 (-2.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners105.61%
Inst Owner Change0.2%
Ins Owners0.27%
Ins Owner Change0.08%
Market Cap6.30B
Revenue(TTM)12.92B
Net Income(TTM)89.00M
Analysts84
Price Target67.32 (22.29%)
Short Float %6.38%
Short Ratio6.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1
Avg EPS beat(2)1.96%
Min EPS beat(2)-0.29%
Max EPS beat(2)4.22%
EPS beat(4)3
Avg EPS beat(4)5.58%
Min EPS beat(4)-0.29%
Max EPS beat(4)13.25%
EPS beat(8)7
Avg EPS beat(8)3.83%
EPS beat(12)11
Avg EPS beat(12)5.85%
EPS beat(16)15
Avg EPS beat(16)8.67%
Revenue beat(2)1
Avg Revenue beat(2)2.33%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)5.4%
Revenue beat(4)2
Avg Revenue beat(4)1.24%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)5.4%
Revenue beat(8)6
Avg Revenue beat(8)1.87%
Revenue beat(12)7
Avg Revenue beat(12)1.1%
Revenue beat(16)9
Avg Revenue beat(16)1.41%
PT rev (1m)3.23%
PT rev (3m)7.58%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-4.41%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-2.44%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.77 | ||
| Fwd PE | 17.85 | ||
| P/S | 0.49 | ||
| P/FCF | 81.85 | ||
| P/OCF | 14.01 | ||
| P/B | 2.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.06 |
EPS(TTM)2.65
EY4.81%
EPS(NY)3.08
Fwd EY5.6%
FCF(TTM)0.67
FCFY1.22%
OCF(TTM)3.93
OCFY7.14%
SpS112.86
BVpS25.81
TBVpS-15.57
PEG (NY)N/A
PEG (5Y)1.25
Graham Number39.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 3.01% | ||
| ROCE | 5.15% | ||
| ROIC | 4.69% | ||
| ROICexc | 4.9% | ||
| ROICexgc | 12.92% | ||
| OM | 3.18% | ||
| PM (TTM) | 0.69% | ||
| GM | 15.14% | ||
| FCFM | 0.6% |
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%
ROICexgc growth 3Y3.74%
ROICexgc 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 Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 35.04 | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 82.89% | ||
| Cap/Sales | 2.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.26% | ||
| Profit Quality | 86.52% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.59 |
F-Score5
WACC7.68%
ROIC/WACC0.61
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)6.43%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%0%
EPS Next Y-10.33%
EPS Next 2Y5.15%
EPS Next 3Y6.88%
EPS Next 5YN/A
Revenue 1Y (TTM)16.94%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%7.54%
Revenue Next Year12.47%
Revenue Next 2Y9.24%
Revenue Next 3Y8.03%
Revenue Next 5Y7.62%
EBIT growth 1Y15.13%
EBIT growth 3Y14.37%
EBIT growth 5Y18.01%
EBIT Next Year86.08%
EBIT Next 3Y29.85%
EBIT Next 5Y20.85%
FCF growth 1Y-70.5%
FCF growth 3Y-2.5%
FCF growth 5YN/A
OCF growth 1Y-20.91%
OCF growth 3Y6.46%
OCF growth 5Y30.51%
GXO LOGISTICS INC / GXO FAQ
Can you provide the ChartMill fundamental rating for GXO LOGISTICS INC?
ChartMill assigns a fundamental rating of 4 / 10 to GXO.
What is the valuation status of GXO LOGISTICS INC (GXO) stock?
ChartMill assigns a valuation rating of 5 / 10 to GXO LOGISTICS INC (GXO). This can be considered as Fairly Valued.
Can you provide the profitability details for GXO LOGISTICS INC?
GXO LOGISTICS INC (GXO) has a profitability rating of 7 / 10.
How financially healthy is GXO LOGISTICS INC?
The financial health rating of GXO LOGISTICS INC (GXO) is 1 / 10.
What is the expected EPS growth for GXO LOGISTICS INC (GXO) stock?
The Earnings per Share (EPS) of GXO LOGISTICS INC (GXO) is expected to decline by -10.33% in the next year.