GXO LOGISTICS INC (GXO)
US36262G1013 - Common Stock
Overall GXO gets a fundamental rating of 4 out of 10. We evaluated GXO against 20 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 is not valued too expensively and it also shows a decent 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.
GXO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years GXO had a positive operating cash flow.
1.2 Ratios
GXO has a Return On Assets (0.90%) which is in line with its industry peers.
GXO has a Return On Equity of 3.44%. This is comparable to the rest of the industry: GXO outperforms 52.63% of its industry peers.
GXO has a Return On Invested Capital (3.44%) which is in line with its industry peers.
GXO had an Average Return On Invested Capital over the past 3 years of 4.28%. This is significantly below the industry average of 10.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 3.44% | ||
| ROIC | 3.44% |
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 (0.97%) which is in line with its industry peers.
GXO's Profit Margin has improved in the last couple of years.
GXO's Operating Margin of 3.23% 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 Operating Margin of GXO has grown nicely.
GXO has a Gross Margin (16.05%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GXO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.23% | ||
| PM (TTM) | 0.97% | ||
| GM | 16.05% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GXO 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
GXO has an Altman-Z score of 1.39. This is a bad value and indicates that GXO is not financially healthy and even has some risk of bankruptcy.
GXO has a Altman-Z score of 1.39. This is comparable to the rest of the industry: GXO outperforms 42.11% of its industry peers.
GXO has a debt to FCF ratio of 10.94. This is a negative value and a sign of low solvency as GXO would need 10.94 years to pay back of all of its debts.
GXO's Debt to FCF ratio of 10.94 is in line compared to the rest of the industry. GXO outperforms 57.89% of its industry peers.
GXO has a Debt/Equity ratio of 0.82. This is a neutral value indicating GXO is somewhat dependend on debt financing.
GXO's Debt to Equity ratio of 0.82 is in line compared to the rest of the industry. GXO outperforms 47.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 10.94 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.42
WACC8.14%
2.3 Liquidity
A Current Ratio of 0.86 indicates that GXO may have some problems paying its short term obligations.
The Current ratio of GXO (0.86) is worse than 73.68% 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 has a Quick ratio of 0.86. This is in the lower half of the industry: GXO underperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
GXO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.12%.
Measured over the past years, GXO shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.73% on average per year.
Looking at the last year, GXO shows a quite strong growth in Revenue. The Revenue has grown by 14.44% in the last year.
Measured over the past years, GXO shows a quite strong growth in Revenue. The Revenue has been growing by 10.02% on average per year.
EPS 1Y (TTM)-8.12%
EPS 3YN/A
EPS 5Y25.73%
EPS Q2Q%14.49%
Revenue 1Y (TTM)14.44%
Revenue growth 3Y16.43%
Revenue growth 5Y10.02%
Sales Q2Q%27.76%
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 12.76% yearly.
GXO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.03% yearly.
EPS Next Y8.74%
EPS Next 2Y12.06%
EPS Next 3Y14.39%
EPS Next 5Y12.76%
Revenue Next Year20.15%
Revenue Next 2Y15.03%
Revenue Next 3Y12.32%
Revenue Next 5Y13.03%
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
Based on the Price/Earnings ratio of 17.10, the valuation of GXO can be described as rather expensive.
Based on the Price/Earnings ratio, GXO is valued a bit cheaper than 63.16% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. GXO is valued slightly cheaper when compared to this.
GXO is valuated correctly with a Price/Forward Earnings ratio of 13.14.
Based on the Price/Forward Earnings ratio, GXO is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, GXO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 13.14 |
4.2 Price Multiples
GXO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GXO is cheaper than 63.16% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GXO is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.03 | ||
| EV/EBITDA | 9.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GXO does not grow enough to justify the current Price/Earnings ratio.
GXO's earnings are expected to grow with 14.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.96
PEG (5Y)0.66
EPS Next 2Y12.06%
EPS Next 3Y14.39%
5. Dividend
5.1 Amount
No dividends for GXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GXO LOGISTICS INC
NYSE:GXO (12/26/2024, 9:35:07 AM)
42.5826
+0.32 (+0.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners94.28%
Inst Owner Change-0.91%
Ins Owners0.84%
Ins Owner Change0.01%
Market Cap5.09B
Analysts81.9
Price Target71.4 (67.67%)
Short Float %2.02%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)2.35%
Min EPS beat(2)1.06%
Max EPS beat(2)3.64%
EPS beat(4)4
Avg EPS beat(4)2.08%
Min EPS beat(4)1.06%
Max EPS beat(4)3.64%
EPS beat(8)8
Avg EPS beat(8)5.99%
EPS beat(12)12
Avg EPS beat(12)9.7%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.59%
Min Revenue beat(2)3.19%
Max Revenue beat(2)3.99%
Revenue beat(4)4
Avg Revenue beat(4)2.5%
Min Revenue beat(4)0.47%
Max Revenue beat(4)3.99%
Revenue beat(8)5
Avg Revenue beat(8)1.02%
Revenue beat(12)7
Avg Revenue beat(12)1.47%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.15%
PT rev (3m)3.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.86%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.36%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 13.14 | ||
| P/S | 0.46 | ||
| P/FCF | 20.03 | ||
| P/OCF | 8.8 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.68 |
EPS(TTM)2.49
EY5.85%
EPS(NY)3.24
Fwd EY7.61%
FCF(TTM)2.13
FCFY4.99%
OCF(TTM)4.84
OCFY11.36%
SpS92.48
BVpS26
TBVpS-13.65
PEG (NY)1.96
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 3.44% | ||
| ROCE | 4.22% | ||
| ROIC | 3.44% | ||
| ROICexc | 3.68% | ||
| ROICexgc | 9.16% | ||
| OM | 3.23% | ||
| PM (TTM) | 0.97% | ||
| GM | 16.05% | ||
| FCFM | 2.3% |
ROA(3y)2.22%
ROA(5y)1.43%
ROE(3y)7.27%
ROE(5y)4.61%
ROIC(3y)4.28%
ROIC(5y)3.46%
ROICexc(3y)4.6%
ROICexc(5y)3.7%
ROICexgc(3y)9.65%
ROICexgc(5y)7.77%
ROCE(3y)5.24%
ROCE(5y)4.24%
ROICexcg growth 3Y44.14%
ROICexcg growth 5YN/A
ROICexc growth 3Y42.88%
ROICexc growth 5YN/A
OM growth 3Y38.29%
OM growth 5Y8.42%
PM growth 3YN/A
PM growth 5Y15.2%
GM growth 3Y2.48%
GM growth 5Y2.66%
F-Score3
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 10.94 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | 82.03% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.86% | ||
| Profit Quality | 237.38% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.39 |
F-Score3
WACC8.14%
ROIC/WACC0.42
Cap/Depr(3y)84.83%
Cap/Depr(5y)79.34%
Cap/Sales(3y)3.25%
Cap/Sales(5y)3.4%
Profit Quality(3y)119.84%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.12%
EPS 3YN/A
EPS 5Y25.73%
EPS Q2Q%14.49%
EPS Next Y8.74%
EPS Next 2Y12.06%
EPS Next 3Y14.39%
EPS Next 5Y12.76%
Revenue 1Y (TTM)14.44%
Revenue growth 3Y16.43%
Revenue growth 5Y10.02%
Sales Q2Q%27.76%
Revenue Next Year20.15%
Revenue Next 2Y15.03%
Revenue Next 3Y12.32%
Revenue Next 5Y13.03%
EBIT growth 1Y-6.05%
EBIT growth 3Y61.01%
EBIT growth 5Y19.29%
EBIT Next Year87.98%
EBIT Next 3Y33.31%
EBIT Next 5Y28.19%
FCF growth 1Y20.38%
FCF growth 3Y36.77%
FCF growth 5Y34.3%
OCF growth 1Y11.15%
OCF growth 3Y18.78%
OCF growth 5Y10.74%