RXO INC (RXO) Stock Fundamental Analysis
NYSE:RXO - New York Stock Exchange, Inc. - US74982T1034 - Common Stock - Currency: USD
Taking everything into account, RXO scores 3 out of 10 in our fundamental rating. RXO was compared to 41 industry peers in the Ground Transportation industry. While RXO seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, RXO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year RXO was profitable.
In the past year RXO has reported a negative cash flow from operations.
Of the past 5 years RXO 4 years were profitable.
Of the past 5 years RXO 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RXO (-8.49%) is worse than 75.61% of its industry peers.
Looking at the Return On Equity, with a value of -17.99%, RXO is doing worse than 75.61% of the companies in the same industry.
With a Return On Invested Capital value of 1.01%, RXO is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for RXO is in line with the industry average of 8.12%.
The 3 year average ROIC (6.68%) for RXO is well above the current ROIC(1.01%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.49% | ||
| ROE | -17.99% | ||
| ROIC | 1.01% |
ROA(3y)-1.25%
ROA(5y)1.16%
ROE(3y)-0.55%
ROE(5y)3.28%
ROIC(3y)6.68%
ROIC(5y)7.55%
1.3 Margins
Looking at the Operating Margin, with a value of 0.66%, RXO is doing worse than 63.41% of the companies in the same industry.
RXO's Operating Margin has declined in the last couple of years.
RXO's Gross Margin of 17.21% is on the low side compared to the rest of the industry. RXO is outperformed by 75.61% of its industry peers.
In the last couple of years the Gross Margin of RXO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.66% | ||
| PM (TTM) | N/A | ||
| GM | 17.21% |
OM growth 3Y-45.97%
OM growth 5Y-25.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.37%
GM growth 5Y-0.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RXO is destroying value.
RXO has more shares outstanding than it did 1 year ago.
The debt/assets ratio for RXO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.09 indicates that RXO is not a great score, but indicates only limited risk for bankruptcy at the moment.
RXO has a Altman-Z score (2.09) which is in line with its industry peers.
RXO has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RXO (0.22) is better than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.09 |
ROIC/WACC0.11
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.26 indicates that RXO should not have too much problems paying its short term obligations.
RXO has a better Current ratio (1.26) than 63.41% of its industry peers.
A Quick Ratio of 1.26 indicates that RXO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.26, RXO is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for RXO have decreased strongly by -63.33% in the last year.
The Revenue has grown by 15.86% in the past year. This is quite good.
RXO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.69% yearly.
EPS 1Y (TTM)-63.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)15.86%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%70.45%
3.2 Future
Based on estimates for the next years, RXO will show a very strong growth in Earnings Per Share. The EPS will grow by 104.46% on average per year.
RXO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.22% yearly.
EPS Next Y109.25%
EPS Next 2Y129.79%
EPS Next 3Y104.46%
EPS Next 5YN/A
Revenue Next Year43.04%
Revenue Next 2Y24.16%
Revenue Next 3Y18.58%
Revenue Next 5Y12.22%
3.3 Evolution
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 124.18, which means the current valuation is very expensive for RXO.
60.98% of the companies in the same industry are cheaper than RXO, based on the Price/Earnings ratio.
RXO is valuated expensively when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
RXO is valuated quite expensively with a Price/Forward Earnings ratio of 59.35.
Based on the Price/Forward Earnings ratio, RXO is valued a bit more expensive than 60.98% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. RXO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 124.18 | ||
| Fwd PE | 59.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RXO is valued a bit more expensive than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.98 |
4.3 Compensation for Growth
RXO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as RXO's earnings are expected to grow with 104.46% in the coming years.
PEG (NY)1.14
PEG (5Y)N/A
EPS Next 2Y129.79%
EPS Next 3Y104.46%
5. Dividend
5.1 Amount
No dividends for RXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.66
+0.18 (+1.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners105.65%
Inst Owner Change0.58%
Ins Owners1.13%
Ins Owner Change2.54%
Market Cap2.24B
Analysts66.4
Price Target20.34 (48.9%)
Short Float %5.72%
Short Ratio5.6
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)8.48%
Min EPS beat(2)2.42%
Max EPS beat(2)14.54%
EPS beat(4)4
Avg EPS beat(4)15.51%
Min EPS beat(4)2.42%
Max EPS beat(4)23.76%
EPS beat(8)7
Avg EPS beat(8)71%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.36%
Min Revenue beat(2)-0.83%
Max Revenue beat(2)5.55%
Revenue beat(4)1
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)5.55%
Revenue beat(8)2
Avg Revenue beat(8)-1.66%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-12.1%
PT rev (3m)-28.03%
EPS NQ rev (1m)-33.29%
EPS NQ rev (3m)-232.71%
EPS NY rev (1m)-20.84%
EPS NY rev (3m)-56.03%
Revenue NQ rev (1m)-1.57%
Revenue NQ rev (3m)-6.74%
Revenue NY rev (1m)-2.21%
Revenue NY rev (3m)-4.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 124.18 | ||
| Fwd PE | 59.35 | ||
| P/S | 0.49 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.98 |
EPS(TTM)0.11
EY0.81%
EPS(NY)0.23
Fwd EY1.69%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)-0.07
OCFYN/A
SpS27.76
BVpS9.83
TBVpS-0.06
PEG (NY)1.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.49% | ||
| ROE | -17.99% | ||
| ROCE | 1.28% | ||
| ROIC | 1.01% | ||
| ROICexc | 1.02% | ||
| ROICexgc | 3.42% | ||
| OM | 0.66% | ||
| PM (TTM) | N/A | ||
| GM | 17.21% | ||
| FCFM | N/A |
ROA(3y)-1.25%
ROA(5y)1.16%
ROE(3y)-0.55%
ROE(5y)3.28%
ROIC(3y)6.68%
ROIC(5y)7.55%
ROICexc(3y)7.11%
ROICexc(5y)7.93%
ROICexgc(3y)19.6%
ROICexgc(5y)21.22%
ROCE(3y)8.45%
ROCE(5y)9.55%
ROICexcg growth 3Y-52.22%
ROICexcg growth 5YN/A
ROICexc growth 3Y-56.75%
ROICexc growth 5YN/A
OM growth 3Y-45.97%
OM growth 5Y-25.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.37%
GM growth 5Y-0.88%
F-Score3
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 51.72% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 1.11 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 2.09 |
F-Score3
WACC9.08%
ROIC/WACC0.11
Cap/Depr(3y)71.18%
Cap/Depr(5y)64.7%
Cap/Sales(3y)1.27%
Cap/Sales(5y)1.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-63.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y109.25%
EPS Next 2Y129.79%
EPS Next 3Y104.46%
EPS Next 5YN/A
Revenue 1Y (TTM)15.86%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%70.45%
Revenue Next Year43.04%
Revenue Next 2Y24.16%
Revenue Next 3Y18.58%
Revenue Next 5Y12.22%
EBIT growth 1Y-55.22%
EBIT growth 3Y-46.51%
EBIT growth 5Y-20.08%
EBIT Next Year301.93%
EBIT Next 3Y111.08%
EBIT Next 5Y56.44%
FCF growth 1Y-328%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-113.48%
OCF growth 3YN/A
OCF growth 5YN/A