RXO INC (RXO) Stock Fundamental Analysis
USA - NYSE:RXO - US74982T1034 - Common Stock
17.28 USD
-0.13 (-0.75%)
17.28 USD
0 (0%)
Taking everything into account, RXO scores 3 out of 10 in our fundamental rating. RXO was compared to 42 industry peers in the Ground Transportation industry. RXO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. RXO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RXO was profitable.
RXO had a positive operating cash flow in the past year.
RXO had positive earnings in 4 of the past 5 years.
Of the past 5 years RXO 4 years had a positive operating cash flow.
1.2 Ratios
RXO's Return On Assets of -9.62% is on the low side compared to the rest of the industry. RXO is outperformed by 76.19% of its industry peers.
RXO's Return On Equity of -19.40% is on the low side compared to the rest of the industry. RXO is outperformed by 71.43% of its industry peers.
RXO has a Return On Invested Capital (0.71%) which is comparable to the rest of the industry.
RXO had an Average Return On Invested Capital over the past 3 years of 6.68%. This is in line with the industry average of 7.72%.
The 3 year average ROIC (6.68%) for RXO is well above the current ROIC(0.71%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.62% | ||
| ROE | -19.4% | ||
| ROIC | 0.71% |
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
The Operating Margin of RXO (0.38%) is comparable to the rest of the industry.
RXO's Operating Margin has declined in the last couple of years.
The Gross Margin of RXO (16.69%) is worse than 69.05% 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 | 0.38% | ||
| PM (TTM) | N/A | ||
| GM | 16.69% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RXO is destroying value.
RXO has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, RXO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.79 indicates that RXO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.79, RXO is doing good in the industry, outperforming 69.05% of the companies in the same industry.
RXO has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
RXO has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.79 |
ROIC/WACC0.08
WACC9.42%
2.3 Liquidity
RXO has a Current Ratio of 1.35. This is a normal value and indicates that RXO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.35, RXO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that RXO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.35, RXO is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
RXO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.09%, which is quite good.
RXO shows a strong growth in Revenue. In the last year, the Revenue has grown by 46.41%.
RXO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.69% yearly.
EPS 1Y (TTM)9.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)46.41%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%52.58%
3.2 Future
The Earnings Per Share is expected to grow by 81.00% on average over the next years. This is a very strong growth
Based on estimates for the next years, RXO will show a quite strong growth in Revenue. The Revenue will grow by 12.22% on average per year.
EPS Next Y9.94%
EPS Next 2Y80.43%
EPS Next 3Y81%
EPS Next 5YN/A
Revenue Next Year28.44%
Revenue Next 2Y17.27%
Revenue Next 3Y13.3%
Revenue Next 5Y12.22%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 144.00 indicates a quite expensive valuation of RXO.
Compared to the rest of the industry, the Price/Earnings ratio of RXO indicates a slightly more expensive valuation: RXO is more expensive than 61.90% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.19. RXO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 48.26, the valuation of RXO can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as RXO.
When comparing the Price/Forward Earnings ratio of RXO to the average of the S&P500 Index (22.50), we can say RXO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 144 | ||
| Fwd PE | 48.26 |
4.2 Price Multiples
64.29% of the companies in the same industry are cheaper than RXO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.65 |
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 RXO's earnings are expected to grow with 81.00% in the coming years.
PEG (NY)14.48
PEG (5Y)N/A
EPS Next 2Y80.43%
EPS Next 3Y81%
5. Dividend
5.1 Amount
No dividends for RXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.28
-0.13 (-0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners106.46%
Inst Owner Change0.01%
Ins Owners0.65%
Ins Owner Change0.35%
Market Cap2.83B
Revenue(TTM)5.56B
Net Income(TTM)-308000000
Analysts64.8
Price Target16.52 (-4.4%)
Short Float %7.1%
Short Ratio5.8
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)1
Avg EPS beat(2)20.59%
Min EPS beat(2)-59.87%
Max EPS beat(2)101.04%
EPS beat(4)3
Avg EPS beat(4)14.53%
Min EPS beat(4)-59.87%
Max EPS beat(4)101.04%
EPS beat(8)7
Avg EPS beat(8)69.32%
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)0
Avg Revenue beat(2)-3.72%
Min Revenue beat(2)-5.04%
Max Revenue beat(2)-2.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)5.55%
Revenue beat(8)2
Avg Revenue beat(8)-1.09%
Revenue beat(12)2
Avg Revenue beat(12)-2.34%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.63%
PT rev (3m)-3.07%
EPS NQ rev (1m)-22.87%
EPS NQ rev (3m)-18.3%
EPS NY rev (1m)-17.55%
EPS NY rev (3m)-25.24%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-5.68%
Revenue NY rev (1m)-1.46%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 144 | ||
| Fwd PE | 48.26 | ||
| P/S | 0.51 | ||
| P/FCF | N/A | ||
| P/OCF | 404.82 | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.65 |
EPS(TTM)0.12
EY0.69%
EPS(NY)0.36
Fwd EY2.07%
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)0.04
OCFY0.25%
SpS33.9
BVpS9.68
TBVpS-0.07
PEG (NY)14.48
PEG (5Y)N/A
Graham Number5.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.62% | ||
| ROE | -19.4% | ||
| ROCE | 0.9% | ||
| ROIC | 0.71% | ||
| ROICexc | 0.72% | ||
| ROICexgc | 2.36% | ||
| OM | 0.38% | ||
| PM (TTM) | N/A | ||
| GM | 16.69% | ||
| 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%
ROICexgc growth 3Y-52.22%
ROICexgc 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-Score4
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 44.83% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 0.75 | ||
| Cash Conversion | 5.11% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 2.79 |
F-Score4
WACC9.42%
ROIC/WACC0.08
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)9.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y9.94%
EPS Next 2Y80.43%
EPS Next 3Y81%
EPS Next 5YN/A
Revenue 1Y (TTM)46.41%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%52.58%
Revenue Next Year28.44%
Revenue Next 2Y17.27%
Revenue Next 3Y13.3%
Revenue Next 5Y12.22%
EBIT growth 1Y-44.74%
EBIT growth 3Y-46.51%
EBIT growth 5Y-20.08%
EBIT Next Year234.95%
EBIT Next 3Y84.92%
EBIT Next 5Y56.44%
FCF growth 1Y-132.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-96.48%
OCF growth 3YN/A
OCF growth 5YN/A
RXO INC / RXO FAQ
What is the fundamental rating for RXO stock?
ChartMill assigns a fundamental rating of 3 / 10 to RXO.
What is the valuation status of RXO INC (RXO) stock?
ChartMill assigns a valuation rating of 1 / 10 to RXO INC (RXO). This can be considered as Overvalued.
What is the profitability of RXO stock?
RXO INC (RXO) has a profitability rating of 3 / 10.
What is the financial health of RXO INC (RXO) stock?
The financial health rating of RXO INC (RXO) is 4 / 10.