RXO INC (RXO) Stock Fundamental Analysis
NYSE:RXO - New York Stock Exchange, Inc. - US74982T1034 - Common Stock
Overall RXO gets a fundamental rating of 3 out of 10. We evaluated RXO against 38 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 valied quite expensively at the moment, while 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 each of the past 5 years.
Each year in the past 5 years RXO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RXO (-7.75%) is worse than 84.21% of its industry peers.
The Return On Equity of RXO (-15.92%) is worse than 78.95% of its industry peers.
RXO's Return On Invested Capital of 1.23% is on the low side compared to the rest of the industry. RXO is outperformed by 68.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RXO is above the industry average of 7.67%.
The last Return On Invested Capital (1.23%) for RXO is well below the 3 year average (10.24%), which needs to be investigated, but indicates that RXO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.75% | ||
| ROE | -15.92% | ||
| ROIC | 1.23% |
ROA(3y)4%
ROA(5y)N/A
ROE(3y)10.12%
ROE(5y)N/A
ROIC(3y)10.24%
ROIC(5y)N/A
1.3 Margins
RXO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 1.01%, RXO is doing worse than 71.05% of the companies in the same industry.
RXO's Operating Margin has declined in the last couple of years.
RXO has a worse Gross Margin (18.18%) than 76.32% 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 | 1.01% | ||
| PM (TTM) | N/A | ||
| GM | 18.18% |
OM growth 3Y-11.98%
OM growth 5YN/A
PM growth 3Y-57%
PM growth 5YN/A
GM growth 3Y0.26%
GM growth 5YN/A
2. Health
2.1 Basic Checks
RXO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RXO has been increased compared to 1 year ago.
RXO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.58 indicates that RXO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.58, RXO perfoms like the industry average, outperforming 55.26% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that RXO is not too dependend on debt financing.
RXO's Debt to Equity ratio of 0.21 is fine compared to the rest of the industry. RXO outperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.58 |
ROIC/WACC0.14
WACC8.97%
2.3 Liquidity
A Current Ratio of 1.33 indicates that RXO should not have too much problems paying its short term obligations.
The Current ratio of RXO (1.33) is better than 60.53% of its industry peers.
RXO has a Quick Ratio of 1.33. 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 Quick ratio value of 1.33, RXO is doing good in the industry, outperforming 65.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
RXO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -78.85%.
RXO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -55.10% yearly.
Looking at the last year, RXO shows a decrease in Revenue. The Revenue has decreased by -5.11% in the last year.
Measured over the past years, RXO shows a small growth in Revenue. The Revenue has been growing by 5.37% on average per year.
EPS 1Y (TTM)-78.85%
EPS 3Y-55.1%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-5.11%
Revenue growth 3Y5.37%
Revenue growth 5YN/A
Sales Q2Q%6.56%
3.2 Future
RXO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.23% yearly.
Based on estimates for the next years, RXO will show a quite strong growth in Revenue. The Revenue will grow by 17.85% on average per year.
EPS Next Y-59.62%
EPS Next 2Y32.09%
EPS Next 3Y43.74%
EPS Next 5Y43.23%
Revenue Next Year14.25%
Revenue Next 2Y31.33%
Revenue Next 3Y23.1%
Revenue Next 5Y17.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 235.27, RXO can be considered very expensive at the moment.
RXO's Price/Earnings ratio is a bit more expensive when compared to the industry. RXO is more expensive than 76.32% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, RXO is valued quite expensively.
With a Price/Forward Earnings ratio of 49.44, RXO can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RXO is valued a bit more expensive than 68.42% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RXO to the average of the S&P500 Index (24.44), we can say RXO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 235.27 | ||
| Fwd PE | 49.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RXO is valued a bit more expensive than 76.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 40.42 |
4.3 Compensation for Growth
RXO's earnings are expected to grow with 43.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.09%
EPS Next 3Y43.74%
5. Dividend
5.1 Amount
No dividends for RXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RXO INC
NYSE:RXO (1/21/2025, 8:25:06 PM)
After market: 25.88 0 (0%)25.88
+0.67 (+2.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners89.62%
Inst Owner Change0.04%
Ins Owners0.72%
Ins Owner Change37.14%
Market Cap4.16B
Analysts66.09
Price Target28.26 (9.2%)
Short Float %3.75%
Short Ratio5.75
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)19.15%
Min EPS beat(2)14.54%
Max EPS beat(2)23.76%
EPS beat(4)4
Avg EPS beat(4)27.34%
Min EPS beat(4)14.54%
Max EPS beat(4)49.75%
EPS beat(8)7
Avg EPS beat(8)73.14%
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)2.06%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)5.55%
Revenue beat(4)1
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-2.78%
Max Revenue beat(4)5.55%
Revenue beat(8)2
Avg Revenue beat(8)-2.3%
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)-0.42%
PT rev (3m)-0.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-53.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)54.6%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)18.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 235.27 | ||
| Fwd PE | 49.44 | ||
| P/S | 1.08 | ||
| P/FCF | N/A | ||
| P/OCF | 297.23 | ||
| P/B | 2.52 | ||
| P/tB | 69.35 | ||
| EV/EBITDA | 40.42 |
EPS(TTM)0.11
EY0.43%
EPS(NY)0.52
Fwd EY2.02%
FCF(TTM)-0.23
FCFYN/A
OCF(TTM)0.09
OCFY0.34%
SpS24.01
BVpS10.27
TBVpS0.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.75% | ||
| ROE | -15.92% | ||
| ROCE | 1.6% | ||
| ROIC | 1.23% | ||
| ROICexc | 1.26% | ||
| ROICexgc | 3.78% | ||
| OM | 1.01% | ||
| PM (TTM) | N/A | ||
| GM | 18.18% | ||
| FCFM | N/A |
ROA(3y)4%
ROA(5y)N/A
ROE(3y)10.12%
ROE(5y)N/A
ROIC(3y)10.24%
ROIC(5y)N/A
ROICexc(3y)10.75%
ROICexc(5y)N/A
ROICexgc(3y)28.31%
ROICexgc(5y)N/A
ROCE(3y)13.24%
ROCE(5y)N/A
ROICexcg growth 3Y-8.91%
ROICexcg growth 5YN/A
ROICexc growth 3Y-6.37%
ROICexc growth 5YN/A
OM growth 3Y-11.98%
OM growth 5YN/A
PM growth 3Y-57%
PM growth 5YN/A
GM growth 3Y0.26%
GM growth 5YN/A
F-Score4
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 73.91% | ||
| Cap/Sales | 1.32% | ||
| Interest Coverage | 1.44 | ||
| Cash Conversion | 12.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 2.58 |
F-Score4
WACC8.97%
ROIC/WACC0.14
Cap/Depr(3y)69.98%
Cap/Depr(5y)69.49%
Cap/Sales(3y)1.22%
Cap/Sales(5y)1.37%
Profit Quality(3y)325.78%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-78.85%
EPS 3Y-55.1%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-59.62%
EPS Next 2Y32.09%
EPS Next 3Y43.74%
EPS Next 5Y43.23%
Revenue 1Y (TTM)-5.11%
Revenue growth 3Y5.37%
Revenue growth 5YN/A
Sales Q2Q%6.56%
Revenue Next Year14.25%
Revenue Next 2Y31.33%
Revenue Next 3Y23.1%
Revenue Next 5Y17.85%
EBIT growth 1Y-57.61%
EBIT growth 3Y-7.26%
EBIT growth 5YN/A
EBIT Next Year75.5%
EBIT Next 3Y69.28%
EBIT Next 5Y48.2%
FCF growth 1Y-90.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-71.29%
OCF growth 3Y52.69%
OCF growth 5YN/A