RXO INC (RXO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RXO - US74982T1034 - Common Stock
13.22 USD
+0.21 (+1.61%)
13.22 USD
0 (0%)
Taking everything into account, RXO scores 3 out of 10 in our fundamental rating. RXO was compared to 43 industry peers in the Ground Transportation industry. While RXO seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
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
RXO has a worse Return On Assets (-2.47%) than 62.79% of its industry peers.
RXO has a Return On Equity of -5.00%. This is in the lower half of the industry: RXO underperforms 65.12% of its industry peers.
The Return On Invested Capital of RXO (0.38%) is worse than 65.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RXO is in line with the industry average of 6.88%.
The last Return On Invested Capital (0.38%) for RXO is well below the 3 year average (6.68%), which needs to be investigated, but indicates that RXO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.47% | ||
| ROE | -5% | ||
| ROIC | 0.38% |
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
RXO has a worse Operating Margin (0.19%) than 65.12% of its industry peers.
RXO's Operating Margin has declined in the last couple of years.
RXO has a worse Gross Margin (16.53%) than 69.77% 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 | 0.19% | ||
| PM (TTM) | N/A | ||
| GM | 16.53% |
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.
Compared to 1 year ago, RXO has more shares outstanding
The debt/assets ratio for RXO has been reduced compared to a year ago.
2.2 Solvency
RXO has an Altman-Z score of 2.62. This is not the best score and indicates that RXO is in the grey zone with still only limited risk for bankruptcy at the moment.
RXO's Altman-Z score of 2.62 is fine compared to the rest of the industry. RXO outperforms 60.47% of its industry peers.
RXO has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.24, RXO is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.62 |
ROIC/WACC0.03
WACC11.3%
2.3 Liquidity
A Current Ratio of 1.32 indicates that RXO should not have too much problems paying its short term obligations.
RXO has a Current ratio of 1.32. This is in the better half of the industry: RXO outperforms 60.47% of its industry peers.
A Quick Ratio of 1.32 indicates that RXO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.32, RXO is doing good in the industry, outperforming 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The earnings per share for RXO have decreased strongly by -27.27% in the last year.
Looking at the last year, RXO shows a very strong growth in Revenue. The Revenue has grown by 53.85%.
The Revenue has been growing slightly by 7.69% on average over the past years.
EPS 1Y (TTM)-27.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-80%
Revenue 1Y (TTM)53.85%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%36.63%
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 81.00% 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 Y6.55%
EPS Next 2Y84.45%
EPS Next 3Y81%
EPS Next 5YN/A
Revenue Next Year29.27%
Revenue Next 2Y17.22%
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
Based on the Price/Earnings ratio of 165.25, the valuation of RXO can be described as expensive.
RXO's Price/Earnings ratio is a bit more expensive when compared to the industry. RXO is more expensive than 62.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. RXO is valued rather expensively when compared to this.
RXO is valuated quite expensively with a Price/Forward Earnings ratio of 35.32.
RXO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.59. RXO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 165.25 | ||
| Fwd PE | 35.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RXO indicates a slightly more expensive valuation: RXO is more expensive than 60.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RXO's earnings are expected to grow with 81.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)25.21
PEG (5Y)N/A
EPS Next 2Y84.45%
EPS Next 3Y81%
5. Dividend
5.1 Amount
No dividends for RXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.22
+0.21 (+1.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners106.46%
Inst Owner Change3.78%
Ins Owners0.65%
Ins Owner Change0.09%
Market Cap2.17B
Revenue(TTM)5.94B
Net Income(TTM)-79.00M
Analysts64.62
Price Target15.77 (19.29%)
Short Float %7.65%
Short Ratio5.68
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)14.37%
Min EPS beat(2)-72.3%
Max EPS beat(2)101.04%
EPS beat(4)2
Avg EPS beat(4)-7.18%
Min EPS beat(4)-72.3%
Max EPS beat(4)101.04%
EPS beat(8)6
Avg EPS beat(8)10.08%
EPS beat(12)9
Avg EPS beat(12)46.37%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.1%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.8%
Revenue beat(4)0
Avg Revenue beat(4)-2.52%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)-0.83%
Revenue beat(8)1
Avg Revenue beat(8)-1.44%
Revenue beat(12)2
Avg Revenue beat(12)-2.37%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.53%
PT rev (3m)-7.15%
EPS NQ rev (1m)-97.24%
EPS NQ rev (3m)-97.48%
EPS NY rev (1m)-3.08%
EPS NY rev (3m)-18.76%
Revenue NQ rev (1m)-3.68%
Revenue NQ rev (3m)-7.79%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 165.25 | ||
| Fwd PE | 35.32 | ||
| P/S | 0.36 | ||
| P/FCF | N/A | ||
| P/OCF | 58.59 | ||
| P/B | 1.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.03 |
EPS(TTM)0.08
EY0.61%
EPS(NY)0.37
Fwd EY2.83%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)0.23
OCFY1.71%
SpS36.22
BVpS9.63
TBVpS-0.04
PEG (NY)25.21
PEG (5Y)N/A
Graham Number4.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.47% | ||
| ROE | -5% | ||
| ROCE | 0.48% | ||
| ROIC | 0.38% | ||
| ROICexc | 0.38% | ||
| ROICexgc | 1.27% | ||
| OM | 0.19% | ||
| PM (TTM) | N/A | ||
| GM | 16.53% | ||
| 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 Turnover1.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 45.45% | ||
| Cap/Sales | 0.93% | ||
| Interest Coverage | 0.35 | ||
| Cash Conversion | 28.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.62 |
F-Score4
WACC11.3%
ROIC/WACC0.03
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)-27.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-80%
EPS Next Y6.55%
EPS Next 2Y84.45%
EPS Next 3Y81%
EPS Next 5YN/A
Revenue 1Y (TTM)53.85%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%36.63%
Revenue Next Year29.27%
Revenue Next 2Y17.22%
Revenue Next 3Y13.3%
Revenue Next 5Y12.22%
EBIT growth 1Y-71.79%
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-121.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-74.66%
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.