RXO INC (RXO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RXO - US74982T1034 - Common Stock
13.56 USD
-0.66 (-4.64%)
13.56 USD
0 (0%)
RXO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 42 industry peers in the Ground Transportation industry. The financial health of RXO is average, but 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
RXO had positive earnings in the past year.
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
The Return On Assets of RXO (-2.47%) is worse than 62.79% of its industry peers.
Looking at the Return On Equity, with a value of -5.00%, RXO is doing worse than 62.79% of the companies in the same industry.
RXO has a worse Return On Invested Capital (0.38%) 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 6.83%.
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
Looking at the Operating Margin, with a value of 0.19%, RXO is doing worse than 65.12% of the companies in the same industry.
In the last couple of years the Operating Margin of RXO has declined.
RXO's Gross Margin of 16.53% is on the low side compared to the rest of the industry. RXO is outperformed by 69.77% of its industry peers.
RXO's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RXO is destroying value.
The number of shares outstanding for RXO has been increased compared to 1 year ago.
Compared to 1 year ago, RXO has an improved debt to assets ratio.
2.2 Solvency
RXO has an Altman-Z score of 2.65. 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 2.65 is fine compared to the rest of the industry. RXO outperforms 60.47% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that RXO is not too dependend on debt financing.
RXO has a better Debt to Equity ratio (0.24) than 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.65 |
ROIC/WACC0.04
WACC10.13%
2.3 Liquidity
RXO has a Current Ratio of 1.32. This is a normal value and indicates that RXO is financially healthy and should not expect problems in meeting 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.
RXO has a Quick Ratio of 1.32. This is a normal value and indicates that RXO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of RXO (1.32) is better than 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
RXO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.27%.
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 68.51% 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 Y-79.91%
EPS Next 2Y32.29%
EPS Next 3Y68.51%
EPS Next 5YN/A
Revenue Next Year27.04%
Revenue Next 2Y14.68%
Revenue Next 3Y11.77%
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
RXO is valuated quite expensively with a Price/Earnings ratio of 169.50.
RXO's Price/Earnings ratio is a bit more expensive when compared to the industry. RXO is more expensive than 65.12% of the companies in the same industry.
RXO is valuated expensively when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 70.44, the valuation of RXO can be described as expensive.
Based on the Price/Forward Earnings ratio, RXO is valued a bit more expensive than 62.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, RXO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 169.5 | ||
| Fwd PE | 70.44 |
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 | 19.72 |
4.3 Compensation for Growth
A more expensive valuation may be justified as RXO's earnings are expected to grow with 68.51% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.29%
EPS Next 3Y68.51%
5. Dividend
5.1 Amount
No dividends for RXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
13.56
-0.66 (-4.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners110.19%
Inst Owner Change3.74%
Ins Owners0.65%
Ins Owner Change0.12%
Market Cap2.23B
Revenue(TTM)5.94B
Net Income(TTM)-79.00M
Analysts66.92
Price Target15.77 (16.3%)
Short Float %7.37%
Short Ratio5.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-7.42%
PT rev (3m)-7.04%
EPS NQ rev (1m)-1166%
EPS NQ rev (3m)-125.18%
EPS NY rev (1m)-81.15%
EPS NY rev (3m)-84.68%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-6.14%
Revenue NY rev (1m)-1.72%
Revenue NY rev (3m)-2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 169.5 | ||
| Fwd PE | 70.44 | ||
| P/S | 0.37 | ||
| P/FCF | N/A | ||
| P/OCF | 60.14 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.72 |
EPS(TTM)0.08
EY0.59%
EPS(NY)0.19
Fwd EY1.42%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)0.23
OCFY1.66%
SpS36.2
BVpS9.63
TBVpS-0.04
PEG (NY)N/A
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 | 2.65 |
F-Score4
WACC10.13%
ROIC/WACC0.04
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 Y-79.91%
EPS Next 2Y32.29%
EPS Next 3Y68.51%
EPS Next 5YN/A
Revenue 1Y (TTM)53.85%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%36.63%
Revenue Next Year27.04%
Revenue Next 2Y14.68%
Revenue Next 3Y11.77%
Revenue Next 5Y12.22%
EBIT growth 1Y-71.79%
EBIT growth 3Y-46.51%
EBIT growth 5Y-20.08%
EBIT Next Year170.25%
EBIT Next 3Y75.98%
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.