RXO INC (RXO) Stock Fundamental Analysis
NYSE:RXO - New York Stock Exchange, Inc. - US74982T1034 - Common Stock - Currency: USD
Overall RXO gets a fundamental rating of 3 out of 10. We evaluated RXO against 503 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
RXO had positive earnings in the past year.
RXO had a negative operating cash flow in the past year.
Of the past 5 years RXO 4 years were profitable.
RXO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RXO has a worse Return On Assets (-9.26%) than 85.00% of its industry peers.
RXO's Return On Equity of -19.28% is on the low side compared to the rest of the industry. RXO is outperformed by 80.00% of its industry peers.
RXO's Return On Invested Capital of 0.68% is on the low side compared to the rest of the industry. RXO is outperformed by 65.00% of its industry peers.
RXO had an Average Return On Invested Capital over the past 3 years of 6.68%. This is significantly below the industry average of 13.68%.
The last Return On Invested Capital (0.68%) 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 | -9.26% | ||
| ROE | -19.28% | ||
| ROIC | 0.68% |
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 (0.39%) is worse than 65.00% of its industry peers.
In the last couple of years the Operating Margin of RXO has declined.
RXO's Gross Margin of 16.84% is on the low side compared to the rest of the industry. RXO is outperformed by 75.00% 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 | 0.39% | ||
| PM (TTM) | N/A | ||
| GM | 16.84% |
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
RXO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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
RXO has an Altman-Z score of 2.49. 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 has a Altman-Z score (2.49) which is in line with its industry peers.
A Debt/Equity ratio of 0.24 indicates that RXO is not too dependend on debt financing.
RXO's Debt to Equity ratio of 0.24 is in line compared to the rest of the industry. RXO outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.49 |
ROIC/WACC0.07
WACC9.5%
2.3 Liquidity
RXO has a Current Ratio of 1.30. This is a normal value and indicates that RXO is financially healthy and should not expect problems in meeting its short term obligations.
RXO's Current ratio of 1.30 is fine compared to the rest of the industry. RXO outperforms 65.00% of its industry peers.
A Quick Ratio of 1.30 indicates that RXO should not have too much problems paying its short term obligations.
RXO has a Quick ratio of 1.30. This is in the better half of the industry: RXO outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
RXO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.25%.
The Revenue has grown by 32.38% in the past year. This is a very strong growth!
RXO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.69% yearly.
EPS 1Y (TTM)-31.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)32.38%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%56.96%
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 99.34% 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 Y48.61%
EPS Next 2Y107.49%
EPS Next 3Y99.34%
EPS Next 5YN/A
Revenue Next Year34.35%
Revenue Next 2Y20.08%
Revenue Next 3Y15.82%
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
Based on the Price/Earnings ratio of 153.09, the valuation of RXO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RXO indicates a slightly more expensive valuation: RXO is more expensive than 70.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. RXO is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 35.56, which means the current valuation is very expensive for RXO.
Based on the Price/Forward Earnings ratio, RXO is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
RXO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 153.09 | ||
| Fwd PE | 35.56 |
4.2 Price Multiples
70.00% 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 | 25.6 |
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 99.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.15
PEG (5Y)N/A
EPS Next 2Y107.49%
EPS Next 3Y99.34%
5. Dividend
5.1 Amount
RXO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.84
+0.13 (+0.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners109.35%
Inst Owner Change4.68%
Ins Owners1.28%
Ins Owner Change2.7%
Market Cap2.76B
Analysts64.8
Price Target16.8 (-0.24%)
Short Float %5.44%
Short Ratio4.67
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)-28.72%
Min EPS beat(2)-59.87%
Max EPS beat(2)2.42%
EPS beat(4)3
Avg EPS beat(4)-4.78%
Min EPS beat(4)-59.87%
Max EPS beat(4)23.76%
EPS beat(8)6
Avg EPS beat(8)56.26%
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)-2.93%
Min Revenue beat(2)-5.04%
Max Revenue beat(2)-0.83%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)5.55%
Revenue beat(8)2
Avg Revenue beat(8)-1.49%
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)-16.17%
PT rev (3m)-26.98%
EPS NQ rev (1m)-3.15%
EPS NQ rev (3m)-53.52%
EPS NY rev (1m)-8.3%
EPS NY rev (3m)-43.78%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-9.32%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-8.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 153.09 | ||
| Fwd PE | 35.56 | ||
| P/S | 0.54 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.6 |
EPS(TTM)0.11
EY0.65%
EPS(NY)0.47
Fwd EY2.81%
FCF(TTM)-0.43
FCFYN/A
OCF(TTM)-0.13
OCFYN/A
SpS30.93
BVpS9.68
TBVpS-0.13
PEG (NY)3.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.26% | ||
| ROE | -19.28% | ||
| ROCE | 0.85% | ||
| ROIC | 0.68% | ||
| ROICexc | 0.68% | ||
| ROICexgc | 2.21% | ||
| OM | 0.39% | ||
| PM (TTM) | N/A | ||
| GM | 16.84% | ||
| 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 Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.15 | ||
| Cap/Depr | 47.57% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 0.71 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.49 |
F-Score3
WACC9.5%
ROIC/WACC0.07
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)-31.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y48.61%
EPS Next 2Y107.49%
EPS Next 3Y99.34%
EPS Next 5YN/A
Revenue 1Y (TTM)32.38%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%56.96%
Revenue Next Year34.35%
Revenue Next 2Y20.08%
Revenue Next 3Y15.82%
Revenue Next 5Y12.22%
EBIT growth 1Y-58.33%
EBIT growth 3Y-46.51%
EBIT growth 5Y-20.08%
EBIT Next Year243.77%
EBIT Next 3Y98.25%
EBIT Next 5Y56.44%
FCF growth 1Y-136.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-108.43%
OCF growth 3YN/A
OCF growth 5YN/A