RXO INC (RXO) Stock Fundamental Analysis
NYSE:RXO - New York Stock Exchange, Inc. - US74982T1034 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to RXO. RXO was compared to 39 industry peers in the Ground Transportation industry. The financial health of RXO is average, but 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.
In the past year RXO has reported a negative cash flow from operations.
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's Return On Assets of -8.34% is on the low side compared to the rest of the industry. RXO is outperformed by 84.21% of its industry peers.
RXO has a Return On Equity of -17.63%. This is in the lower half of the industry: RXO underperforms 78.95% of its industry peers.
The Return On Invested Capital of RXO (1.01%) is worse than 68.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RXO is in line with the industry average of 7.67%.
The last Return On Invested Capital (1.01%) 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 | -8.34% | ||
| ROE | -17.63% | ||
| ROIC | 1.01% |
ROA(3y)-1.2%
ROA(5y)1.19%
ROE(3y)-0.43%
ROE(5y)3.35%
ROIC(3y)6.68%
ROIC(5y)7.55%
1.3 Margins
RXO's Operating Margin of 0.66% is on the low side compared to the rest of the industry. RXO is outperformed by 73.68% of its industry peers.
In the last couple of years the Operating Margin of RXO has declined.
Looking at the Gross Margin, with a value of 17.21%, RXO is doing worse than 78.95% of the companies in the same industry.
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 | 0.66% | ||
| PM (TTM) | N/A | ||
| GM | 17.21% |
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
RXO has an Altman-Z score of 2.48. 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 2.48 is in line compared to the rest of the industry. RXO outperforms 52.63% of its industry peers.
RXO has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
RXO has a better Debt to Equity ratio (0.22) than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.48 |
ROIC/WACC0.11
WACC9.43%
2.3 Liquidity
RXO has a Current Ratio of 1.26. 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 better Current ratio (1.26) than 63.16% of its industry peers.
A Quick Ratio of 1.26 indicates that RXO should not have too much problems paying its short term obligations.
RXO has a better Quick ratio (1.26) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for RXO have decreased strongly by -63.33% in the last year.
Looking at the last year, RXO shows a quite strong growth in Revenue. The Revenue has grown by 15.86% in the last year.
The Revenue has been growing slightly by 7.69% on average over the past years.
EPS 1Y (TTM)-63.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)15.86%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%70.45%
3.2 Future
RXO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 111.97% yearly.
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 Y184.54%
EPS Next 2Y147.06%
EPS Next 3Y111.97%
EPS Next 5YN/A
Revenue Next Year49.87%
Revenue Next 2Y28.02%
Revenue Next 3Y22.52%
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
The Price/Earnings ratio is 183.09, which means the current valuation is very expensive for RXO.
RXO's Price/Earnings ratio is a bit more expensive when compared to the industry. RXO is more expensive than 73.68% of the companies in the same industry.
When comparing the Price/Earnings ratio of RXO to the average of the S&P500 Index (29.63), we can say RXO is valued expensively.
Based on the Price/Forward Earnings ratio of 64.35, the valuation of RXO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RXO indicates a slightly more expensive valuation: RXO is more expensive than 68.42% of the companies listed in the same industry.
RXO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 183.09 | ||
| Fwd PE | 64.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RXO is valued a bit more expensive than the industry average as 73.68% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 31.95 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RXO's earnings are expected to grow with 111.97% in the coming years.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y147.06%
EPS Next 3Y111.97%
5. Dividend
5.1 Amount
No dividends for RXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.14
-0.81 (-3.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners105.65%
Inst Owner Change4.4%
Ins Owners1.13%
Ins Owner Change2.26%
Market Cap3.27B
Analysts66.09
Price Target23.14 (14.9%)
Short Float %3.9%
Short Ratio5.26
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)8.48%
Min EPS beat(2)2.42%
Max EPS beat(2)14.54%
EPS beat(4)4
Avg EPS beat(4)15.51%
Min EPS beat(4)2.42%
Max EPS beat(4)23.76%
EPS beat(8)7
Avg EPS beat(8)71%
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)2.36%
Min Revenue beat(2)-0.83%
Max Revenue beat(2)5.55%
Revenue beat(4)1
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-2.75%
Max Revenue beat(4)5.55%
Revenue beat(8)2
Avg Revenue beat(8)-1.66%
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)-3.4%
PT rev (3m)-5.85%
EPS NQ rev (1m)-188.64%
EPS NQ rev (3m)-122.34%
EPS NY rev (1m)-40.2%
EPS NY rev (3m)-46.85%
Revenue NQ rev (1m)-5.5%
Revenue NQ rev (3m)51.99%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)18.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 183.09 | ||
| Fwd PE | 64.35 | ||
| P/S | 0.72 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.95 |
EPS(TTM)0.11
EY0.55%
EPS(NY)0.31
Fwd EY1.55%
FCF(TTM)-0.35
FCFYN/A
OCF(TTM)-0.07
OCFYN/A
SpS28
BVpS9.95
TBVpS-0.04
PEG (NY)0.99
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.34% | ||
| ROE | -17.63% | ||
| ROCE | 1.28% | ||
| ROIC | 1.01% | ||
| ROICexc | 1.02% | ||
| ROICexgc | 3.41% | ||
| OM | 0.66% | ||
| PM (TTM) | N/A | ||
| GM | 17.21% | ||
| FCFM | N/A |
ROA(3y)-1.2%
ROA(5y)1.19%
ROE(3y)-0.43%
ROE(5y)3.35%
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-52.27%
ROICexcg growth 5YN/A
ROICexc growth 3Y-56.77%
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 Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 51.72% | ||
| Cap/Sales | 0.99% | ||
| Interest Coverage | 1.11 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 2.48 |
F-Score3
WACC9.43%
ROIC/WACC0.11
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)-63.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y184.54%
EPS Next 2Y147.06%
EPS Next 3Y111.97%
EPS Next 5YN/A
Revenue 1Y (TTM)15.86%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%70.45%
Revenue Next Year49.87%
Revenue Next 2Y28.02%
Revenue Next 3Y22.52%
Revenue Next 5Y12.22%
EBIT growth 1Y-55.22%
EBIT growth 3Y-46.51%
EBIT growth 5Y-20.08%
EBIT Next Year401.62%
EBIT Next 3Y113.87%
EBIT Next 5Y56.44%
FCF growth 1Y-328%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-113.48%
OCF growth 3YN/A
OCF growth 5YN/A