XPO INC (XPO)
US9837931008 - Common Stock
XPO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 38 industry peers in the Ground Transportation industry. XPO scores excellent on profitability, but there are concerns on its financial health. XPO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year XPO was profitable.
XPO had a positive operating cash flow in the past year.
Each year in the past 5 years XPO has been profitable.
In the past 5 years XPO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of XPO (4.67%) is comparable to the rest of the industry.
XPO has a Return On Equity of 22.55%. This is amongst the best in the industry. XPO outperforms 81.58% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.08%, XPO is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for XPO is significantly below the industry average of 11.60%.
The 3 year average ROIC (5.87%) for XPO is below the current ROIC(8.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 22.55% | ||
| ROIC | 8.08% |
ROA(3y)5.67%
ROA(5y)4.03%
ROE(3y)36.75%
ROE(5y)25.4%
ROIC(3y)5.87%
ROIC(5y)4.33%
1.3 Margins
XPO has a Profit Margin (4.57%) which is comparable to the rest of the industry.
XPO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.75%, XPO is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
XPO's Operating Margin has improved in the last couple of years.
XPO's Gross Margin of 58.71% is fine compared to the rest of the industry. XPO outperforms 65.79% of its industry peers.
XPO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.75% | ||
| PM (TTM) | 4.57% | ||
| GM | 58.71% |
OM growth 3Y65.16%
OM growth 5Y10.82%
PM growth 3Y23.98%
PM growth 5Y1.58%
GM growth 3Y14.91%
GM growth 5Y3.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XPO is destroying value.
The number of shares outstanding for XPO has been increased compared to 1 year ago.
XPO has about the same amout of shares outstanding than it did 5 years ago.
XPO has a worse debt/assets ratio than last year.
2.2 Solvency
XPO has an Altman-Z score of 3.08. This indicates that XPO is financially healthy and has little risk of bankruptcy at the moment.
XPO has a better Altman-Z score (3.08) than 65.79% of its industry peers.
XPO has a Debt/Equity ratio of 2.04. This is a high value indicating a heavy dependency on external financing.
XPO has a Debt to Equity ratio of 2.04. This is in the lower half of the industry: XPO underperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.08 |
ROIC/WACC0.96
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.06 indicates that XPO should not have too much problems paying its short term obligations.
XPO's Current ratio of 1.06 is in line compared to the rest of the industry. XPO outperforms 47.37% of its industry peers.
XPO has a Quick Ratio of 1.06. This is a normal value and indicates that XPO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of XPO (1.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
XPO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.85%, which is quite good.
Measured over the past years, XPO shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.81% on average per year.
Looking at the last year, XPO shows a small growth in Revenue. The Revenue has grown by 5.96% in the last year.
XPO shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -14.83% yearly.
EPS 1Y (TTM)18.85%
EPS 3Y16.01%
EPS 5Y-1.81%
EPS Q2Q%15.91%
Revenue 1Y (TTM)5.96%
Revenue growth 3Y7.88%
Revenue growth 5Y-14.83%
Sales Q2Q%3.69%
3.2 Future
XPO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.53% yearly.
The Revenue is expected to grow by 7.13% on average over the next years.
EPS Next Y25.31%
EPS Next 2Y23.55%
EPS Next 3Y24.09%
EPS Next 5Y23.53%
Revenue Next Year4.75%
Revenue Next 2Y4.51%
Revenue Next 3Y5.01%
Revenue Next 5Y7.13%
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 40.24, XPO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, XPO is valued a bit more expensive than 60.53% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, XPO is valued a bit more expensive.
The Price/Forward Earnings ratio is 33.58, which means the current valuation is very expensive for XPO.
Based on the Price/Forward Earnings ratio, XPO is valued a bit more expensive than 60.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, XPO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.24 | ||
| Fwd PE | 33.58 |
4.2 Price Multiples
XPO's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.23 |
4.3 Compensation for Growth
XPO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of XPO may justify a higher PE ratio.
XPO's earnings are expected to grow with 24.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.59
PEG (5Y)N/A
EPS Next 2Y23.55%
EPS Next 3Y24.09%
5. Dividend
5.1 Amount
No dividends for XPO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
XPO INC
NYSE:XPO (11/21/2024, 8:04:00 PM)
After market: 149.69 0 (0%)149.69
+3.16 (+2.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.24 | ||
| Fwd PE | 33.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 22.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.75% | ||
| PM (TTM) | 4.57% | ||
| GM | 58.71% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)18.85%
EPS 3Y16.01%
EPS 5Y
EPS Q2Q%
EPS Next Y25.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.96%
Revenue growth 3Y7.88%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y