XPO INC (XPO) Stock Fundamental Analysis
USA - NYSE:XPO - US9837931008 - Common Stock
135.4 USD
+1.48 (+1.11%)
135.4 USD
0 (0%)
Overall XPO gets a fundamental rating of 5 out of 10. We evaluated XPO against 42 industry peers in the Ground Transportation industry. XPO has an excellent profitability rating, but there are some minor concerns on its financial health. XPO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year XPO was profitable.
In the past year XPO had a positive cash flow from operations.
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
XPO has a Return On Assets of 4.24%. This is in the better half of the industry: XPO outperforms 64.29% of its industry peers.
XPO has a Return On Equity of 19.37%. This is amongst the best in the industry. XPO outperforms 80.95% of its industry peers.
XPO's Return On Invested Capital of 8.21% is fine compared to the rest of the industry. XPO outperforms 71.43% of its industry peers.
XPO had an Average Return On Invested Capital over the past 3 years of 7.94%. This is in line with the industry average of 7.92%.
The last Return On Invested Capital (8.21%) for XPO is above the 3 year average (7.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 19.37% | ||
| ROIC | 8.21% |
ROA(3y)6.05%
ROA(5y)4.5%
ROE(3y)34.97%
ROE(5y)27.47%
ROIC(3y)7.94%
ROIC(5y)5.64%
1.3 Margins
XPO's Profit Margin of 4.31% is fine compared to the rest of the industry. XPO outperforms 69.05% of its industry peers.
XPO's Profit Margin has improved in the last couple of years.
XPO has a better Operating Margin (8.60%) than 71.43% of its industry peers.
XPO's Operating Margin has improved in the last couple of years.
XPO's Gross Margin of 59.98% is fine compared to the rest of the industry. XPO outperforms 69.05% of its industry peers.
In the last couple of years the Gross Margin of XPO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.6% | ||
| PM (TTM) | 4.31% | ||
| GM | 59.98% |
OM growth 3Y28.41%
OM growth 5Y12.76%
PM growth 3Y0.91%
PM growth 5Y6.2%
GM growth 3Y17.98%
GM growth 5Y13.75%
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 more shares outstanding than it did 5 years ago.
XPO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.90 indicates that XPO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.90, XPO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
The Debt to FCF ratio of XPO is 22.27, which is on the high side as it means it would take XPO, 22.27 years of fcf income to pay off all of its debts.
XPO's Debt to FCF ratio of 22.27 is fine compared to the rest of the industry. XPO outperforms 64.29% of its industry peers.
A Debt/Equity ratio of 1.88 is on the high side and indicates that XPO has dependencies on debt financing.
With a Debt to Equity ratio value of 1.88, XPO is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 22.27 | ||
| Altman-Z | 2.9 |
ROIC/WACC0.88
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.02 indicates that XPO should not have too much problems paying its short term obligations.
XPO's Current ratio of 1.02 is in line compared to the rest of the industry. XPO outperforms 50.00% of its industry peers.
XPO has a Quick Ratio of 1.02. This is a normal value and indicates that XPO is financially healthy and should not expect problems in meeting its short term obligations.
XPO has a Quick ratio (1.02) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
XPO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.07%.
Measured over the past years, XPO shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.25% on average per year.
XPO shows a decrease in Revenue. In the last year, the revenue decreased by -0.10%.
The Revenue has been decreasing by -5.45% on average over the past years.
EPS 1Y (TTM)3.07%
EPS 3Y-11.82%
EPS 5Y-1.25%
EPS Q2Q%-6.25%
Revenue 1Y (TTM)-0.1%
Revenue growth 3Y3.87%
Revenue growth 5Y-5.45%
Sales Q2Q%0.05%
3.2 Future
Based on estimates for the next years, XPO will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.04% on average per year.
XPO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.48% yearly.
EPS Next Y-3.33%
EPS Next 2Y10.45%
EPS Next 3Y13.69%
EPS Next 5Y16.04%
Revenue Next Year-0.06%
Revenue Next 2Y1.97%
Revenue Next 3Y3.05%
Revenue Next 5Y4.48%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 36.69, which means the current valuation is very expensive for XPO.
Compared to the rest of the industry, the Price/Earnings ratio of XPO is on the same level as its industry peers.
XPO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.20.
With a Price/Forward Earnings ratio of 28.90, XPO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XPO is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, XPO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.69 | ||
| Fwd PE | 28.9 |
4.2 Price Multiples
XPO's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XPO indicates a somewhat cheap valuation: XPO is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 104.21 | ||
| EV/EBITDA | 16.02 |
4.3 Compensation for Growth
The excellent profitability rating of XPO may justify a higher PE ratio.
A more expensive valuation may be justified as XPO's earnings are expected to grow with 13.69% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.45%
EPS Next 3Y13.69%
5. Dividend
5.1 Amount
No dividends for XPO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
135.4
+1.48 (+1.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners105.91%
Inst Owner Change-0.17%
Ins Owners1.81%
Ins Owner Change0.11%
Market Cap15.94B
Analysts82
Price Target140.36 (3.66%)
Short Float %8.66%
Short Ratio8.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.74%
Min EPS beat(2)4.94%
Max EPS beat(2)10.54%
EPS beat(4)4
Avg EPS beat(4)16.4%
Min EPS beat(4)4.94%
Max EPS beat(4)38.89%
EPS beat(8)8
Avg EPS beat(8)19.47%
EPS beat(12)12
Avg EPS beat(12)17.63%
EPS beat(16)15
Avg EPS beat(16)18.56%
Revenue beat(2)1
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)0.43%
Revenue beat(4)2
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.64%
Revenue beat(8)4
Avg Revenue beat(8)-0.18%
Revenue beat(12)5
Avg Revenue beat(12)-3.49%
Revenue beat(16)6
Avg Revenue beat(16)-17.72%
PT rev (1m)0.32%
PT rev (3m)9.07%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-4.11%
EPS NY rev (1m)1.29%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.69 | ||
| Fwd PE | 28.9 | ||
| P/S | 1.99 | ||
| P/FCF | 104.21 | ||
| P/OCF | 18.96 | ||
| P/B | 8.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.02 |
EPS(TTM)3.69
EY2.73%
EPS(NY)4.68
Fwd EY3.46%
FCF(TTM)1.3
FCFY0.96%
OCF(TTM)7.14
OCFY5.27%
SpS68.01
BVpS15.12
TBVpS-0.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 19.37% | ||
| ROCE | 10.54% | ||
| ROIC | 8.21% | ||
| ROICexc | 8.5% | ||
| ROICexgc | 12.14% | ||
| OM | 8.6% | ||
| PM (TTM) | 4.31% | ||
| GM | 59.98% | ||
| FCFM | 1.91% |
ROA(3y)6.05%
ROA(5y)4.5%
ROE(3y)34.97%
ROE(5y)27.47%
ROIC(3y)7.94%
ROIC(5y)5.64%
ROICexc(3y)8.52%
ROICexc(5y)6.05%
ROICexgc(3y)13.48%
ROICexgc(5y)9.52%
ROCE(3y)10.2%
ROCE(5y)7.25%
ROICexcg growth 3Y29.62%
ROICexcg growth 5Y10.06%
ROICexc growth 3Y32.6%
ROICexc growth 5Y19.05%
OM growth 3Y28.41%
OM growth 5Y12.76%
PM growth 3Y0.91%
PM growth 5Y6.2%
GM growth 3Y17.98%
GM growth 5Y13.75%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 22.27 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 136.24% | ||
| Cap/Sales | 8.59% | ||
| Interest Coverage | 2.88 | ||
| Cash Conversion | 70.44% | ||
| Profit Quality | 44.35% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.9 |
F-Score6
WACC9.36%
ROIC/WACC0.88
Cap/Depr(3y)216.26%
Cap/Depr(5y)156.91%
Cap/Sales(3y)12.11%
Cap/Sales(5y)8.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.07%
EPS 3Y-11.82%
EPS 5Y-1.25%
EPS Q2Q%-6.25%
EPS Next Y-3.33%
EPS Next 2Y10.45%
EPS Next 3Y13.69%
EPS Next 5Y16.04%
Revenue 1Y (TTM)-0.1%
Revenue growth 3Y3.87%
Revenue growth 5Y-5.45%
Sales Q2Q%0.05%
Revenue Next Year-0.06%
Revenue Next 2Y1.97%
Revenue Next 3Y3.05%
Revenue Next 5Y4.48%
EBIT growth 1Y1.32%
EBIT growth 3Y33.38%
EBIT growth 5Y6.62%
EBIT Next Year72.78%
EBIT Next 3Y29%
EBIT Next 5Y20.76%
FCF growth 1Y488.46%
FCF growth 3Y-65.23%
FCF growth 5Y-45.95%
OCF growth 1Y32.44%
OCF growth 3Y3.87%
OCF growth 5Y0.43%