XPO INC (XPO)
US9837931008 - Common Stock
We assign a fundamental rating of 4 out of 10 to XPO. XPO was compared to 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.
In the past year XPO had a positive cash flow from operations.
XPO had positive earnings in each of the past 5 years.
In the past 5 years XPO always reported a positive cash flow from operatings.
1.2 Ratios
XPO has a Return On Assets (4.67%) which is in line with its industry peers.
XPO has a better Return On Equity (22.55%) than 81.58% of its industry peers.
XPO has a better Return On Invested Capital (8.08%) than 65.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for XPO is significantly below the industry average of 11.62%.
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
The Profit Margin of XPO (4.57%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of XPO has grown nicely.
With a decent Operating Margin value of 8.75%, XPO is doing good in 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 has a better Gross Margin (58.71%) than 65.79% of its industry peers.
In the last couple of years the Gross Margin of XPO has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XPO is destroying value.
Compared to 1 year ago, XPO has more shares outstanding
Compared to 5 years ago, XPO has about the same amount of shares outstanding.
Compared to 1 year ago, XPO has a worse debt to assets ratio.
2.2 Solvency
XPO has an Altman-Z score of 2.86. This is not the best score and indicates that XPO is in the grey zone with still only limited risk for bankruptcy at the moment.
XPO's Altman-Z score of 2.86 is fine compared to the rest of the industry. XPO outperforms 60.53% of its industry peers.
A Debt/Equity ratio of 2.04 is on the high side and indicates that XPO has dependencies on debt financing.
With a Debt to Equity ratio value of 2.04, XPO is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.86 |
ROIC/WACC0.97
WACC8.29%
2.3 Liquidity
XPO has a Current 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.
XPO has a Current ratio (1.06) which is comparable to the rest of the industry.
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.
XPO has a Quick ratio (1.06) which 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
The Earnings Per Share has grown by an nice 18.85% over the past year.
The Earnings Per Share has been decreasing by -1.81% on average over the past years.
XPO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.96%.
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
The Earnings Per Share is expected to grow by 23.53% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.13% on average over the next years.
EPS Next Y23.65%
EPS Next 2Y23.77%
EPS Next 3Y24.75%
EPS Next 5Y23.53%
Revenue Next Year4.58%
Revenue Next 2Y4.84%
Revenue Next 3Y5.29%
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
XPO is valuated quite expensively with a Price/Earnings ratio of 35.89.
The rest of the industry has a similar Price/Earnings ratio as XPO.
When comparing the Price/Earnings ratio of XPO to the average of the S&P500 Index (30.20), we can say XPO is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 29.85, the valuation of XPO can be described as expensive.
XPO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of XPO to the average of the S&P500 Index (23.28), we can say XPO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.89 | ||
| Fwd PE | 29.85 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as XPO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.32 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
XPO has a very decent profitability rating, which may justify a higher PE ratio.
XPO's earnings are expected to grow with 24.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)N/A
EPS Next 2Y23.77%
EPS Next 3Y24.75%
5. Dividend
5.1 Amount
No dividends for XPO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
XPO INC
NYSE:XPO (11/4/2024, 8:04:00 PM)
After market: 133.5 0 (0%)133.5
+3.31 (+2.54%)
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 Cap15.54B
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)
Max EPS beat(2)
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)
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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 | 35.89 | ||
| Fwd PE | 29.85 | ||
| 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)1.52
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 Y23.65%
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