XPO INC (XPO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XPO - US9837931008 - Common Stock
132.53 USD
+6.89 (+5.48%)
132.53 USD
0 (0%)
Taking everything into account, XPO scores 5 out of 10 in our fundamental rating. XPO was compared to 43 industry peers in the Ground Transportation industry. While XPO has a great profitability rating, there are some minor concerns on its financial health. XPO is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
XPO had positive earnings in the past year.
XPO had a positive operating cash flow in the past year.
In the past 5 years XPO has always been profitable.
XPO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.05%, XPO is doing good in the industry, outperforming 67.44% of the companies in the same industry.
With an excellent Return On Equity value of 18.27%, XPO belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
XPO has a better Return On Invested Capital (8.40%) than 81.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for XPO is in line with the industry average of 7.13%.
The 3 year average ROIC (7.94%) for XPO is below the current ROIC(8.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 18.27% | ||
| ROIC | 8.4% |
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
Looking at the Profit Margin, with a value of 4.12%, XPO is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
In the last couple of years the Profit Margin of XPO has grown nicely.
The Operating Margin of XPO (8.73%) is better than 72.09% of its industry peers.
In the last couple of years the Operating Margin of XPO has grown nicely.
The Gross Margin of XPO (60.26%) is better than 69.77% of its industry peers.
In the last couple of years the Gross Margin of XPO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.73% | ||
| PM (TTM) | 4.12% | ||
| GM | 60.26% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
XPO has an Altman-Z score of 2.88. 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.
The Altman-Z score of XPO (2.88) is better than 67.44% of its industry peers.
The Debt to FCF ratio of XPO is 14.43, which is on the high side as it means it would take XPO, 14.43 years of fcf income to pay off all of its debts.
XPO has a Debt to FCF ratio of 14.43. This is in the better half of the industry: XPO outperforms 65.12% of its industry peers.
XPO has a Debt/Equity ratio of 1.77. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.77, XPO is doing worse than 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 14.43 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.75
WACC11.14%
2.3 Liquidity
A Current Ratio of 1.02 indicates that XPO should not have too much problems paying its short term obligations.
The Current ratio of XPO (1.02) is comparable to the rest of the industry.
A Quick Ratio of 1.02 indicates that XPO should not have too much problems paying its short term obligations.
The Quick ratio of XPO (1.02) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.54% over the past year.
The Earnings Per Share has been decreasing by -1.25% on average over the past years.
Looking at the last year, XPO shows a decrease in Revenue. The Revenue has decreased by -0.28% in the last year.
The Revenue has been decreasing by -5.45% on average over the past years.
EPS 1Y (TTM)0.54%
EPS 3Y-11.82%
EPS 5Y-1.25%
EPS Q2Q%4.9%
Revenue 1Y (TTM)-0.28%
Revenue growth 3Y3.87%
Revenue growth 5Y-5.45%
Sales Q2Q%2.83%
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 15.72% on average per year.
The Revenue is expected to grow by 4.50% on average over the next years.
EPS Next Y-3.02%
EPS Next 2Y8.9%
EPS Next 3Y13.37%
EPS Next 5Y15.72%
Revenue Next Year0.27%
Revenue Next 2Y2.07%
Revenue Next 3Y3.14%
Revenue Next 5Y4.5%
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
A Price/Earnings ratio of 35.44 indicates a quite expensive valuation of XPO.
The rest of the industry has a similar Price/Earnings ratio as XPO.
XPO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.45.
XPO is valuated quite expensively with a Price/Forward Earnings ratio of 29.10.
The rest of the industry has a similar Price/Forward Earnings ratio as XPO.
XPO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.44 | ||
| Fwd PE | 29.1 |
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 65.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 67.27 | ||
| EV/EBITDA | 15.3 |
4.3 Compensation for Growth
XPO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as XPO's earnings are expected to grow with 13.37% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.9%
EPS Next 3Y13.37%
5. Dividend
5.1 Amount
XPO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
132.53
+6.89 (+5.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners106.87%
Inst Owner Change1.67%
Ins Owners1.81%
Ins Owner Change-0.02%
Market Cap15.61B
Revenue(TTM)8.07B
Net Income(TTM)332.00M
Analysts82
Price Target151.73 (14.49%)
Short Float %7.98%
Short Ratio7.41
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)4.53%
Min EPS beat(2)4.12%
Max EPS beat(2)4.94%
EPS beat(4)4
Avg EPS beat(4)14.62%
Min EPS beat(4)4.12%
Max EPS beat(4)38.89%
EPS beat(8)8
Avg EPS beat(8)15.27%
EPS beat(12)12
Avg EPS beat(12)17.44%
EPS beat(16)16
Avg EPS beat(16)18.84%
Revenue beat(2)2
Avg Revenue beat(2)0.62%
Min Revenue beat(2)0.43%
Max Revenue beat(2)0.81%
Revenue beat(4)2
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.81%
Revenue beat(8)4
Avg Revenue beat(8)-0.3%
Revenue beat(12)6
Avg Revenue beat(12)-0.28%
Revenue beat(16)6
Avg Revenue beat(16)-17.95%
PT rev (1m)8.03%
PT rev (3m)8.44%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-2.96%
EPS NY rev (1m)0.82%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.44 | ||
| Fwd PE | 29.1 | ||
| P/S | 1.93 | ||
| P/FCF | 67.27 | ||
| P/OCF | 16.45 | ||
| P/B | 8.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.3 |
EPS(TTM)3.74
EY2.82%
EPS(NY)4.55
Fwd EY3.44%
FCF(TTM)1.97
FCFY1.49%
OCF(TTM)8.06
OCFY6.08%
SpS68.5
BVpS15.43
TBVpS-0.46
PEG (NY)N/A
PEG (5Y)N/A
Graham Number36.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 18.27% | ||
| ROCE | 10.79% | ||
| ROIC | 8.4% | ||
| ROICexc | 8.86% | ||
| ROICexgc | 12.7% | ||
| OM | 8.73% | ||
| PM (TTM) | 4.12% | ||
| GM | 60.26% | ||
| FCFM | 2.88% |
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%
ROICexgc growth 3Y29.62%
ROICexgc 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-Score5
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 14.43 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 139.77% | ||
| Cap/Sales | 8.89% | ||
| Interest Coverage | 3.02 | ||
| Cash Conversion | 77.98% | ||
| Profit Quality | 69.88% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.88 |
F-Score5
WACC11.14%
ROIC/WACC0.75
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)0.54%
EPS 3Y-11.82%
EPS 5Y-1.25%
EPS Q2Q%4.9%
EPS Next Y-3.02%
EPS Next 2Y8.9%
EPS Next 3Y13.37%
EPS Next 5Y15.72%
Revenue 1Y (TTM)-0.28%
Revenue growth 3Y3.87%
Revenue growth 5Y-5.45%
Sales Q2Q%2.83%
Revenue Next Year0.27%
Revenue Next 2Y2.07%
Revenue Next 3Y3.14%
Revenue Next 5Y4.5%
EBIT growth 1Y-0.56%
EBIT growth 3Y33.38%
EBIT growth 5Y6.62%
EBIT Next Year73.05%
EBIT Next 3Y29.52%
EBIT Next 5Y20.65%
FCF growth 1Y514.29%
FCF growth 3Y-65.23%
FCF growth 5Y-45.95%
OCF growth 1Y56.86%
OCF growth 3Y3.87%
OCF growth 5Y0.43%
XPO INC / XPO FAQ
Can you provide the ChartMill fundamental rating for XPO INC?
ChartMill assigns a fundamental rating of 5 / 10 to XPO.
What is the valuation status of XPO INC (XPO) stock?
ChartMill assigns a valuation rating of 3 / 10 to XPO INC (XPO). This can be considered as Overvalued.
What is the profitability of XPO stock?
XPO INC (XPO) has a profitability rating of 8 / 10.
What is the valuation of XPO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for XPO INC (XPO) is 35.44 and the Price/Book (PB) ratio is 8.59.
Can you provide the financial health for XPO stock?
The financial health rating of XPO INC (XPO) is 4 / 10.