XPO INC (XPO) Stock Fundamental Analysis
USA - NYSE:XPO - US9837931008 - Common Stock
136 USD
+2.21 (+1.65%)
136 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to XPO. XPO was compared to 42 industry peers in the Ground Transportation industry. XPO scores excellent on profitability, 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.
XPO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.24%, XPO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
XPO has a Return On Equity of 19.37%. This is amongst the best in the industry. XPO outperforms 83.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.21%, XPO is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
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 7.76%.
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
With a decent Profit Margin value of 4.31%, XPO is doing good in the industry, outperforming 69.05% of the companies in the same industry.
In the last couple of years the Profit Margin of XPO has grown nicely.
With a decent Operating Margin value of 8.60%, XPO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
XPO's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 59.98%, XPO is doing good in the industry, outperforming 69.05% of the companies in the same industry.
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.
XPO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for XPO has been increased compared to 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.
With a decent Altman-Z score value of 2.88, XPO is doing good in the industry, outperforming 69.05% of the companies in the same industry.
XPO has a debt to FCF ratio of 22.27. This is a negative value and a sign of low solvency as XPO would need 22.27 years to pay back of all of its debts.
XPO has a Debt to FCF ratio of 22.27. This is in the better half 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: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 22.27 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.89
WACC9.24%
2.3 Liquidity
XPO has a Current 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.
With a Current ratio value of 1.02, XPO perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
A Quick Ratio of 1.02 indicates that XPO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.02, XPO is in line with its industry, outperforming 47.62% of the companies in the same 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 3.07% over the past year.
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%.
XPO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.45% yearly.
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 16.08% on average per year.
The Revenue is expected to grow by 4.49% on average over the next years.
EPS Next Y-3.31%
EPS Next 2Y10.35%
EPS Next 3Y13.69%
EPS Next 5Y16.08%
Revenue Next Year-0.07%
Revenue Next 2Y1.88%
Revenue Next 3Y3.01%
Revenue Next 5Y4.49%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.86, which means the current valuation is very expensive for XPO.
XPO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.77, XPO is valued a bit more expensive.
XPO is valuated quite expensively with a Price/Forward Earnings ratio of 29.08.
XPO's Price/Forward Earnings ratio is in line with the industry average.
XPO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.86 | ||
| Fwd PE | 29.08 |
4.2 Price Multiples
XPO's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, XPO is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 104.68 | ||
| EV/EBITDA | 15.86 |
4.3 Compensation for Growth
XPO has an outstanding profitability rating, which may justify a higher PE ratio.
XPO's earnings are expected to grow with 13.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.35%
EPS Next 3Y13.69%
5. Dividend
5.1 Amount
XPO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
136
+2.21 (+1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners106.87%
Inst Owner Change-0.02%
Ins Owners1.81%
Ins Owner Change0.03%
Market Cap16.02B
Analysts81.38
Price Target140.45 (3.27%)
Short Float %8.35%
Short Ratio7.95
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)0.06%
PT rev (3m)1.46%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-0.66%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.86 | ||
| Fwd PE | 29.08 | ||
| P/S | 2 | ||
| P/FCF | 104.68 | ||
| P/OCF | 19.04 | ||
| P/B | 8.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.86 |
EPS(TTM)3.69
EY2.71%
EPS(NY)4.68
Fwd EY3.44%
FCF(TTM)1.3
FCFY0.96%
OCF(TTM)7.14
OCFY5.25%
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 | 2.88 |
F-Score6
WACC9.24%
ROIC/WACC0.89
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-3.31%
EPS Next 2Y10.35%
EPS Next 3Y13.69%
EPS Next 5Y16.08%
Revenue 1Y (TTM)-0.1%
Revenue growth 3Y3.87%
Revenue growth 5Y-5.45%
Sales Q2Q%0.05%
Revenue Next Year-0.07%
Revenue Next 2Y1.88%
Revenue Next 3Y3.01%
Revenue Next 5Y4.49%
EBIT growth 1Y1.32%
EBIT growth 3Y33.38%
EBIT growth 5Y6.62%
EBIT Next Year73.05%
EBIT Next 3Y29.52%
EBIT Next 5Y20.78%
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%