XPO INC (XPO)
US9837931008 - Common Stock
XPO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 37 industry peers in the Ground Transportation industry. While XPO belongs to the best of the industry regarding profitability, 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.
Each year in the past 5 years XPO had a positive operating cash flow.
1.2 Ratios
XPO has a Return On Assets (4.67%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 22.55%, XPO belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
XPO has a Return On Invested Capital of 8.08%. This is in the better half of the industry: XPO outperforms 64.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for XPO is significantly below the industry average of 11.94%.
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.
XPO's Profit Margin has improved in the last couple of years.
XPO has a better Operating Margin (8.75%) than 62.16% of its industry peers.
XPO's Operating Margin has improved in the last couple of years.
XPO has a Gross Margin of 58.71%. This is in the better half of the industry: XPO outperforms 67.57% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
XPO has a worse debt/assets ratio than last year.
2.2 Solvency
XPO has an Altman-Z score of 2.92. 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.
Looking at the Altman-Z score, with a value of 2.92, XPO is in the better half of the industry, outperforming 67.57% of the companies in the same industry.
XPO has a Debt/Equity ratio of 2.04. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of XPO (2.04) is worse than 81.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.92 |
ROIC/WACC0.96
WACC8.42%
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 in line with its industry peers.
A Quick Ratio of 1.06 indicates that XPO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.06, XPO is in line with its industry, outperforming 48.65% of the companies in the same 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.
XPO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.81% yearly.
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
Based on estimates for the next years, XPO will show a very strong growth in Earnings Per Share. The EPS will grow by 22.18% on average per year.
XPO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
EPS Next Y25.27%
EPS Next 2Y23.42%
EPS Next 3Y24.58%
EPS Next 5Y22.18%
Revenue Next Year4.72%
Revenue Next 2Y4.5%
Revenue Next 3Y5.01%
Revenue Next 5Y5.98%
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
With a Price/Earnings ratio of 36.36, XPO can be considered very expensive at the moment.
XPO's Price/Earnings ratio is a bit more expensive when compared to the industry. XPO is more expensive than 62.16% of the companies in the same industry.
XPO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 30.41, the valuation of XPO can be described as expensive.
64.86% of the companies in the same industry are cheaper than XPO, based on the Price/Forward Earnings ratio.
XPO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 30.41 |
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 | 15.82 |
4.3 Compensation for Growth
XPO's 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.
A more expensive valuation may be justified as XPO's earnings are expected to grow with 24.58% in the coming years.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2Y23.42%
EPS Next 3Y24.58%
5. Dividend
5.1 Amount
No dividends for XPO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
XPO INC
NYSE:XPO (12/20/2024, 8:04:00 PM)
After market: 135.25 0 (0%)135.25
-10.26 (-7.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners98.07%
Inst Owner Change5.37%
Ins Owners0.83%
Ins Owner Change0%
Market Cap15.74B
Analysts82.14
Price Target150.51 (11.28%)
Short Float %5.73%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)-26.99%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.36%
Min EPS beat(2)9.48%
Max EPS beat(2)11.23%
EPS beat(4)4
Avg EPS beat(4)15.92%
Min EPS beat(4)9.48%
Max EPS beat(4)23.27%
EPS beat(8)8
Avg EPS beat(8)18.85%
EPS beat(12)12
Avg EPS beat(12)20.25%
EPS beat(16)15
Avg EPS beat(16)23.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-0.67%
Max Revenue beat(2)0.64%
Revenue beat(4)2
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-0.67%
Max Revenue beat(4)0.64%
Revenue beat(8)4
Avg Revenue beat(8)-0.18%
Revenue beat(12)4
Avg Revenue beat(12)-23.77%
Revenue beat(16)5
Avg Revenue beat(16)-35.87%
PT rev (1m)11.83%
PT rev (3m)11.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.08%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.89%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 30.41 | ||
| P/S | 1.95 | ||
| P/FCF | N/A | ||
| P/OCF | 18.12 | ||
| P/B | 9.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.82 |
EPS(TTM)3.72
EY2.75%
EPS(NY)4.45
Fwd EY3.29%
FCF(TTM)-6.81
FCFYN/A
OCF(TTM)7.47
OCFY5.52%
SpS69.5
BVpS14.1
TBVpS-2.2
PEG (NY)1.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 22.55% | ||
| ROCE | 11.13% | ||
| ROIC | 8.08% | ||
| ROICexc | 8.59% | ||
| ROICexgc | 12.58% | ||
| OM | 8.75% | ||
| PM (TTM) | 4.57% | ||
| GM | 58.71% | ||
| FCFM | N/A |
ROA(3y)5.67%
ROA(5y)4.03%
ROE(3y)36.75%
ROE(5y)25.4%
ROIC(3y)5.87%
ROIC(5y)4.33%
ROICexc(3y)6.34%
ROICexc(5y)4.66%
ROICexgc(3y)10.4%
ROICexgc(5y)7.96%
ROCE(3y)8.08%
ROCE(5y)5.96%
ROICexcg growth 3Y112.71%
ROICexcg growth 5Y-10.51%
ROICexc growth 3Y112.28%
ROICexc growth 5Y2.9%
OM growth 3Y65.16%
OM growth 5Y10.82%
PM growth 3Y23.98%
PM growth 5Y1.58%
GM growth 3Y14.91%
GM growth 5Y3.32%
F-Score5
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 346.97% | ||
| Cap/Sales | 20.54% | ||
| Interest Coverage | 3.16 | ||
| Cash Conversion | 73.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 2.92 |
F-Score5
WACC8.42%
ROIC/WACC0.96
Cap/Depr(3y)185.88%
Cap/Depr(5y)140.93%
Cap/Sales(3y)10.09%
Cap/Sales(5y)7.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.85%
EPS 3Y16.01%
EPS 5Y-1.81%
EPS Q2Q%15.91%
EPS Next Y25.27%
EPS Next 2Y23.42%
EPS Next 3Y24.58%
EPS Next 5Y22.18%
Revenue 1Y (TTM)5.96%
Revenue growth 3Y7.88%
Revenue growth 5Y-14.83%
Sales Q2Q%3.69%
Revenue Next Year4.72%
Revenue Next 2Y4.5%
Revenue Next 3Y5.01%
Revenue Next 5Y5.98%
EBIT growth 1Y45.98%
EBIT growth 3Y78.17%
EBIT growth 5Y-5.62%
EBIT Next Year115.17%
EBIT Next 3Y40.44%
EBIT Next 5Y27.66%
FCF growth 1Y-331.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.25%
OCF growth 3Y-8.32%
OCF growth 5Y-9.15%