XPO INC (XPO) Stock Fundamental Analysis
USA - NYSE:XPO - US9837931008 - Common Stock
138.34 USD
-2.32 (-1.65%)
138.34 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 belongs to the best of the industry regarding profitability, 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
XPO had positive earnings in the past year.
XPO had a positive operating cash flow in the past year.
XPO had positive earnings in each of the past 5 years.
XPO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of XPO (4.05%) is better than 67.44% of its industry peers.
XPO's Return On Equity of 18.27% is amongst the best of the industry. XPO outperforms 83.72% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.40%, XPO is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for XPO is in line with the industry average of 7.70%.
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
The Profit Margin of XPO (4.12%) is better than 72.09% of its industry peers.
In the last couple of years the Profit Margin of XPO has grown nicely.
XPO has a better Operating Margin (8.73%) than 72.09% of its industry peers.
In the last couple of years the Operating Margin of XPO has grown nicely.
XPO's Gross Margin of 60.26% is fine compared to the rest of the industry. XPO outperforms 69.77% of its industry peers.
XPO's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, XPO has more shares outstanding
The number of shares outstanding for XPO has been increased compared to 5 years ago.
Compared to 1 year ago, XPO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.97 indicates that XPO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.97, XPO is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
XPO has a debt to FCF ratio of 14.43. This is a negative value and a sign of low solvency as XPO would need 14.43 years to pay back of all of its debts.
XPO's Debt to FCF ratio of 14.43 is fine compared to the rest 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.
XPO has a worse Debt to Equity ratio (1.77) than 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 14.43 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.9
WACC9.33%
2.3 Liquidity
A Current Ratio of 1.02 indicates that XPO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.02, XPO perfoms like the industry average, outperforming 48.84% of the companies in the same industry.
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's Quick ratio of 1.02 is in line compared to the rest of the industry. XPO outperforms 48.84% of its industry peers.
| 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.
XPO shows a decrease in Revenue. In the last year, the revenue decreased by -0.28%.
Measured over the past years, XPO shows a decrease in Revenue. The Revenue has been decreasing by -5.45% on average per year.
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
XPO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.72% yearly.
Based on estimates for the next years, XPO will show a small growth in Revenue. The Revenue will grow by 4.50% on average per year.
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
The Price/Earnings ratio is 36.99, which means the current valuation is very expensive for XPO.
XPO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.13. XPO is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 30.38, XPO can be considered very expensive at the moment.
XPO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.35. XPO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.99 | ||
| Fwd PE | 30.38 |
4.2 Price Multiples
XPO's Enterprise Value to EBITDA ratio is in line with the industry average.
XPO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. XPO is cheaper than 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.22 | ||
| EV/EBITDA | 16.09 |
4.3 Compensation for Growth
The excellent profitability rating of XPO may justify a higher PE ratio.
XPO's earnings are expected to grow with 13.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.9%
EPS Next 3Y13.37%
5. Dividend
5.1 Amount
No dividends for XPO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
138.34
-2.32 (-1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners106.87%
Inst Owner Change0%
Ins Owners1.81%
Ins Owner Change-0.01%
Market Cap16.29B
Revenue(TTM)8.07B
Net Income(TTM)332.00M
Analysts82
Price Target144.11 (4.17%)
Short Float %9.67%
Short Ratio9.49
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)0.65%
Min Revenue beat(2)0.43%
Max Revenue beat(2)0.86%
Revenue beat(4)2
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.86%
Revenue beat(8)4
Avg Revenue beat(8)-0.29%
Revenue beat(12)6
Avg Revenue beat(12)-0.28%
Revenue beat(16)6
Avg Revenue beat(16)-17.95%
PT rev (1m)2.67%
PT rev (3m)4.11%
EPS NQ rev (1m)-0.85%
EPS NQ rev (3m)0.47%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.99 | ||
| Fwd PE | 30.38 | ||
| P/S | 2.02 | ||
| P/FCF | 70.22 | ||
| P/OCF | 17.17 | ||
| P/B | 8.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.09 |
EPS(TTM)3.74
EY2.7%
EPS(NY)4.55
Fwd EY3.29%
FCF(TTM)1.97
FCFY1.42%
OCF(TTM)8.06
OCFY5.83%
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 | 2.97 |
F-Score5
WACC9.33%
ROIC/WACC0.9
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 36.99 and the Price/Book (PB) ratio is 8.97.
Can you provide the financial health for XPO stock?
The financial health rating of XPO INC (XPO) is 4 / 10.