GXO LOGISTICS INC (GXO) Stock Fundamental Analysis
NYSE:GXO - New York Stock Exchange, Inc. - US36262G1013 - Common Stock - Currency: USD
Overall GXO gets a fundamental rating of 4 out of 10. We evaluated GXO against 22 industry peers in the Air Freight & Logistics industry. GXO has a medium profitability rating, but doesn't score so well on its financial health evaluation. GXO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GXO was profitable.
GXO had a positive operating cash flow in the past year.
GXO had positive earnings in 4 of the past 5 years.
In the past 5 years GXO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.66%, GXO is in line with its industry, outperforming 59.09% of the companies in the same industry.
GXO has a Return On Equity (2.61%) which is in line with its industry peers.
GXO has a Return On Invested Capital (4.24%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for GXO is significantly below the industry average of 11.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 2.61% | ||
| ROIC | 4.24% |
ROA(3y)1.91%
ROA(5y)1.47%
ROE(3y)6.59%
ROE(5y)5.04%
ROIC(3y)4.64%
ROIC(5y)4.07%
1.3 Margins
The Profit Margin of GXO (0.61%) is comparable to the rest of the industry.
GXO's Profit Margin has improved in the last couple of years.
GXO has a Operating Margin of 3.03%. This is in the better half of the industry: GXO outperforms 63.64% of its industry peers.
GXO's Operating Margin has improved in the last couple of years.
GXO has a Gross Margin of 15.33%. This is comparable to the rest of the industry: GXO outperforms 45.45% of its industry peers.
GXO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.03% | ||
| PM (TTM) | 0.61% | ||
| GM | 15.33% |
OM growth 3Y0.48%
OM growth 5Y3.56%
PM growth 3Y-15.94%
PM growth 5Y3.05%
GM growth 3Y-1.15%
GM growth 5Y-0.33%
2. Health
2.1 Basic Checks
GXO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GXO has more shares outstanding
GXO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GXO has a worse debt to assets ratio.
2.2 Solvency
GXO has an Altman-Z score of 1.52. This is a bad value and indicates that GXO is not financially healthy and even has some risk of bankruptcy.
GXO has a Altman-Z score (1.52) which is in line with its industry peers.
GXO has a debt to FCF ratio of 16.59. This is a negative value and a sign of low solvency as GXO would need 16.59 years to pay back of all of its debts.
The Debt to FCF ratio of GXO (16.59) is better than 63.64% of its industry peers.
GXO has a Debt/Equity ratio of 0.89. This is a neutral value indicating GXO is somewhat dependend on debt financing.
GXO has a Debt to Equity ratio (0.89) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 16.59 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.56
WACC7.53%
2.3 Liquidity
GXO has a Current Ratio of 0.78. This is a bad value and indicates that GXO is not financially healthy enough and could expect problems in meeting its short term obligations.
GXO has a Current ratio of 0.78. This is in the lower half of the industry: GXO underperforms 77.27% of its industry peers.
A Quick Ratio of 0.78 indicates that GXO may have some problems paying its short term obligations.
With a Quick ratio value of 0.78, GXO is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.54% over the past year.
GXO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.56% yearly.
GXO shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.40%.
Measured over the past years, GXO shows a quite strong growth in Revenue. The Revenue has been growing by 13.95% on average per year.
EPS 1Y (TTM)3.54%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%-35.56%
Revenue 1Y (TTM)23.4%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%21.21%
3.2 Future
The Earnings Per Share is expected to grow by 5.78% on average over the next years.
The Revenue is expected to grow by 6.31% on average over the next years.
EPS Next Y-11.88%
EPS Next 2Y3.38%
EPS Next 3Y5.78%
EPS Next 5YN/A
Revenue Next Year8.73%
Revenue Next 2Y7.43%
Revenue Next 3Y7.16%
Revenue Next 5Y6.31%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.64, which indicates a correct valuation of GXO.
Compared to the rest of the industry, the Price/Earnings ratio of GXO indicates a somewhat cheap valuation: GXO is cheaper than 72.73% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GXO to the average of the S&P500 Index (26.25), we can say GXO is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.80, which indicates a correct valuation of GXO.
Based on the Price/Forward Earnings ratio, GXO is valued a bit cheaper than 77.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GXO to the average of the S&P500 Index (22.15), we can say GXO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.64 | ||
| Fwd PE | 13.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GXO is valued a bit cheaper than 68.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GXO indicates a somewhat cheap valuation: GXO is cheaper than 68.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.7 | ||
| EV/EBITDA | 8.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y3.38%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
GXO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
41.14
-0.51 (-1.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners96.8%
Inst Owner Change4.92%
Ins Owners0.85%
Ins Owner Change0.98%
Market Cap4.71B
Analysts80
Price Target52.5 (27.61%)
Short Float %7.15%
Short Ratio5.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.19%
Min EPS beat(2)5.12%
Max EPS beat(2)13.25%
EPS beat(4)4
Avg EPS beat(4)5.77%
Min EPS beat(4)1.06%
Max EPS beat(4)13.25%
EPS beat(8)8
Avg EPS beat(8)5.45%
EPS beat(12)12
Avg EPS beat(12)6.99%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)0.37%
Revenue beat(4)3
Avg Revenue beat(4)1.87%
Min Revenue beat(4)-0.06%
Max Revenue beat(4)3.99%
Revenue beat(8)5
Avg Revenue beat(8)1.08%
Revenue beat(12)7
Avg Revenue beat(12)0.8%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.58%
PT rev (3m)-7.47%
EPS NQ rev (1m)-2.24%
EPS NQ rev (3m)-29.14%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)-5.23%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)1.14%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.64 | ||
| Fwd PE | 13.8 | ||
| P/S | 0.38 | ||
| P/FCF | 28.7 | ||
| P/OCF | 8.92 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.97 |
EPS(TTM)2.63
EY6.39%
EPS(NY)2.98
Fwd EY7.25%
FCF(TTM)1.43
FCFY3.48%
OCF(TTM)4.61
OCFY11.22%
SpS106.89
BVpS25.08
TBVpS-15.12
PEG (NY)N/A
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 2.61% | ||
| ROCE | 4.65% | ||
| ROIC | 4.24% | ||
| ROICexc | 4.4% | ||
| ROICexgc | 11% | ||
| OM | 3.03% | ||
| PM (TTM) | 0.61% | ||
| GM | 15.33% | ||
| FCFM | 1.34% |
ROA(3y)1.91%
ROA(5y)1.47%
ROE(3y)6.59%
ROE(5y)5.04%
ROIC(3y)4.64%
ROIC(5y)4.07%
ROICexc(3y)4.96%
ROICexc(5y)4.36%
ROICexgc(3y)11.14%
ROICexgc(5y)9.46%
ROCE(3y)5.1%
ROCE(5y)4.47%
ROICexcg growth 3Y3.74%
ROICexcg growth 5Y9.39%
ROICexc growth 3Y-3.46%
ROICexc growth 5Y5.94%
OM growth 3Y0.48%
OM growth 5Y3.56%
PM growth 3Y-15.94%
PM growth 5Y3.05%
GM growth 3Y-1.15%
GM growth 5Y-0.33%
F-Score4
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 16.59 | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | 84.26% | ||
| Cap/Sales | 2.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.84% | ||
| Profit Quality | 218.67% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.52 |
F-Score4
WACC7.53%
ROIC/WACC0.56
Cap/Depr(3y)88.79%
Cap/Depr(5y)81.94%
Cap/Sales(3y)3.22%
Cap/Sales(5y)3.28%
Profit Quality(3y)122.44%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.54%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%-35.56%
EPS Next Y-11.88%
EPS Next 2Y3.38%
EPS Next 3Y5.78%
EPS Next 5YN/A
Revenue 1Y (TTM)23.4%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%21.21%
Revenue Next Year8.73%
Revenue Next 2Y7.43%
Revenue Next 3Y7.16%
Revenue Next 5Y6.31%
EBIT growth 1Y0.82%
EBIT growth 3Y14.37%
EBIT growth 5Y18.01%
EBIT Next Year79.87%
EBIT Next 3Y29.18%
EBIT Next 5Y20.16%
FCF growth 1Y-1.8%
FCF growth 3Y-2.5%
FCF growth 5YN/A
OCF growth 1Y-1.31%
OCF growth 3Y6.46%
OCF growth 5Y30.51%