GXO LOGISTICS INC (GXO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GXO - US36262G1013 - Common Stock
47.56 USD
+1.35 (+2.92%)
47.56 USD
0 (0%)
GXO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 23 industry peers in the Air Freight & Logistics industry. GXO scores excellent on profitability, but there are concerns on its financial health. GXO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GXO had positive earnings in the past year.
GXO had a positive operating cash flow in the past year.
Of the past 5 years GXO 4 years were profitable.
Each year in the past 5 years GXO had a positive operating cash flow.
1.2 Ratios
GXO's Return On Assets of 0.75% is fine compared to the rest of the industry. GXO outperforms 60.87% of its industry peers.
GXO has a better Return On Equity (3.01%) than 60.87% of its industry peers.
GXO's Return On Invested Capital of 4.69% is fine compared to the rest of the industry. GXO outperforms 60.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GXO is significantly below the industry average of 11.55%.
The 3 year average ROIC (4.64%) for GXO is below the current ROIC(4.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 3.01% | ||
| ROIC | 4.69% |
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
Looking at the Profit Margin, with a value of 0.69%, GXO is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
GXO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.18%, GXO is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
GXO's Operating Margin has improved in the last couple of years.
GXO's Gross Margin of 15.14% is in line compared to the rest of the industry. GXO outperforms 56.52% of its industry peers.
GXO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.18% | ||
| PM (TTM) | 0.69% | ||
| GM | 15.14% |
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.
The number of shares outstanding for GXO has been increased compared to 1 year ago.
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
Based on the Altman-Z score of 1.53, we must say that GXO is in the distress zone and has some risk of bankruptcy.
GXO has a worse Altman-Z score (1.53) than 60.87% of its industry peers.
GXO has a debt to FCF ratio of 35.04. This is a negative value and a sign of low solvency as GXO would need 35.04 years to pay back of all of its debts.
GXO's Debt to FCF ratio of 35.04 is fine compared to the rest of the industry. GXO outperforms 60.87% of its industry peers.
GXO has a Debt/Equity ratio of 0.74. This is a neutral value indicating GXO is somewhat dependend on debt financing.
GXO has a Debt to Equity ratio of 0.74. This is in the lower half of the industry: GXO underperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 35.04 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.63
WACC7.41%
2.3 Liquidity
A Current Ratio of 0.71 indicates that GXO may have some problems paying its short term obligations.
GXO has a worse Current ratio (0.71) than 86.96% of its industry peers.
A Quick Ratio of 0.71 indicates that GXO may have some problems paying its short term obligations.
GXO's Quick ratio of 0.71 is on the low side compared to the rest of the industry. GXO is outperformed by 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
GXO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.43%.
The Earnings Per Share has been growing by 16.56% on average over the past years. This is quite good.
GXO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.94%.
GXO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.95% yearly.
EPS 1Y (TTM)6.43%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%0%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%7.54%
3.2 Future
GXO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.59% yearly.
The Revenue is expected to grow by 7.62% on average over the next years.
EPS Next Y-9.46%
EPS Next 2Y5.62%
EPS Next 3Y7.59%
EPS Next 5YN/A
Revenue Next Year12.79%
Revenue Next 2Y9.51%
Revenue Next 3Y8.04%
Revenue Next 5Y7.62%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.95, the valuation of GXO can be described as rather expensive.
Based on the Price/Earnings ratio, GXO is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
GXO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.45.
GXO is valuated correctly with a Price/Forward Earnings ratio of 15.28.
Based on the Price/Forward Earnings ratio, GXO is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.46. GXO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 15.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GXO is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GXO is valued a bit cheaper than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.7 | ||
| EV/EBITDA | 9.06 |
4.3 Compensation for Growth
GXO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.08
EPS Next 2Y5.62%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
GXO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
47.56
+1.35 (+2.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners104.76%
Inst Owner Change-1.41%
Ins Owners0.62%
Ins Owner Change0%
Market Cap5.44B
Revenue(TTM)12.92B
Net Income(TTM)89.00M
Analysts81.9
Price Target65.22 (37.13%)
Short Float %6.63%
Short Ratio7.28
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)1
Avg EPS beat(2)1.96%
Min EPS beat(2)-0.29%
Max EPS beat(2)4.22%
EPS beat(4)3
Avg EPS beat(4)5.58%
Min EPS beat(4)-0.29%
Max EPS beat(4)13.25%
EPS beat(8)7
Avg EPS beat(8)3.83%
EPS beat(12)11
Avg EPS beat(12)5.85%
EPS beat(16)15
Avg EPS beat(16)8.67%
Revenue beat(2)1
Avg Revenue beat(2)2.33%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)5.4%
Revenue beat(4)2
Avg Revenue beat(4)1.24%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)5.4%
Revenue beat(8)6
Avg Revenue beat(8)1.87%
Revenue beat(12)7
Avg Revenue beat(12)1.1%
Revenue beat(16)9
Avg Revenue beat(16)1.41%
PT rev (1m)4.22%
PT rev (3m)5.64%
EPS NQ rev (1m)-2.72%
EPS NQ rev (3m)-5.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)-1.09%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 15.28 | ||
| P/S | 0.42 | ||
| P/FCF | 70.7 | ||
| P/OCF | 12.1 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.06 |
EPS(TTM)2.65
EY5.57%
EPS(NY)3.11
Fwd EY6.54%
FCF(TTM)0.67
FCFY1.41%
OCF(TTM)3.93
OCFY8.27%
SpS112.88
BVpS25.81
TBVpS-15.58
PEG (NY)N/A
PEG (5Y)1.08
Graham Number39.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 3.01% | ||
| ROCE | 5.15% | ||
| ROIC | 4.69% | ||
| ROICexc | 4.9% | ||
| ROICexgc | 12.92% | ||
| OM | 3.18% | ||
| PM (TTM) | 0.69% | ||
| GM | 15.14% | ||
| FCFM | 0.6% |
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%
ROICexgc growth 3Y3.74%
ROICexgc 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-Score5
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 35.04 | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 82.89% | ||
| Cap/Sales | 2.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.26% | ||
| Profit Quality | 86.52% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.53 |
F-Score5
WACC7.41%
ROIC/WACC0.63
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)6.43%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%0%
EPS Next Y-9.46%
EPS Next 2Y5.62%
EPS Next 3Y7.59%
EPS Next 5YN/A
Revenue 1Y (TTM)16.94%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%7.54%
Revenue Next Year12.79%
Revenue Next 2Y9.51%
Revenue Next 3Y8.04%
Revenue Next 5Y7.62%
EBIT growth 1Y15.13%
EBIT growth 3Y14.37%
EBIT growth 5Y18.01%
EBIT Next Year85.69%
EBIT Next 3Y29.89%
EBIT Next 5Y20.85%
FCF growth 1Y-70.5%
FCF growth 3Y-2.5%
FCF growth 5YN/A
OCF growth 1Y-20.91%
OCF growth 3Y6.46%
OCF growth 5Y30.51%
GXO LOGISTICS INC / GXO FAQ
Can you provide the ChartMill fundamental rating for GXO LOGISTICS INC?
ChartMill assigns a fundamental rating of 4 / 10 to GXO.
Can you provide the valuation status for GXO LOGISTICS INC?
ChartMill assigns a valuation rating of 5 / 10 to GXO LOGISTICS INC (GXO). This can be considered as Fairly Valued.
Can you provide the profitability details for GXO LOGISTICS INC?
GXO LOGISTICS INC (GXO) has a profitability rating of 7 / 10.
Can you provide the financial health for GXO stock?
The financial health rating of GXO LOGISTICS INC (GXO) is 1 / 10.
Can you provide the expected EPS growth for GXO stock?
The Earnings per Share (EPS) of GXO LOGISTICS INC (GXO) is expected to decline by -9.46% in the next year.