GXO LOGISTICS INC (GXO) Stock Fundamental Analysis
NYSE:GXO - New York Stock Exchange, Inc. - US36262G1013 - Common Stock - Currency: USD
Taking everything into account, GXO scores 3 out of 10 in our fundamental rating. GXO was compared to 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GXO was profitable.
In the past year GXO had a positive cash flow from operations.
Of the past 5 years GXO 4 years were profitable.
In the past 5 years GXO always reported a positive cash flow from operatings.
1.2 Ratios
GXO has a Return On Assets (0.66%) which is in line with its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for GXO is significantly below the industry average of 12.73%.
| 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
GXO has a Profit Margin (0.61%) which is comparable to the rest of the industry.
GXO's Profit Margin has improved in the last couple of years.
The Operating Margin of GXO (3.03%) is better than 68.18% 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.
In the last couple of years the Gross Margin of GXO has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GXO 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 1.58. This is a bad value and indicates that GXO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.58, GXO is doing worse than 63.64% of the companies in the same industry.
The Debt to FCF ratio of GXO is 16.59, which is on the high side as it means it would take GXO, 16.59 years of fcf income to pay off all of its debts.
GXO's Debt to FCF ratio of 16.59 is fine compared to the rest of the industry. GXO outperforms 63.64% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that GXO is somewhat dependend on debt financing.
The Debt to Equity ratio of GXO (0.89) is worse than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 16.59 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.55
WACC7.67%
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 amonst the worse of the industry: GXO underperforms 86.36% of its industry peers.
A Quick Ratio of 0.78 indicates that GXO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, GXO is doing worse than 86.36% of the companies in the same industry.
| 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.
Looking at the last year, GXO shows a very strong growth in Revenue. The Revenue has grown by 23.40%.
The Revenue has been growing by 13.95% on average over the past years. This is quite good.
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-11.71%
EPS Next 2Y3.4%
EPS Next 3Y5.78%
EPS Next 5YN/A
Revenue Next Year8.8%
Revenue Next 2Y7.37%
Revenue Next 3Y7%
Revenue Next 5Y6.31%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 18.25, 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 68.18% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.65. GXO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.10 indicates a correct valuation of GXO.
Based on the Price/Forward Earnings ratio, GXO is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.27. GXO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 16.1 |
4.2 Price Multiples
GXO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GXO is cheaper than 68.18% of the companies in the same industry.
68.18% of the companies in the same industry are more expensive than GXO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.5 | ||
| EV/EBITDA | 10.04 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y3.4%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
No dividends for GXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
48.01
-1.09 (-2.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners106.01%
Inst Owner Change4.94%
Ins Owners0.83%
Ins Owner Change0.98%
Market Cap5.49B
Analysts80
Price Target53.52 (11.48%)
Short Float %7.27%
Short Ratio6.18
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)1.94%
PT rev (3m)-4.05%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-4.4%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-5.05%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 16.1 | ||
| P/S | 0.45 | ||
| P/FCF | 33.5 | ||
| P/OCF | 10.4 | ||
| P/B | 1.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.04 |
EPS(TTM)2.63
EY5.48%
EPS(NY)2.98
Fwd EY6.21%
FCF(TTM)1.43
FCFY2.99%
OCF(TTM)4.61
OCFY9.61%
SpS106.89
BVpS25.08
TBVpS-15.12
PEG (NY)N/A
PEG (5Y)1.1
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 | 1.58 |
F-Score4
WACC7.67%
ROIC/WACC0.55
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-11.71%
EPS Next 2Y3.4%
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 Year8.8%
Revenue Next 2Y7.37%
Revenue Next 3Y7%
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%