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. There are concerns on the financial health of GXO while its profitability can be described as average. GXO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GXO had positive earnings in the past year.
In the past year GXO had a positive cash flow from operations.
GXO had positive earnings in 4 of the past 5 years.
GXO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GXO's Return On Assets of 0.66% is in line compared to the rest of the industry. GXO outperforms 59.09% of its industry peers.
Looking at the Return On Equity, with a value of 2.61%, GXO is in line with its industry, outperforming 59.09% of the companies in the same industry.
With a Return On Invested Capital value of 4.24%, GXO perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GXO is significantly below the industry average of 12.50%.
| 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 of 0.61%. This is comparable to the rest of the industry: GXO outperforms 59.09% of its industry peers.
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.
In the last couple of years the Operating Margin of GXO has grown nicely.
The Gross Margin of GXO (15.33%) is comparable to the rest of the industry.
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.
GXO has more shares outstanding than it did 1 year ago.
GXO has more shares outstanding than it did 5 years ago.
GXO has a worse debt/assets ratio than last year.
2.2 Solvency
GXO has an Altman-Z score of 1.61. This is a bad value and indicates that GXO is not financially healthy and even has some risk of bankruptcy.
GXO has a worse Altman-Z score (1.61) than 63.64% of 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 comparable to the rest of the industry.
A Debt/Equity ratio of 0.89 indicates that GXO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, GXO is doing worse than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 16.59 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.55
WACC7.75%
2.3 Liquidity
A Current Ratio of 0.78 indicates that GXO may have some problems paying its short term obligations.
GXO has a worse Current ratio (0.78) than 86.36% of its industry peers.
A Quick Ratio of 0.78 indicates that GXO may have some problems paying its short term obligations.
The Quick ratio of GXO (0.78) is worse than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
GXO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.54%.
The Earnings Per Share has been growing by 16.56% on average over the past years. This is quite good.
GXO shows a strong growth in Revenue. In the last year, 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
Based on estimates for the next years, GXO will show a small growth in Earnings Per Share. The EPS will grow by 6.44% on average per year.
Based on estimates for the next years, GXO will show a small growth in Revenue. The Revenue will grow by 6.31% on average per year.
EPS Next Y-10.56%
EPS Next 2Y3.53%
EPS Next 3Y6.44%
EPS Next 5YN/A
Revenue Next Year9.26%
Revenue Next 2Y7.77%
Revenue Next 3Y7.31%
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
With a Price/Earnings ratio of 19.58, GXO is valued on the expensive side.
Based on the Price/Earnings ratio, GXO is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GXO to the average of the S&P500 Index (27.19), we can say GXO is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.22 indicates a rather expensive 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.
When comparing the Price/Forward Earnings ratio of GXO to the average of the S&P500 Index (35.33), we can say GXO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 17.22 |
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.
Based on the Price/Free Cash Flow ratio, GXO is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.92 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y3.53%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
GXO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
51.49
-0.63 (-1.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners106.01%
Inst Owner Change-0.24%
Ins Owners0.83%
Ins Owner Change0.98%
Market Cap5.89B
Analysts80
Price Target53.52 (3.94%)
Short Float %6.17%
Short Ratio5
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)0%
PT rev (3m)-0.69%
EPS NQ rev (1m)6.71%
EPS NQ rev (3m)4.4%
EPS NY rev (1m)1.5%
EPS NY rev (3m)2.72%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 17.22 | ||
| P/S | 0.48 | ||
| P/FCF | 35.92 | ||
| P/OCF | 11.16 | ||
| P/B | 2.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.47 |
EPS(TTM)2.63
EY5.11%
EPS(NY)2.99
Fwd EY5.81%
FCF(TTM)1.43
FCFY2.78%
OCF(TTM)4.61
OCFY8.96%
SpS106.89
BVpS25.08
TBVpS-15.12
PEG (NY)N/A
PEG (5Y)1.18
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 | 1.61 |
F-Score4
WACC7.75%
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-10.56%
EPS Next 2Y3.53%
EPS Next 3Y6.44%
EPS Next 5YN/A
Revenue 1Y (TTM)23.4%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%21.21%
Revenue Next Year9.26%
Revenue Next 2Y7.77%
Revenue Next 3Y7.31%
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%