GXO LOGISTICS INC (GXO) Stock Fundamental Analysis
USA - NYSE:GXO - US36262G1013 - Common Stock
54.67 USD
+0.94 (+1.75%)
54.67 USD
0 (0%)
Overall GXO gets a fundamental rating of 4 out of 10. We evaluated GXO against 23 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 has a correct valuation and a medium 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.
Each year in the past 5 years GXO had a positive operating cash flow.
1.2 Ratios
GXO has a better Return On Assets (0.53%) than 60.87% of its industry peers.
With a decent Return On Equity value of 2.14%, GXO is doing good in the industry, outperforming 60.87% of the companies in the same industry.
GXO has a Return On Invested Capital of 4.13%. This is in the better half of the industry: GXO outperforms 60.87% of its industry peers.
GXO had an Average Return On Invested Capital over the past 3 years of 4.64%. This is significantly below the industry average of 11.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 2.14% | ||
| ROIC | 4.13% |
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 0.50%. This is in the better half of the industry: GXO outperforms 60.87% of its industry peers.
GXO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.04%, GXO is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
In the last couple of years the Operating Margin of GXO has grown nicely.
GXO has a Gross Margin (15.01%) which is in line with its industry peers.
GXO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.04% | ||
| PM (TTM) | 0.5% | ||
| GM | 15.01% |
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.
The number of shares outstanding for GXO has been increased compared to 5 years ago.
The debt/assets ratio for GXO is higher compared to a year ago.
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.
With a Altman-Z score value of 1.58, GXO is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
GXO has a debt to FCF ratio of 28.88. This is a negative value and a sign of low solvency as GXO would need 28.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 28.88, GXO is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
A Debt/Equity ratio of 0.88 indicates that GXO is somewhat dependend on debt financing.
GXO's Debt to Equity ratio of 0.88 is on the low side compared to the rest of the industry. GXO is outperformed by 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 28.88 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.55
WACC7.5%
2.3 Liquidity
GXO has a Current Ratio of 0.76. This is a bad value and indicates that GXO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.76, GXO is doing worse than 86.96% of the companies in the same industry.
GXO has a Quick Ratio of 0.76. 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 worse Quick ratio (0.76) than 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.88% over the past year.
Measured over the past years, GXO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.56% on average per year.
Looking at the last year, GXO shows a very strong growth in Revenue. The Revenue has grown by 22.39%.
The Revenue has been growing by 13.95% on average over the past years. This is quite good.
EPS 1Y (TTM)10.88%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%3.64%
Revenue 1Y (TTM)22.39%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%15.92%
3.2 Future
The Earnings Per Share is expected to grow by 7.59% on average over the next years.
GXO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.62% yearly.
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
The Price/Earnings ratio is 20.63, which indicates a rather expensive current valuation of GXO.
Based on the Price/Earnings ratio, GXO is valued a bit cheaper than the industry average as 60.87% 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 26.89.
GXO is valuated rather expensively with a Price/Forward Earnings ratio of 17.56.
Based on the Price/Forward Earnings ratio, GXO is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
GXO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.63 | ||
| Fwd PE | 17.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GXO is valued a bit cheaper than 65.22% of the companies in the same industry.
GXO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GXO is cheaper than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 67.29 | ||
| EV/EBITDA | 10.54 |
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)1.25
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 |
54.67
+0.94 (+1.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners104.76%
Inst Owner Change-1.17%
Ins Owners0.62%
Ins Owner Change0.39%
Market Cap6.26B
Revenue(TTM)12.68B
Net Income(TTM)63.00M
Analysts81.9
Price Target62.58 (14.47%)
Short Float %6.97%
Short Ratio8.89
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)8.74%
Min EPS beat(2)4.22%
Max EPS beat(2)13.25%
EPS beat(4)4
Avg EPS beat(4)6.56%
Min EPS beat(4)3.64%
Max EPS beat(4)13.25%
EPS beat(8)8
Avg EPS beat(8)4.37%
EPS beat(12)12
Avg EPS beat(12)6.45%
EPS beat(16)16
Avg EPS beat(16)9.27%
Revenue beat(2)2
Avg Revenue beat(2)2.89%
Min Revenue beat(2)0.37%
Max Revenue beat(2)5.4%
Revenue beat(4)3
Avg Revenue beat(4)2.42%
Min Revenue beat(4)-0.06%
Max Revenue beat(4)5.4%
Revenue beat(8)6
Avg Revenue beat(8)1.81%
Revenue beat(12)7
Avg Revenue beat(12)1.13%
Revenue beat(16)10
Avg Revenue beat(16)1.91%
PT rev (1m)1.36%
PT rev (3m)8.31%
EPS NQ rev (1m)-1.36%
EPS NQ rev (3m)3.88%
EPS NY rev (1m)-1.5%
EPS NY rev (3m)1.22%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)2.8%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.63 | ||
| Fwd PE | 17.56 | ||
| P/S | 0.49 | ||
| P/FCF | 67.29 | ||
| P/OCF | 15.04 | ||
| P/B | 2.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.54 |
EPS(TTM)2.65
EY4.85%
EPS(NY)3.11
Fwd EY5.69%
FCF(TTM)0.81
FCFY1.49%
OCF(TTM)3.63
OCFY6.65%
SpS110.8
BVpS25.68
TBVpS-16.55
PEG (NY)N/A
PEG (5Y)1.25
Graham Number39.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 2.14% | ||
| ROCE | 4.53% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.23% | ||
| ROICexgc | 10.11% | ||
| OM | 3.04% | ||
| PM (TTM) | 0.5% | ||
| GM | 15.01% | ||
| FCFM | 0.73% |
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 Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 28.88 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 72.91% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.18% | ||
| Profit Quality | 147.62% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.58 |
F-Score5
WACC7.5%
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)10.88%
EPS 3Y-5.37%
EPS 5Y16.56%
EPS Q2Q%3.64%
EPS Next Y-9.46%
EPS Next 2Y5.62%
EPS Next 3Y7.59%
EPS Next 5YN/A
Revenue 1Y (TTM)22.39%
Revenue growth 3Y13.82%
Revenue growth 5Y13.95%
Sales Q2Q%15.92%
Revenue Next Year12.79%
Revenue Next 2Y9.51%
Revenue Next 3Y8.04%
Revenue Next 5Y7.62%
EBIT growth 1Y11.24%
EBIT growth 3Y14.37%
EBIT growth 5Y18.01%
EBIT Next Year85.69%
EBIT Next 3Y29.89%
EBIT Next 5Y20.85%
FCF growth 1Y-10.58%
FCF growth 3Y-2.5%
FCF growth 5YN/A
OCF growth 1Y-5.88%
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 4 / 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 6 / 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.