QXO INC (QXO) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:QXO - US82846H4056 - Common Stock

23.925 USD

-0.02 (-0.06%)

Last: 1/27/2026, 11:53:07 AM

Fundamental Rating

Overall QXO gets a fundamental rating of 4 out of 10. We evaluated QXO against 50 industry peers in the Trading Companies & Distributors industry. While QXO seems to be doing ok healthwise, there are quite some concerns on its profitability. QXO shows excellent growth, but is valued quite expensive already.

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1. Profitability

1.1 Basic Checks

QXO had positive earnings in the past year.
In the past year QXO had a positive cash flow from operations.

1.2 Ratios

QXO has a Return On Assets of -1.68%. This is in the lower half of the industry: QXO underperforms 72.00% of its industry peers.
With a Return On Equity value of -2.84%, QXO is not doing good in the industry: 68.00% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
ROA	-1.68%
ROE	-2.84%
ROIC	N/A

ROA(3y)-2.33%

ROA(5y)N/A

ROE(3y)-5.91%

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Gross Margin of QXO (22.49%) is worse than 68.00% of its industry peers.
In the last couple of years the Gross Margin of QXO has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for QXO so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	22.49%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-0.77%

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

QXO does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, QXO has more shares outstanding
QXO has a better debt/assets ratio than last year.

2.2 Solvency

QXO has an Altman-Z score of 1.96. This is not the best score and indicates that QXO is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.96, QXO is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
The Debt to FCF ratio of QXO is 41.57, which is on the high side as it means it would take QXO, 41.57 years of fcf income to pay off all of its debts.
QXO's Debt to FCF ratio of 41.57 is in line compared to the rest of the industry. QXO outperforms 46.00% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that QXO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.33, QXO is doing good in the industry, outperforming 62.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.33
Debt/FCF	41.57
Altman-Z	1.96

ROIC/WACCN/A

WACC9.8%

2.3 Liquidity

A Current Ratio of 3.06 indicates that QXO has no problem at all paying its short term obligations.
The Current ratio of QXO (3.06) is better than 76.00% of its industry peers.
A Quick Ratio of 2.24 indicates that QXO has no problem at all paying its short term obligations.
QXO has a better Quick ratio (2.24) than 82.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.06
Quick Ratio	2.24

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

QXO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 95.15%, which is quite impressive.
Looking at the last year, QXO shows a very strong growth in Revenue. The Revenue has grown by 8103.74%.
Measured over the past years, QXO shows a quite strong growth in Revenue. The Revenue has been growing by 10.90% on average per year.

EPS 1Y (TTM)95.15%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%180%

Revenue 1Y (TTM)8103.74%

Revenue growth 3Y10.9%

Revenue growth 5YN/A

Sales Q2Q%20639.64%

3.2 Future

Based on estimates for the next years, QXO will show a very strong growth in Earnings Per Share. The EPS will grow by 91.09% on average per year.
The Revenue is expected to grow by 238.49% on average over the next years. This is a very strong growth

EPS Next Y576.15%

EPS Next 2Y196.93%

EPS Next 3Y137.46%

EPS Next 5Y91.09%

Revenue Next Year12131.3%

Revenue Next 2Y1303.29%

Revenue Next 3Y546%

Revenue Next 5Y238.49%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 95.70 indicates a quite expensive valuation of QXO.
Compared to the rest of the industry, the Price/Earnings ratio of QXO indicates a slightly more expensive valuation: QXO is more expensive than 70.00% of the companies listed in the same industry.
QXO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
The Price/Forward Earnings ratio is 57.92, which means the current valuation is very expensive for QXO.
QXO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. QXO is more expensive than 66.00% of the companies in the same industry.
QXO is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	95.7
Fwd PE	57.92

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, QXO is valued a bit more expensive than the industry average as 76.00% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QXO is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	204.44
EV/EBITDA	93.41

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as QXO's earnings are expected to grow with 137.46% in the coming years.