RXO INC (RXO)
US74982T1034 - Common Stock
Overall RXO gets a fundamental rating of 4 out of 10. We evaluated RXO against 36 industry peers in the Ground Transportation industry. RXO has an average financial health and profitability rating. RXO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RXO was profitable.
In the past year RXO had a positive cash flow from operations.
RXO had positive earnings in each of the past 5 years.
In the past 5 years RXO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RXO (0.22%) is worse than 72.22% of its industry peers.
Looking at the Return On Equity, with a value of 0.67%, RXO is doing worse than 69.44% of the companies in the same industry.
RXO has a Return On Invested Capital (4.53%) which is comparable to the rest of the industry.
RXO had an Average Return On Invested Capital over the past 3 years of 10.24%. This is above the industry average of 7.83%.
The 3 year average ROIC (10.24%) for RXO is well above the current ROIC(4.53%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.67% | ||
| ROIC | 4.53% |
ROA(3y)4%
ROA(5y)N/A
ROE(3y)10.12%
ROE(5y)N/A
ROIC(3y)10.24%
ROIC(5y)N/A
1.3 Margins
RXO has a worse Profit Margin (0.10%) than 72.22% of its industry peers.
In the last couple of years the Profit Margin of RXO has declined.
With a Operating Margin value of 1.71%, RXO is not doing good in the industry: 69.44% of the companies in the same industry are doing better.
RXO's Operating Margin has declined in the last couple of years.
The Gross Margin of RXO (18.46%) is worse than 75.00% of its industry peers.
In the last couple of years the Gross Margin of RXO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.71% | ||
| PM (TTM) | 0.1% | ||
| GM | 18.46% |
OM growth 3Y-11.98%
OM growth 5YN/A
PM growth 3Y-57%
PM growth 5YN/A
GM growth 3Y0.26%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RXO is creating some value.
RXO has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, RXO has an improved debt to assets ratio.
2.2 Solvency
RXO has an Altman-Z score of 3.44. This indicates that RXO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.44, RXO is doing good in the industry, outperforming 75.00% of the companies in the same industry.
RXO has a debt to FCF ratio of 14.36. This is a negative value and a sign of low solvency as RXO would need 14.36 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 14.36, RXO is doing good in the industry, outperforming 69.44% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that RXO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, RXO is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 14.36 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.52
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.17 indicates that RXO should not have too much problems paying its short term obligations.
The Current ratio of RXO (1.17) is comparable to the rest of the industry.
A Quick Ratio of 1.17 indicates that RXO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, RXO is in line with its industry, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for RXO have decreased strongly by -95.41% in the last year.
The earnings per share for RXO have been decreasing by -55.10% on average. This is quite bad
RXO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.12%.
The Revenue has been growing slightly by 5.37% on average over the past years.
EPS 1Y (TTM)-95.41%
EPS 3Y-55.1%
EPS 5YN/A
EPS growth Q2Q-78.57%
Revenue 1Y (TTM)-18.12%
Revenue growth 3Y5.37%
Revenue growth 5YN/A
Revenue growth Q2Q-12.68%
3.2 Future
RXO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.44% yearly.
The Revenue is expected to grow by 6.88% on average over the next years.
EPS Next Y-20.55%
EPS Next 2Y51.63%
EPS Next 3Y44.44%
EPS Next 5YN/A
Revenue Next Year2.23%
Revenue Next 2Y6.39%
Revenue Next 3Y6.88%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 63.33 indicates a quite expensive valuation of RXO.
66.67% of the companies in the same industry are cheaper than RXO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RXO to the average of the S&P500 Index (24.55), we can say RXO is valued expensively.
A Price/Forward Earnings ratio of 79.71 indicates a quite expensive valuation of RXO.
Based on the Price/Forward Earnings ratio, RXO is valued a bit more expensive than the industry average as 72.22% of the companies are valued more cheaply.
RXO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.33 | ||
| Fwd PE | 79.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RXO is valued a bit more expensive than the industry average as 61.11% of the companies are valued more cheaply.
63.89% of the companies in the same industry are more expensive than RXO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 89.33 | ||
| EV/EBITDA | 19.23 |
4.3 Compensation for Growth
A more expensive valuation may be justified as RXO's earnings are expected to grow with 44.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y51.63%
EPS Next 3Y44.44%
5. Dividend
5.1 Amount
No dividends for RXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RXO INC
NYSE:RXO (5/1/2024, 7:20:46 PM)
After market: 19.02 +0.02 (+0.11%)19
+0.09 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.33 | ||
| Fwd PE | 79.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 0.67% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.71% | ||
| PM (TTM) | 0.1% | ||
| GM | 18.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-95.41%
EPS 3Y-55.1%
EPS 5Y
EPS growth Q2Q
EPS Next Y-20.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.12%
Revenue growth 3Y5.37%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y