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RXO INC (RXO) Stock Fundamental Analysis

NYSE:RXO - New York Stock Exchange, Inc. - US74982T1034 - Common Stock - Currency: USD

15.35  -0.74 (-4.6%)

After market: 15.35 0 (0%)

Fundamental Rating

3

Taking everything into account, RXO scores 3 out of 10 in our fundamental rating. RXO was compared to 39 industry peers in the Ground Transportation industry. RXO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, RXO is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

RXO had positive earnings in the past year.
In the past year RXO has reported a negative cash flow from operations.
RXO had positive earnings in 4 of the past 5 years.
RXO had a positive operating cash flow in 4 of the past 5 years.
RXO Yearly Net Income VS EBIT VS OCF VS FCFRXO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 100M -100M 200M -200M 300M

1.2 Ratios

With a Return On Assets value of -9.26%, RXO is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
RXO has a Return On Equity of -19.28%. This is in the lower half of the industry: RXO underperforms 79.49% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.68%, RXO is doing worse than 64.10% of the companies in the same industry.
RXO had an Average Return On Invested Capital over the past 3 years of 6.68%. This is in line with the industry average of 8.06%.
The last Return On Invested Capital (0.68%) for RXO is well below the 3 year average (6.68%), which needs to be investigated, but indicates that RXO had better years and this may not be a problem.
Industry RankSector Rank
ROA -9.26%
ROE -19.28%
ROIC 0.68%
ROA(3y)-1.25%
ROA(5y)1.16%
ROE(3y)-0.55%
ROE(5y)3.28%
ROIC(3y)6.68%
ROIC(5y)7.55%
RXO Yearly ROA, ROE, ROICRXO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 10 -10

1.3 Margins

Looking at the Operating Margin, with a value of 0.39%, RXO is doing worse than 64.10% of the companies in the same industry.
In the last couple of years the Operating Margin of RXO has declined.
RXO has a Gross Margin of 16.84%. This is in the lower half of the industry: RXO underperforms 74.36% 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 RankSector Rank
OM 0.39%
PM (TTM) N/A
GM 16.84%
OM growth 3Y-45.97%
OM growth 5Y-25.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.37%
GM growth 5Y-0.88%
RXO Yearly Profit, Operating, Gross MarginsRXO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 5 -5 10 15

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RXO is destroying value.
Compared to 1 year ago, RXO has more shares outstanding
Compared to 1 year ago, RXO has an improved debt to assets ratio.
RXO Yearly Shares OutstandingRXO Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 50M 100M 150M
RXO Yearly Total Debt VS Total AssetsRXO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

An Altman-Z score of 2.45 indicates that RXO is not a great score, but indicates only limited risk for bankruptcy at the moment.
RXO has a Altman-Z score (2.45) which is in line with its industry peers.
A Debt/Equity ratio of 0.24 indicates that RXO is not too dependend on debt financing.
RXO has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: RXO outperforms 58.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF N/A
Altman-Z 2.45
ROIC/WACC0.07
WACC9.66%
RXO Yearly LT Debt VS Equity VS FCFRXO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

RXO has a Current Ratio of 1.30. This is a normal value and indicates that RXO is financially healthy and should not expect problems in meeting its short term obligations.
RXO has a Current ratio of 1.30. This is in the better half of the industry: RXO outperforms 66.67% of its industry peers.
RXO has a Quick Ratio of 1.30. This is a normal value and indicates that RXO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.30, RXO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.3
Quick Ratio 1.3
RXO Yearly Current Assets VS Current LiabilitesRXO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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5

3. Growth

3.1 Past

RXO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.25%.
Looking at the last year, RXO shows a very strong growth in Revenue. The Revenue has grown by 32.38%.
RXO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.69% yearly.
EPS 1Y (TTM)-31.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)32.38%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%56.96%

3.2 Future

Based on estimates for the next years, RXO will show a very strong growth in Earnings Per Share. The EPS will grow by 99.34% on average per year.
RXO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.22% yearly.
EPS Next Y62.06%
EPS Next 2Y111.52%
EPS Next 3Y99.34%
EPS Next 5YN/A
Revenue Next Year34.35%
Revenue Next 2Y20.08%
Revenue Next 3Y15.82%
Revenue Next 5Y12.22%

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.
RXO Yearly Revenue VS EstimatesRXO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2B 4B 6B 8B 10B
RXO Yearly EPS VS EstimatesRXO Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

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1

4. Valuation

4.1 Price/Earnings Ratio

RXO is valuated quite expensively with a Price/Earnings ratio of 139.55.
Compared to the rest of the industry, the Price/Earnings ratio of RXO indicates a slightly more expensive valuation: RXO is more expensive than 69.23% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. RXO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 31.19, the valuation of RXO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RXO indicates a slightly more expensive valuation: RXO is more expensive than 64.10% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, RXO is valued a bit more expensive.
Industry RankSector Rank
PE 139.55
Fwd PE 31.19
RXO Price Earnings VS Forward Price EarningsRXO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RXO indicates a slightly more expensive valuation: RXO is more expensive than 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 24.6
RXO Per share dataRXO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as RXO's earnings are expected to grow with 99.34% in the coming years.
PEG (NY)2.25
PEG (5Y)N/A
EPS Next 2Y111.52%
EPS Next 3Y99.34%

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0

5. Dividend

5.1 Amount

No dividends for RXO!.
Industry RankSector Rank
Dividend Yield N/A

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RXO INC

NYSE:RXO (6/13/2025, 4:15:01 PM)

After market: 15.35 0 (0%)

15.35

-0.74 (-4.6%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)05-07 2025-05-07/bmo
Earnings (Next)08-05 2025-08-05/bmo
Inst Owners105.65%
Inst Owner Change4.68%
Ins Owners1.13%
Ins Owner Change2.7%
Market Cap2.52B
Analysts64.8
Price Target16.86 (9.84%)
Short Float %4.52%
Short Ratio3.86
Dividend
Industry RankSector 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)1
Avg EPS beat(2)-28.72%
Min EPS beat(2)-59.87%
Max EPS beat(2)2.42%
EPS beat(4)3
Avg EPS beat(4)-4.78%
Min EPS beat(4)-59.87%
Max EPS beat(4)23.76%
EPS beat(8)6
Avg EPS beat(8)56.26%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.93%
Min Revenue beat(2)-5.04%
Max Revenue beat(2)-0.83%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)5.55%
Revenue beat(8)2
Avg Revenue beat(8)-1.49%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-15.87%
PT rev (3m)-27.14%
EPS NQ rev (1m)-38.55%
EPS NQ rev (3m)-56.4%
EPS NY rev (1m)-22.55%
EPS NY rev (3m)-40.48%
Revenue NQ rev (1m)-7.6%
Revenue NQ rev (3m)-9.44%
Revenue NY rev (1m)-2.44%
Revenue NY rev (3m)-8.15%
Valuation
Industry RankSector Rank
PE 139.55
Fwd PE 31.19
P/S 0.5
P/FCF N/A
P/OCF N/A
P/B 1.59
P/tB N/A
EV/EBITDA 24.6
EPS(TTM)0.11
EY0.72%
EPS(NY)0.49
Fwd EY3.21%
FCF(TTM)-0.43
FCFYN/A
OCF(TTM)-0.13
OCFYN/A
SpS30.93
BVpS9.68
TBVpS-0.13
PEG (NY)2.25
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -9.26%
ROE -19.28%
ROCE 0.85%
ROIC 0.68%
ROICexc 0.68%
ROICexgc 2.21%
OM 0.39%
PM (TTM) N/A
GM 16.84%
FCFM N/A
ROA(3y)-1.25%
ROA(5y)1.16%
ROE(3y)-0.55%
ROE(5y)3.28%
ROIC(3y)6.68%
ROIC(5y)7.55%
ROICexc(3y)7.11%
ROICexc(5y)7.93%
ROICexgc(3y)19.6%
ROICexgc(5y)21.22%
ROCE(3y)8.45%
ROCE(5y)9.55%
ROICexcg growth 3Y-52.22%
ROICexcg growth 5YN/A
ROICexc growth 3Y-56.75%
ROICexc growth 5YN/A
OM growth 3Y-45.97%
OM growth 5Y-25.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.37%
GM growth 5Y-0.88%
F-Score3
Asset Turnover1.53
Health
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF N/A
Debt/EBITDA 3.15
Cap/Depr 47.57%
Cap/Sales 0.97%
Interest Coverage 0.71
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.3
Quick Ratio 1.3
Altman-Z 2.45
F-Score3
WACC9.66%
ROIC/WACC0.07
Cap/Depr(3y)71.18%
Cap/Depr(5y)64.7%
Cap/Sales(3y)1.27%
Cap/Sales(5y)1.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-31.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y62.06%
EPS Next 2Y111.52%
EPS Next 3Y99.34%
EPS Next 5YN/A
Revenue 1Y (TTM)32.38%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%56.96%
Revenue Next Year34.35%
Revenue Next 2Y20.08%
Revenue Next 3Y15.82%
Revenue Next 5Y12.22%
EBIT growth 1Y-58.33%
EBIT growth 3Y-46.51%
EBIT growth 5Y-20.08%
EBIT Next Year243.77%
EBIT Next 3Y98.25%
EBIT Next 5Y56.44%
FCF growth 1Y-136.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-108.43%
OCF growth 3YN/A
OCF growth 5YN/A