RXO INC (RXO) Stock Fundamental Analysis
USA - NYSE:RXO - US74982T1034 - Common Stock
16.64 USD
+0.67 (+4.2%)
16.64 USD
0 (0%)
Overall RXO gets a fundamental rating of 3 out of 10. We evaluated RXO against 42 industry peers in the Ground Transportation industry. While RXO seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
RXO had a positive operating cash flow in the past year.
RXO had positive earnings in 4 of the past 5 years.
Of the past 5 years RXO 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -9.62%, RXO is doing worse than 78.57% of the companies in the same industry.
RXO has a worse Return On Equity (-19.40%) than 73.81% of its industry peers.
The Return On Invested Capital of RXO (0.71%) is worse than 61.90% of its industry peers.
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 7.92%.
The 3 year average ROIC (6.68%) for RXO is well above the current ROIC(0.71%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.62% | ||
| ROE | -19.4% | ||
| ROIC | 0.71% |
ROA(3y)-1.25%
ROA(5y)1.16%
ROE(3y)-0.55%
ROE(5y)3.28%
ROIC(3y)6.68%
ROIC(5y)7.55%
1.3 Margins
The Operating Margin of RXO (0.38%) is worse than 61.90% of its industry peers.
In the last couple of years the Operating Margin of RXO has declined.
RXO has a worse Gross Margin (16.69%) than 69.05% 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 | 0.38% | ||
| PM (TTM) | N/A | ||
| GM | 16.69% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RXO is destroying value.
Compared to 1 year ago, RXO has more shares outstanding
RXO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.75 indicates that RXO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.75, RXO is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that RXO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.24, RXO is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.75 |
ROIC/WACC0.08
WACC9.46%
2.3 Liquidity
RXO has a Current Ratio of 1.35. This is a normal value and indicates that RXO is financially healthy and should not expect problems in meeting its short term obligations.
RXO's Current ratio of 1.35 is fine compared to the rest of the industry. RXO outperforms 66.67% of its industry peers.
RXO has a Quick Ratio of 1.35. This is a normal value and indicates that RXO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.35, RXO is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.09% over the past year.
Looking at the last year, RXO shows a very strong growth in Revenue. The Revenue has grown by 46.41%.
Measured over the past years, RXO shows a small growth in Revenue. The Revenue has been growing by 7.69% on average per year.
EPS 1Y (TTM)9.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)46.41%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%52.58%
3.2 Future
The Earnings Per Share is expected to grow by 87.59% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.22% on average over the next years. This is quite good.
EPS Next Y33.34%
EPS Next 2Y90.34%
EPS Next 3Y87.59%
EPS Next 5YN/A
Revenue Next Year30.31%
Revenue Next 2Y17.94%
Revenue Next 3Y13.6%
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.
4. Valuation
4.1 Price/Earnings Ratio
RXO is valuated quite expensively with a Price/Earnings ratio of 138.67.
Based on the Price/Earnings ratio, RXO is valued a bit more expensive than 64.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. RXO is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 41.75 indicates a quite expensive valuation of RXO.
The rest of the industry has a similar Price/Forward Earnings ratio as RXO.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, RXO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 138.67 | ||
| Fwd PE | 41.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RXO is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RXO does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as RXO's earnings are expected to grow with 87.59% in the coming years.
PEG (NY)4.16
PEG (5Y)N/A
EPS Next 2Y90.34%
EPS Next 3Y87.59%
5. Dividend
5.1 Amount
No dividends for RXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.64
+0.67 (+4.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners106.46%
Inst Owner Change-2.68%
Ins Owners0.65%
Ins Owner Change0.26%
Market Cap2.73B
Analysts64.8
Price Target16.52 (-0.72%)
Short Float %5.83%
Short Ratio4.69
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)1
Avg EPS beat(2)20.59%
Min EPS beat(2)-59.87%
Max EPS beat(2)101.04%
EPS beat(4)3
Avg EPS beat(4)14.53%
Min EPS beat(4)-59.87%
Max EPS beat(4)101.04%
EPS beat(8)7
Avg EPS beat(8)69.32%
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)-3.72%
Min Revenue beat(2)-5.04%
Max Revenue beat(2)-2.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)5.55%
Revenue beat(8)2
Avg Revenue beat(8)-1.09%
Revenue beat(12)2
Avg Revenue beat(12)-2.34%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.75%
PT rev (3m)-1.68%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)-12.8%
EPS NY rev (1m)1.67%
EPS NY rev (3m)-10.27%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-5.18%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 138.67 | ||
| Fwd PE | 41.75 | ||
| P/S | 0.49 | ||
| P/FCF | N/A | ||
| P/OCF | 389.83 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.73 |
EPS(TTM)0.12
EY0.72%
EPS(NY)0.4
Fwd EY2.39%
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)0.04
OCFY0.26%
SpS33.9
BVpS9.68
TBVpS-0.07
PEG (NY)4.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.62% | ||
| ROE | -19.4% | ||
| ROCE | 0.9% | ||
| ROIC | 0.71% | ||
| ROICexc | 0.72% | ||
| ROICexgc | 2.36% | ||
| OM | 0.38% | ||
| PM (TTM) | N/A | ||
| GM | 16.69% | ||
| 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-Score4
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 44.83% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 0.75 | ||
| Cash Conversion | 5.11% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 2.75 |
F-Score4
WACC9.46%
ROIC/WACC0.08
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)9.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y33.34%
EPS Next 2Y90.34%
EPS Next 3Y87.59%
EPS Next 5YN/A
Revenue 1Y (TTM)46.41%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%52.58%
Revenue Next Year30.31%
Revenue Next 2Y17.94%
Revenue Next 3Y13.6%
Revenue Next 5Y12.22%
EBIT growth 1Y-44.74%
EBIT growth 3Y-46.51%
EBIT growth 5Y-20.08%
EBIT Next Year234.95%
EBIT Next 3Y84.92%
EBIT Next 5Y56.44%
FCF growth 1Y-132.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-96.48%
OCF growth 3YN/A
OCF growth 5YN/A