RXO INC (RXO) Stock Fundamental Analysis
NYSE:RXO - New York Stock Exchange, Inc. - US74982T1034 - Common Stock - Currency: USD
Taking everything into account, RXO scores 3 out of 10 in our fundamental rating. RXO was compared to 40 industry peers in the Ground Transportation industry. While RXO seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, RXO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year RXO was profitable.
RXO had a negative operating cash flow in the past year.
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.
1.2 Ratios
RXO has a worse Return On Assets (-9.26%) than 85.00% of its industry peers.
RXO has a Return On Equity of -19.28%. This is amonst the worse of the industry: RXO underperforms 80.00% of its industry peers.
RXO's Return On Invested Capital of 0.68% is on the low side compared to the rest of the industry. RXO is outperformed by 65.00% 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 8.58%.
The 3 year average ROIC (6.68%) for RXO is well above the current ROIC(0.68%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector 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%
1.3 Margins
RXO has a worse Operating Margin (0.39%) than 65.00% of its industry peers.
In the last couple of years the Operating Margin of RXO has declined.
Looking at the Gross Margin, with a value of 16.84%, RXO is doing worse than 75.00% of the companies in the same industry.
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 | 0.39% | ||
| 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RXO is destroying value.
The number of shares outstanding for RXO has been increased compared to 1 year ago.
RXO has a better debt/assets ratio than last year.
2.2 Solvency
RXO has an Altman-Z score of 2.49. This is not the best score and indicates that RXO is in the grey zone with still only limited risk for bankruptcy at the moment.
RXO's Altman-Z score of 2.49 is in line compared to the rest of the industry. RXO outperforms 52.50% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that RXO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, RXO is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.49 |
ROIC/WACC0.07
WACC9.54%
2.3 Liquidity
A Current Ratio of 1.30 indicates that RXO should not have too much problems paying its short term obligations.
RXO's Current ratio of 1.30 is fine compared to the rest of the industry. RXO outperforms 65.00% of its industry peers.
A Quick Ratio of 1.30 indicates that RXO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.30, RXO is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for RXO have decreased strongly by -31.25% in the last year.
RXO shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.38%.
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)-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
The Earnings Per Share is expected to grow by 99.34% 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 Y48.61%
EPS Next 2Y107.49%
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
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 152.91, RXO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RXO indicates a slightly more expensive valuation: RXO is more expensive than 70.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, RXO is valued quite expensively.
With a Price/Forward Earnings ratio of 35.52, RXO can be considered very expensive at the moment.
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 65.00% of the companies listed in the same industry.
RXO is valuated expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 152.91 | ||
| Fwd PE | 35.52 |
4.2 Price Multiples
70.00% of the companies in the same industry are cheaper than RXO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.57 |
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)3.15
PEG (5Y)N/A
EPS Next 2Y107.49%
EPS Next 3Y99.34%
5. Dividend
5.1 Amount
RXO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.82
-0.02 (-0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners109.35%
Inst Owner Change4.68%
Ins Owners1.28%
Ins Owner Change2.7%
Market Cap2.76B
Analysts64.8
Price Target16.8 (-0.12%)
Short Float %5.44%
Short Ratio4.67
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)-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)-16.17%
PT rev (3m)-26.98%
EPS NQ rev (1m)-3.15%
EPS NQ rev (3m)-53.52%
EPS NY rev (1m)-8.3%
EPS NY rev (3m)-43.78%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-9.32%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-8.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 152.91 | ||
| Fwd PE | 35.52 | ||
| P/S | 0.54 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.57 |
EPS(TTM)0.11
EY0.65%
EPS(NY)0.47
Fwd EY2.82%
FCF(TTM)-0.43
FCFYN/A
OCF(TTM)-0.13
OCFYN/A
SpS30.93
BVpS9.68
TBVpS-0.13
PEG (NY)3.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.49 |
F-Score3
WACC9.54%
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 Y48.61%
EPS Next 2Y107.49%
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