RXO INC (RXO) Stock Fundamental Analysis
USA - NYSE:RXO - US74982T1034 - Common Stock
16.55 USD
-0.6 (-3.5%)
16.55 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. RXO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. RXO is valied quite expensively at the moment, while 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.
Of the past 5 years RXO 4 years were profitable.
Of the past 5 years RXO 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -9.62%, RXO is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
RXO's Return On Equity of -19.40% is on the low side compared to the rest of the industry. RXO is outperformed by 75.61% of its industry peers.
RXO has a worse Return On Invested Capital (0.71%) than 63.41% 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
With a Operating Margin value of 0.38%, RXO is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of RXO has declined.
RXO has a Gross Margin of 16.69%. This is in the lower half of the industry: RXO underperforms 70.73% of its industry peers.
RXO's Gross Margin has been stable in the last couple of years.
| 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
RXO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 2.78 indicates that RXO is not a great score, but indicates only limited risk for bankruptcy at the moment.
RXO's Altman-Z score of 2.78 is fine compared to the rest of the industry. RXO outperforms 63.41% of its industry peers.
RXO has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
RXO has a better Debt to Equity ratio (0.24) than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.78 |
ROIC/WACC0.08
WACC9.49%
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 has a better Current ratio (1.35) than 65.85% 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.
With a decent Quick ratio value of 1.35, RXO is doing good in the industry, outperforming 68.29% 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.
The Revenue has grown by 46.41% in the past year. This is a very strong growth!
RXO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.69% yearly.
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
Based on estimates for the next years, RXO will show a very strong growth in Earnings Per Share. The EPS will grow by 87.80% on average per year.
The Revenue is expected to grow by 12.22% on average over the next years. This is quite good.
EPS Next Y31.15%
EPS Next 2Y93.24%
EPS Next 3Y87.8%
EPS Next 5YN/A
Revenue Next Year30.71%
Revenue Next 2Y18.45%
Revenue Next 3Y13.92%
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
Based on the Price/Earnings ratio of 137.92, the valuation of RXO can be described as expensive.
Based on the Price/Earnings ratio, RXO is valued a bit more expensive than 68.29% of the companies in the same industry.
RXO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 40.29 indicates a quite expensive valuation of RXO.
60.98% of the companies in the same industry are cheaper than RXO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RXO to the average of the S&P500 Index (22.73), we can say RXO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 137.92 | ||
| Fwd PE | 40.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RXO is valued a bit more expensive than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RXO's earnings are expected to grow with 87.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.43
PEG (5Y)N/A
EPS Next 2Y93.24%
EPS Next 3Y87.8%
5. Dividend
5.1 Amount
No dividends for RXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.55
-0.6 (-3.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners106.69%
Inst Owner Change-2.65%
Ins Owners1.28%
Ins Owner Change0.41%
Market Cap2.71B
Analysts64.62
Price Target16.96 (2.48%)
Short Float %4.67%
Short Ratio3.9
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)-0.33%
PT rev (3m)0.75%
EPS NQ rev (1m)10.57%
EPS NQ rev (3m)-47.44%
EPS NY rev (1m)-10.81%
EPS NY rev (3m)-19.07%
Revenue NQ rev (1m)-3.98%
Revenue NQ rev (3m)-13.97%
Revenue NY rev (1m)-2.28%
Revenue NY rev (3m)-2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 137.92 | ||
| Fwd PE | 40.29 | ||
| P/S | 0.49 | ||
| P/FCF | N/A | ||
| P/OCF | 387.72 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.34 |
EPS(TTM)0.12
EY0.73%
EPS(NY)0.41
Fwd EY2.48%
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)0.04
OCFY0.26%
SpS33.9
BVpS9.68
TBVpS-0.07
PEG (NY)4.43
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 | 2.78 |
F-Score4
WACC9.49%
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 Y31.15%
EPS Next 2Y93.24%
EPS Next 3Y87.8%
EPS Next 5YN/A
Revenue 1Y (TTM)46.41%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%52.58%
Revenue Next Year30.71%
Revenue Next 2Y18.45%
Revenue Next 3Y13.92%
Revenue Next 5Y12.22%
EBIT growth 1Y-44.74%
EBIT growth 3Y-46.51%
EBIT growth 5Y-20.08%
EBIT Next Year236.02%
EBIT Next 3Y94.76%
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