RXO INC (RXO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RXO - US74982T1034 - Common Stock
12.16 USD
+0.69 (+6.02%)
12.16 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to RXO. RXO was compared to 43 industry peers in the Ground Transportation industry. The financial health of RXO is average, but 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
RXO had positive earnings in the past year.
In the past year RXO had a positive 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.
1.2 Ratios
With a Return On Assets value of -2.47%, RXO is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
The Return On Equity of RXO (-5.00%) is worse than 65.12% of its industry peers.
With a Return On Invested Capital value of 0.38%, RXO is not doing good in the industry: 65.12% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for RXO is in line with the industry average of 6.88%.
The last Return On Invested Capital (0.38%) 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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.47% | ||
| ROE | -5% | ||
| ROIC | 0.38% |
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 Operating Margin of 0.19%. This is in the lower half of the industry: RXO underperforms 65.12% of its industry peers.
RXO's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 16.53%, RXO is not doing good in the industry: 69.77% of the companies in the same industry are doing better.
RXO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.19% | ||
| PM (TTM) | N/A | ||
| GM | 16.53% |
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.
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 2.57. 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 has a Altman-Z score of 2.57. This is in the better half of the industry: RXO outperforms 60.47% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that RXO is not too dependend on debt financing.
RXO's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. RXO outperforms 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.57 |
ROIC/WACC0.03
WACC11.32%
2.3 Liquidity
A Current Ratio of 1.32 indicates that RXO should not have too much problems paying its short term obligations.
RXO has a Current ratio of 1.32. This is in the better half of the industry: RXO outperforms 60.47% of its industry peers.
RXO has a Quick Ratio of 1.32. 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 1.32, RXO is doing good in the industry, outperforming 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
RXO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.27%.
Looking at the last year, RXO shows a very strong growth in Revenue. The Revenue has grown by 53.85%.
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)-27.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-80%
Revenue 1Y (TTM)53.85%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%36.63%
3.2 Future
The Earnings Per Share is expected to grow by 81.00% 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 Y6.55%
EPS Next 2Y84.45%
EPS Next 3Y81%
EPS Next 5YN/A
Revenue Next Year29.27%
Revenue Next 2Y17.22%
Revenue Next 3Y13.3%
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
Based on the Price/Earnings ratio of 152.00, the valuation of RXO can be described as expensive.
Based on the Price/Earnings ratio, RXO is valued a bit more expensive than 62.79% of the companies in the same industry.
RXO is valuated expensively when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
RXO is valuated quite expensively with a Price/Forward Earnings ratio of 32.49.
RXO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.45. RXO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 152 | ||
| Fwd PE | 32.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RXO is valued a bit more expensive than the industry average as 60.47% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.97 |
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 81.00% in the coming years.
PEG (NY)23.19
PEG (5Y)N/A
EPS Next 2Y84.45%
EPS Next 3Y81%
5. Dividend
5.1 Amount
RXO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.16
+0.69 (+6.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners106.46%
Inst Owner Change3.78%
Ins Owners0.65%
Ins Owner Change0.09%
Market Cap1.99B
Revenue(TTM)5.94B
Net Income(TTM)-79.00M
Analysts64.62
Price Target15.77 (29.69%)
Short Float %7.65%
Short Ratio5.68
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)14.37%
Min EPS beat(2)-72.3%
Max EPS beat(2)101.04%
EPS beat(4)2
Avg EPS beat(4)-7.18%
Min EPS beat(4)-72.3%
Max EPS beat(4)101.04%
EPS beat(8)6
Avg EPS beat(8)10.08%
EPS beat(12)9
Avg EPS beat(12)46.37%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.1%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.8%
Revenue beat(4)0
Avg Revenue beat(4)-2.52%
Min Revenue beat(4)-5.04%
Max Revenue beat(4)-0.83%
Revenue beat(8)1
Avg Revenue beat(8)-1.44%
Revenue beat(12)2
Avg Revenue beat(12)-2.37%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.53%
PT rev (3m)-7.15%
EPS NQ rev (1m)-97.24%
EPS NQ rev (3m)-97.48%
EPS NY rev (1m)-3.08%
EPS NY rev (3m)-18.76%
Revenue NQ rev (1m)-3.68%
Revenue NQ rev (3m)-7.79%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 152 | ||
| Fwd PE | 32.49 | ||
| P/S | 0.34 | ||
| P/FCF | N/A | ||
| P/OCF | 53.89 | ||
| P/B | 1.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.97 |
EPS(TTM)0.08
EY0.66%
EPS(NY)0.37
Fwd EY3.08%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)0.23
OCFY1.86%
SpS36.22
BVpS9.63
TBVpS-0.04
PEG (NY)23.19
PEG (5Y)N/A
Graham Number4.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.47% | ||
| ROE | -5% | ||
| ROCE | 0.48% | ||
| ROIC | 0.38% | ||
| ROICexc | 0.38% | ||
| ROICexgc | 1.27% | ||
| OM | 0.19% | ||
| PM (TTM) | N/A | ||
| GM | 16.53% | ||
| 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%
ROICexgc growth 3Y-52.22%
ROICexgc 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 Turnover1.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 45.45% | ||
| Cap/Sales | 0.93% | ||
| Interest Coverage | 0.35 | ||
| Cash Conversion | 28.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.57 |
F-Score4
WACC11.32%
ROIC/WACC0.03
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)-27.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-80%
EPS Next Y6.55%
EPS Next 2Y84.45%
EPS Next 3Y81%
EPS Next 5YN/A
Revenue 1Y (TTM)53.85%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%36.63%
Revenue Next Year29.27%
Revenue Next 2Y17.22%
Revenue Next 3Y13.3%
Revenue Next 5Y12.22%
EBIT growth 1Y-71.79%
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-121.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-74.66%
OCF growth 3YN/A
OCF growth 5YN/A
RXO INC / RXO FAQ
What is the fundamental rating for RXO stock?
ChartMill assigns a fundamental rating of 3 / 10 to RXO.
What is the valuation status of RXO INC (RXO) stock?
ChartMill assigns a valuation rating of 1 / 10 to RXO INC (RXO). This can be considered as Overvalued.
What is the profitability of RXO stock?
RXO INC (RXO) has a profitability rating of 3 / 10.
What is the financial health of RXO INC (RXO) stock?
The financial health rating of RXO INC (RXO) is 4 / 10.