RXO INC (RXO) Stock Fundamental Analysis
NYSE:RXO - New York Stock Exchange, Inc. - US74982T1034 - Common Stock - Currency: USD
Overall RXO gets a fundamental rating of 3 out of 10. We evaluated RXO against 39 industry peers in the Ground Transportation industry. The financial health of RXO is average, but there are quite some concerns on its profitability. RXO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RXO had positive earnings in the past year.
RXO had a negative 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 -9.26%, RXO is doing worse than 84.62% of the companies in the same industry.
The Return On Equity of RXO (-19.28%) is worse than 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.
The Average Return On Invested Capital over the past 3 years for RXO is in line with the industry average of 8.06%.
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
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.
RXO's Operating Margin has declined in the last couple of years.
The Gross Margin of RXO (16.84%) is worse than 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 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
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
The debt/assets ratio for RXO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.44 indicates that RXO is not a great score, but indicates only limited risk for bankruptcy at the moment.
RXO's Altman-Z score of 2.44 is in line compared to the rest of the industry. RXO outperforms 56.41% 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.
With a Debt to Equity ratio value of 0.24, RXO perfoms like the industry average, outperforming 58.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.44 |
ROIC/WACC0.07
WACC9.73%
2.3 Liquidity
A Current Ratio of 1.30 indicates that RXO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.30, RXO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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.
The Quick ratio of RXO (1.30) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
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%.
The Revenue has been growing slightly by 7.69% on average over the past years.
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
RXO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 99.34% yearly.
The Revenue is expected to grow by 12.22% on average over the next years. This is quite good.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 147.36, RXO can be considered very expensive at the moment.
RXO's Price/Earnings ratio is a bit more expensive when compared to the industry. RXO is more expensive than 69.23% 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 26.53.
Based on the Price/Forward Earnings ratio of 32.94, the valuation of RXO can be described as expensive.
Based on the Price/Forward Earnings ratio, RXO is valued a bit more expensive than 64.10% of the companies in the same industry.
RXO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 147.36 | ||
| Fwd PE | 32.94 |
4.2 Price Multiples
RXO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RXO is more expensive than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.52 |
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.
RXO's earnings are expected to grow with 99.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.37
PEG (5Y)N/A
EPS Next 2Y111.52%
EPS Next 3Y99.34%
5. Dividend
5.1 Amount
RXO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.21
+0.18 (+1.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners105.65%
Inst Owner Change4.68%
Ins Owners1.13%
Ins Owner Change2.7%
Market Cap2.66B
Analysts64.8
Price Target16.86 (4.01%)
Short Float %4.52%
Short Ratio3.86
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)-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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 147.36 | ||
| Fwd PE | 32.94 | ||
| P/S | 0.52 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.52 |
EPS(TTM)0.11
EY0.68%
EPS(NY)0.49
Fwd EY3.04%
FCF(TTM)-0.43
FCFYN/A
OCF(TTM)-0.13
OCFYN/A
SpS30.93
BVpS9.68
TBVpS-0.13
PEG (NY)2.37
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 | 2.44 |
F-Score3
WACC9.73%
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