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RXO INC (RXO) Stock Fundamental Analysis

NYSE:RXO - US74982T1034 - Common Stock

16.97 USD
+2.27 (+15.44%)
Last: 8/22/2025, 8:04:01 PM
16.97 USD
0 (0%)
After Hours: 8/22/2025, 8:04:01 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to RXO. RXO was compared to 40 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. While showing a medium growth rate, RXO is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

RXO had positive earnings in the past year.
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.
RXO Yearly Net Income VS EBIT VS OCF VS FCFRXO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 100M -100M 200M -200M 300M

1.2 Ratios

The Return On Assets of RXO (-9.62%) is worse than 85.00% of its industry peers.
With a Return On Equity value of -19.40%, RXO is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
RXO's Return On Invested Capital of 0.71% is on the low side compared to the rest of the industry. RXO is outperformed by 67.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RXO is in line with the industry average of 8.43%.
The last Return On Invested Capital (0.71%) 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 RankSector 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%
RXO Yearly ROA, ROE, ROICRXO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 10 -10

1.3 Margins

With a Operating Margin value of 0.38%, RXO is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
RXO's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 16.69%, RXO is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of RXO has remained more or less at the same level.
Industry RankSector 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%
RXO Yearly Profit, Operating, Gross MarginsRXO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 5 -5 10 15

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RXO 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.
RXO Yearly Shares OutstandingRXO Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 50M 100M 150M
RXO Yearly Total Debt VS Total AssetsRXO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

An Altman-Z score of 2.77 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 2.77, RXO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that RXO is not too dependend on debt financing.
The Debt to Equity ratio of RXO (0.24) is better than 62.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF N/A
Altman-Z 2.77
ROIC/WACC0.07
WACC9.59%
RXO Yearly LT Debt VS Equity VS FCFRXO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 1.35 indicates that RXO should not have too much problems paying its short term obligations.
The Current ratio of RXO (1.35) is better than 65.00% 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.
The Quick ratio of RXO (1.35) is better than 67.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.35
Quick Ratio 1.35
RXO Yearly Current Assets VS Current LiabilitesRXO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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6

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%.
The Revenue has been growing slightly by 7.69% on average over the past years.
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 87.80% on average over the next years. This is a very strong growth
Based on estimates for the next years, RXO will show a quite strong growth in Revenue. The Revenue will grow by 12.22% on average per year.
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.
RXO Yearly Revenue VS EstimatesRXO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2B 4B 6B 8B 10B
RXO Yearly EPS VS EstimatesRXO Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

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1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 141.42 indicates a quite expensive valuation of RXO.
Based on the Price/Earnings ratio, RXO is valued a bit more expensive than 72.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, RXO is valued quite expensively.
A Price/Forward Earnings ratio of 41.31 indicates a quite expensive valuation of RXO.
Based on the Price/Forward Earnings ratio, RXO is valued a bit more expensive than 62.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RXO to the average of the S&P500 Index (35.82), we can say RXO is valued inline with the index average.
Industry RankSector Rank
PE 141.42
Fwd PE 41.31
RXO Price Earnings VS Forward Price EarningsRXO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RXO indicates a slightly more expensive valuation: RXO is more expensive than 67.50% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 23.12
RXO Per share dataRXO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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 87.80% in the coming years.
PEG (NY)4.54
PEG (5Y)N/A
EPS Next 2Y93.24%
EPS Next 3Y87.8%

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0

5. Dividend

5.1 Amount

No dividends for RXO!.
Industry RankSector Rank
Dividend Yield N/A

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RXO INC

NYSE:RXO (8/22/2025, 8:04:01 PM)

After market: 16.97 0 (0%)

16.97

+2.27 (+15.44%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)08-07 2025-08-07/bmo
Earnings (Next)11-05 2025-11-05/bmo
Inst Owners106.69%
Inst Owner Change-2.7%
Ins Owners1.28%
Ins Owner Change0.57%
Market Cap2.78B
Analysts64.62
Price Target16.99 (0.12%)
Short Float %4.24%
Short Ratio3.81
Dividend
Industry RankSector 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)-15.24%
EPS NQ rev (1m)-4.39%
EPS NQ rev (3m)-52.72%
EPS NY rev (1m)-10.81%
EPS NY rev (3m)-19.07%
Revenue NQ rev (1m)-2.67%
Revenue NQ rev (3m)-12.8%
Revenue NY rev (1m)-2.48%
Revenue NY rev (3m)-3.74%
Valuation
Industry RankSector Rank
PE 141.42
Fwd PE 41.31
P/S 0.5
P/FCF N/A
P/OCF 397.56
P/B 1.75
P/tB N/A
EV/EBITDA 23.12
EPS(TTM)0.12
EY0.71%
EPS(NY)0.41
Fwd EY2.42%
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)0.04
OCFY0.25%
SpS33.9
BVpS9.68
TBVpS-0.07
PEG (NY)4.54
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 2.77
F-Score4
WACC9.59%
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)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