RXO INC (RXO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RXO - US74982T1034 - Common Stock
15.21 USD
+0.08 (+0.53%)
15.21 USD
0 (0%)
RXO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 42 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.
- RXO had a positive operating cash flow in the past year.
- Of the past 5 years RXO 4 years were profitable.
- RXO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- RXO has a Return On Assets of -2.47%. This is in the lower half of the industry: RXO underperforms 64.29% of its industry peers.
- With a Return On Equity value of -5.00%, RXO is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
- The Return On Invested Capital of RXO (0.38%) is worse than 66.67% 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 6.93%.
- 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
- The Operating Margin of RXO (0.19%) is worse than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of RXO has declined.
- RXO's Gross Margin of 16.53% is on the low side compared to the rest of the industry. RXO is outperformed by 71.43% of its industry peers.
- 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
- 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.
2.2 Solvency
- RXO has an Altman-Z score of 2.75. 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 (2.75) which is in line with 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 Debt to Equity ratio of 0.24. This is in the better half of the industry: RXO outperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.75 |
ROIC/WACC0.04
WACC10.31%
2.3 Liquidity
- A Current Ratio of 1.32 indicates that RXO should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.32, RXO perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
- A Quick Ratio of 1.32 indicates that RXO should not have too much problems paying its short term obligations.
- The Quick ratio of RXO (1.32) is better than 61.90% of its industry peers.
| 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%.
- The Revenue has grown by 53.85% in the past year. This is a very strong growth!
- 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 66.66% 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 Y-89.63%
EPS Next 2Y24.79%
EPS Next 3Y66.66%
EPS Next 5YN/A
Revenue Next Year27.13%
Revenue Next 2Y14.6%
Revenue Next 3Y11.71%
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
- A Price/Earnings ratio of 190.13 indicates a quite expensive valuation of RXO.
- Based on the Price/Earnings ratio, RXO is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of RXO to the average of the S&P500 Index (27.33), we can say RXO is valued expensively.
- The Price/Forward Earnings ratio is 88.79, which means the current valuation is very expensive for RXO.
- RXO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RXO is more expensive than 64.29% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, RXO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 190.13 | ||
| Fwd PE | 88.79 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RXO is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.67 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as RXO's earnings are expected to grow with 66.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y24.79%
EPS Next 3Y66.66%
5. Dividend
5.1 Amount
- No dividends for RXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
15.21
+0.08 (+0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-06 2026-02-06/bmo
Inst Owners110.21%
Inst Owner Change0.16%
Ins Owners0.65%
Ins Owner Change0.23%
Market Cap2.50B
Revenue(TTM)5.94B
Net Income(TTM)-79.00M
Analysts66.92
Price Target15.83 (4.08%)
Short Float %6.95%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0.36%
PT rev (3m)-4.18%
EPS NQ rev (1m)-17.26%
EPS NQ rev (3m)-129.53%
EPS NY rev (1m)-48.4%
EPS NY rev (3m)-92.23%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-6.26%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 190.13 | ||
| Fwd PE | 88.79 | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | 67.46 | ||
| P/B | 1.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.67 |
EPS(TTM)0.08
EY0.53%
EPS(NY)0.17
Fwd EY1.13%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)0.23
OCFY1.48%
SpS36.2
BVpS9.63
TBVpS-0.04
PEG (NY)N/A
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 | 2.75 |
F-Score4
WACC10.31%
ROIC/WACC0.04
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 Y-89.63%
EPS Next 2Y24.79%
EPS Next 3Y66.66%
EPS Next 5YN/A
Revenue 1Y (TTM)53.85%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%36.63%
Revenue Next Year27.13%
Revenue Next 2Y14.6%
Revenue Next 3Y11.71%
Revenue Next 5Y12.22%
EBIT growth 1Y-71.79%
EBIT growth 3Y-46.51%
EBIT growth 5Y-20.08%
EBIT Next Year168.04%
EBIT Next 3Y74.77%
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 for 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 expected EPS growth for RXO INC (RXO) stock?
The Earnings per Share (EPS) of RXO INC (RXO) is expected to decline by -89.63% in the next year.