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 40 industry peers in the Ground Transportation industry. While RXO seems to be doing ok healthwise, 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.
In the past year RXO has reported a negative cash flow from operations.
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
RXO has a worse Return On Assets (-9.26%) than 85.00% of its industry peers.
RXO's Return On Equity of -19.28% is on the low side compared to the rest of the industry. RXO is outperformed by 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.68%, RXO is doing worse than 65.00% of the companies in the same industry.
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 8.55%.
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
RXO has a worse Operating Margin (0.39%) than 65.00% of its industry peers.
RXO's Operating Margin has declined in the last couple of years.
RXO has a Gross Margin of 16.84%. This is in the lower half of the industry: RXO underperforms 75.00% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RXO is destroying value.
The number of shares outstanding for RXO has been increased compared to 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 2.39. 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.
The Altman-Z score of RXO (2.39) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.24 indicates that RXO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, RXO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.39 |
ROIC/WACC0.08
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.30 indicates that RXO should not have too much problems paying its short term obligations.
RXO's Current ratio of 1.30 is fine compared to the rest of the industry. RXO outperforms 65.00% of its industry peers.
A Quick Ratio of 1.30 indicates that RXO should not have too much problems paying its short term obligations.
RXO's Quick ratio of 1.30 is fine compared to the rest of the industry. RXO outperforms 65.00% 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%.
RXO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.69% yearly.
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
Based on estimates for the next years, RXO will show a very strong growth in Earnings Per Share. The EPS will grow by 97.11% on average per year.
RXO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.22% yearly.
EPS Next Y47.06%
EPS Next 2Y105.02%
EPS Next 3Y97.11%
EPS Next 5YN/A
Revenue Next Year33.76%
Revenue Next 2Y19.73%
Revenue Next 3Y15.24%
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 136.36, 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 72.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. RXO is valued rather expensively when compared to this.
RXO is valuated quite expensively with a Price/Forward Earnings ratio of 32.44.
RXO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RXO is more expensive than 65.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RXO to the average of the S&P500 Index (36.21), we can say RXO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 136.36 | ||
| Fwd PE | 32.44 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.14 |
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 97.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.9
PEG (5Y)N/A
EPS Next 2Y105.02%
EPS Next 3Y97.11%
5. Dividend
5.1 Amount
No dividends for RXO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15
-0.45 (-2.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners109.35%
Inst Owner Change-2.73%
Ins Owners1.28%
Ins Owner Change0.57%
Market Cap2.46B
Analysts64.8
Price Target17.04 (13.6%)
Short Float %4.6%
Short Ratio4.6
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)1.44%
PT rev (3m)-16.21%
EPS NQ rev (1m)-23.05%
EPS NQ rev (3m)-50.23%
EPS NY rev (1m)-1.04%
EPS NY rev (3m)-29.72%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-7.92%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-6.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 136.36 | ||
| Fwd PE | 32.44 | ||
| P/S | 0.48 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.14 |
EPS(TTM)0.11
EY0.73%
EPS(NY)0.46
Fwd EY3.08%
FCF(TTM)-0.43
FCFYN/A
OCF(TTM)-0.13
OCFYN/A
SpS30.93
BVpS9.68
TBVpS-0.13
PEG (NY)2.9
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 | 2.39 |
F-Score3
WACC8.48%
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)-31.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y47.06%
EPS Next 2Y105.02%
EPS Next 3Y97.11%
EPS Next 5YN/A
Revenue 1Y (TTM)32.38%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%56.96%
Revenue Next Year33.76%
Revenue Next 2Y19.73%
Revenue Next 3Y15.24%
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