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RXO INC (RXO) Stock Fundamental Analysis

USA - NYSE:RXO - US74982T1034 - Common Stock

17.44 USD
-0.26 (-1.47%)
Last: 10/28/2025, 8:20:54 PM
16.99 USD
-0.45 (-2.58%)
Pre-Market: 10/29/2025, 8:29:54 AM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to RXO. RXO was compared to 42 industry peers in the Ground Transportation industry. While RXO seems to be doing ok healthwise, there are quite some concerns on its profitability. 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

In the past year RXO was profitable.
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.
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

RXO's Return On Assets of -9.62% is on the low side compared to the rest of the industry. RXO is outperformed by 76.19% of its industry peers.
RXO's Return On Equity of -19.40% is on the low side compared to the rest of the industry. RXO is outperformed by 71.43% of its industry peers.
RXO has a Return On Invested Capital of 0.71%. This is comparable to the rest of the industry: RXO outperforms 40.48% 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 7.72%.
The 3 year average ROIC (6.68%) for RXO is well above the current ROIC(0.71%). The reason for the recent decline needs to be investigated.
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

Looking at the Operating Margin, with a value of 0.38%, RXO is in line with its industry, outperforming 40.48% of the companies in the same industry.
In the last couple of years the Operating Margin of RXO has declined.
With a Gross Margin value of 16.69%, RXO is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
RXO's Gross Margin has been stable in the last couple of years.
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.
RXO has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, RXO has an improved debt to assets ratio.
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 2.79 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 2.79, RXO is in the better half of the industry, outperforming 69.05% 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 comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF N/A
Altman-Z 2.79
ROIC/WACC0.08
WACC9.37%
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 66.67% of its industry peers.
A Quick Ratio of 1.35 indicates that RXO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.35, RXO is doing good in the industry, outperforming 69.05% of the companies in the same industry.
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

RXO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.09%, which is quite good.
Looking at the last year, RXO shows a very strong growth in Revenue. The Revenue has grown by 46.41%.
RXO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.69% yearly.
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

Based on estimates for the next years, RXO will show a very strong growth in Earnings Per Share. The EPS will grow by 81.00% on average per year.
The Revenue is expected to grow by 12.22% on average over the next years. This is quite good.
EPS Next Y9.94%
EPS Next 2Y80.43%
EPS Next 3Y81%
EPS Next 5YN/A
Revenue Next Year28.44%
Revenue Next 2Y17.27%
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.
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

The Price/Earnings ratio is 145.33, which means the current valuation is very expensive for RXO.
Compared to the rest of the industry, the Price/Earnings ratio of RXO indicates a slightly more expensive valuation: RXO is more expensive than 61.90% of the companies listed in the same industry.
RXO is valuated expensively when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 48.70, the valuation of RXO can be described as expensive.
RXO's Price/Forward Earnings is on the same level as the industry average.
RXO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.87.
Industry RankSector Rank
PE 145.33
Fwd PE 48.7
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

Based on the Enterprise Value to EBITDA ratio, RXO is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 23.69
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.
RXO's earnings are expected to grow with 81.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)14.62
PEG (5Y)N/A
EPS Next 2Y80.43%
EPS Next 3Y81%

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0

5. Dividend

5.1 Amount

RXO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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RXO INC

NYSE:RXO (10/28/2025, 8:20:54 PM)

Premarket: 16.99 -0.45 (-2.58%)

17.44

-0.26 (-1.47%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)08-07 2025-08-07/bmo
Earnings (Next)11-06 2025-11-06/bmo
Inst Owners106.46%
Inst Owner Change0.01%
Ins Owners0.65%
Ins Owner Change0.35%
Market Cap2.86B
Revenue(TTM)5.56B
Net Income(TTM)-308000000
Analysts64.8
Price Target16.52 (-5.28%)
Short Float %7.1%
Short Ratio5.8
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)-2.63%
PT rev (3m)-3.07%
EPS NQ rev (1m)-22.87%
EPS NQ rev (3m)-18.3%
EPS NY rev (1m)-17.55%
EPS NY rev (3m)-25.24%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-5.68%
Revenue NY rev (1m)-1.46%
Revenue NY rev (3m)-4.17%
Valuation
Industry RankSector Rank
PE 145.33
Fwd PE 48.7
P/S 0.51
P/FCF N/A
P/OCF 408.57
P/B 1.8
P/tB N/A
EV/EBITDA 23.69
EPS(TTM)0.12
EY0.69%
EPS(NY)0.36
Fwd EY2.05%
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)0.04
OCFY0.24%
SpS33.9
BVpS9.68
TBVpS-0.07
PEG (NY)14.62
PEG (5Y)N/A
Graham Number5.11
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%
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 Turnover1.74
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 2.79
F-Score4
WACC9.37%
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)9.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y9.94%
EPS Next 2Y80.43%
EPS Next 3Y81%
EPS Next 5YN/A
Revenue 1Y (TTM)46.41%
Revenue growth 3Y-1%
Revenue growth 5Y7.69%
Sales Q2Q%52.58%
Revenue Next Year28.44%
Revenue Next 2Y17.27%
Revenue Next 3Y13.3%
Revenue Next 5Y12.22%
EBIT growth 1Y-44.74%
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-132.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-96.48%
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.