XPO INC (XPO) Stock Fundamental Analysis
NYSE:XPO - New York Stock Exchange, Inc. - US9837931008 - Common Stock - Currency: USD
XPO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 40 industry peers in the Ground Transportation industry. XPO scores excellent on profitability, but there are concerns on its financial health. XPO is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year XPO was profitable.
XPO had a positive operating cash flow in the past year.
In the past 5 years XPO has always been profitable.
Each year in the past 5 years XPO had a positive operating cash flow.
1.2 Ratios
XPO has a Return On Assets (4.24%) which is in line with its industry peers.
With a decent Return On Equity value of 19.37%, XPO is doing good in the industry, outperforming 77.50% of the companies in the same industry.
XPO has a better Return On Invested Capital (8.21%) than 67.50% of its industry peers.
XPO had an Average Return On Invested Capital over the past 3 years of 7.94%. This is in line with the industry average of 8.50%.
The last Return On Invested Capital (8.21%) for XPO is above the 3 year average (7.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 19.37% | ||
| ROIC | 8.21% |
ROA(3y)6.05%
ROA(5y)4.5%
ROE(3y)34.97%
ROE(5y)27.47%
ROIC(3y)7.94%
ROIC(5y)5.64%
1.3 Margins
With a decent Profit Margin value of 4.31%, XPO is doing good in the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of XPO has grown nicely.
With a decent Operating Margin value of 8.60%, XPO is doing good in the industry, outperforming 67.50% of the companies in the same industry.
In the last couple of years the Operating Margin of XPO has grown nicely.
XPO's Gross Margin of 59.98% is fine compared to the rest of the industry. XPO outperforms 70.00% of its industry peers.
XPO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.6% | ||
| PM (TTM) | 4.31% | ||
| GM | 59.98% |
OM growth 3Y28.41%
OM growth 5Y12.76%
PM growth 3Y0.91%
PM growth 5Y6.2%
GM growth 3Y17.98%
GM growth 5Y13.75%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XPO is destroying value.
XPO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, XPO has more shares outstanding
Compared to 1 year ago, XPO has an improved debt to assets ratio.
2.2 Solvency
XPO has an Altman-Z score of 2.73. This is not the best score and indicates that XPO is in the grey zone with still only limited risk for bankruptcy at the moment.
XPO's Altman-Z score of 2.73 is fine compared to the rest of the industry. XPO outperforms 70.00% of its industry peers.
XPO has a debt to FCF ratio of 22.27. This is a negative value and a sign of low solvency as XPO would need 22.27 years to pay back of all of its debts.
XPO has a Debt to FCF ratio (22.27) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.88 is on the high side and indicates that XPO has dependencies on debt financing.
The Debt to Equity ratio of XPO (1.88) is worse than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 22.27 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.87
WACC9.45%
2.3 Liquidity
XPO has a Current Ratio of 1.02. This is a normal value and indicates that XPO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.02, XPO is in line with its industry, outperforming 50.00% of the companies in the same industry.
XPO has a Quick Ratio of 1.02. This is a normal value and indicates that XPO is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.02, XPO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
XPO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.07%.
XPO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.25% yearly.
XPO shows a decrease in Revenue. In the last year, the revenue decreased by -0.10%.
XPO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.45% yearly.
EPS 1Y (TTM)3.07%
EPS 3Y-11.82%
EPS 5Y-1.25%
EPS Q2Q%-6.25%
Revenue 1Y (TTM)-0.1%
Revenue growth 3Y3.87%
Revenue growth 5Y-5.45%
Sales Q2Q%0.05%
3.2 Future
Based on estimates for the next years, XPO will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.09% on average per year.
Based on estimates for the next years, XPO will show a small growth in Revenue. The Revenue will grow by 4.61% on average per year.
EPS Next Y-4.56%
EPS Next 2Y10.21%
EPS Next 3Y13.01%
EPS Next 5Y16.09%
Revenue Next Year-0.58%
Revenue Next 2Y1.72%
Revenue Next 3Y2.66%
Revenue Next 5Y4.61%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 32.26, the valuation of XPO can be described as expensive.
XPO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.41. XPO is valued slightly more expensive when compared to this.
XPO is valuated quite expensively with a Price/Forward Earnings ratio of 25.53.
60.00% of the companies in the same industry are cheaper than XPO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.87, XPO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.26 | ||
| Fwd PE | 25.53 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as XPO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XPO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 91.67 | ||
| EV/EBITDA | 14.53 |
4.3 Compensation for Growth
The decent profitability rating of XPO may justify a higher PE ratio.
XPO's earnings are expected to grow with 13.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.21%
EPS Next 3Y13.01%
5. Dividend
5.1 Amount
No dividends for XPO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
119.05
-1.17 (-0.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners105.91%
Inst Owner Change-1.17%
Ins Owners1.81%
Ins Owner Change0.13%
Market Cap14.03B
Analysts82
Price Target139.91 (17.52%)
Short Float %7.13%
Short Ratio6.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.74%
Min EPS beat(2)4.94%
Max EPS beat(2)10.54%
EPS beat(4)4
Avg EPS beat(4)16.4%
Min EPS beat(4)4.94%
Max EPS beat(4)38.89%
EPS beat(8)8
Avg EPS beat(8)19.47%
EPS beat(12)12
Avg EPS beat(12)17.63%
EPS beat(16)15
Avg EPS beat(16)18.56%
Revenue beat(2)1
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)0.43%
Revenue beat(4)2
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.64%
Revenue beat(8)4
Avg Revenue beat(8)-0.18%
Revenue beat(12)5
Avg Revenue beat(12)-3.49%
Revenue beat(16)6
Avg Revenue beat(16)-17.72%
PT rev (1m)7.61%
PT rev (3m)8.72%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)-18.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.28%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.73%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.26 | ||
| Fwd PE | 25.53 | ||
| P/S | 1.75 | ||
| P/FCF | 91.67 | ||
| P/OCF | 16.68 | ||
| P/B | 7.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.53 |
EPS(TTM)3.69
EY3.1%
EPS(NY)4.66
Fwd EY3.92%
FCF(TTM)1.3
FCFY1.09%
OCF(TTM)7.14
OCFY6%
SpS67.98
BVpS15.12
TBVpS-0.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 19.37% | ||
| ROCE | 10.54% | ||
| ROIC | 8.21% | ||
| ROICexc | 8.5% | ||
| ROICexgc | 12.14% | ||
| OM | 8.6% | ||
| PM (TTM) | 4.31% | ||
| GM | 59.98% | ||
| FCFM | 1.91% |
ROA(3y)6.05%
ROA(5y)4.5%
ROE(3y)34.97%
ROE(5y)27.47%
ROIC(3y)7.94%
ROIC(5y)5.64%
ROICexc(3y)8.52%
ROICexc(5y)6.05%
ROICexgc(3y)13.48%
ROICexgc(5y)9.52%
ROCE(3y)10.2%
ROCE(5y)7.25%
ROICexcg growth 3Y29.62%
ROICexcg growth 5Y10.06%
ROICexc growth 3Y32.6%
ROICexc growth 5Y19.05%
OM growth 3Y28.41%
OM growth 5Y12.76%
PM growth 3Y0.91%
PM growth 5Y6.2%
GM growth 3Y17.98%
GM growth 5Y13.75%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 22.27 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 136.24% | ||
| Cap/Sales | 8.59% | ||
| Interest Coverage | 2.88 | ||
| Cash Conversion | 70.44% | ||
| Profit Quality | 44.35% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.73 |
F-Score6
WACC9.45%
ROIC/WACC0.87
Cap/Depr(3y)216.26%
Cap/Depr(5y)156.91%
Cap/Sales(3y)12.11%
Cap/Sales(5y)8.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.07%
EPS 3Y-11.82%
EPS 5Y-1.25%
EPS Q2Q%-6.25%
EPS Next Y-4.56%
EPS Next 2Y10.21%
EPS Next 3Y13.01%
EPS Next 5Y16.09%
Revenue 1Y (TTM)-0.1%
Revenue growth 3Y3.87%
Revenue growth 5Y-5.45%
Sales Q2Q%0.05%
Revenue Next Year-0.58%
Revenue Next 2Y1.72%
Revenue Next 3Y2.66%
Revenue Next 5Y4.61%
EBIT growth 1Y1.32%
EBIT growth 3Y33.38%
EBIT growth 5Y6.62%
EBIT Next Year72.78%
EBIT Next 3Y29%
EBIT Next 5Y21.06%
FCF growth 1Y488.46%
FCF growth 3Y-65.23%
FCF growth 5Y-45.95%
OCF growth 1Y32.44%
OCF growth 3Y3.87%
OCF growth 5Y0.43%