XPO INC (XPO)
US9837931008 - Common Stock
We assign a fundamental rating of 3 out of 10 to XPO. XPO was compared to 36 industry peers in the Ground Transportation industry. XPO has a medium profitability rating, but doesn't score so well on its financial health evaluation. XPO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year XPO was profitable.
In the past year XPO had a positive cash flow from operations.
In the past 5 years XPO has always been profitable.
XPO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.52%, XPO perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.93%, XPO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
XPO has a better Return On Invested Capital (6.68%) than 69.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for XPO is below the industry average of 7.87%.
The last Return On Invested Capital (6.68%) for XPO is above the 3 year average (5.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 14.93% | ||
| ROIC | 6.68% |
ROA(3y)5.67%
ROA(5y)4.03%
ROE(3y)36.75%
ROE(5y)25.4%
ROIC(3y)5.87%
ROIC(5y)4.33%
1.3 Margins
XPO has a worse Profit Margin (2.44%) than 63.89% of its industry peers.
In the last couple of years the Profit Margin of XPO has grown nicely.
XPO has a Operating Margin (7.01%) which is in line with its industry peers.
In the last couple of years the Operating Margin of XPO has grown nicely.
With a decent Gross Margin value of 56.31%, XPO is doing good in the industry, outperforming 63.89% of the companies in the same industry.
XPO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.01% | ||
| PM (TTM) | 2.44% | ||
| GM | 56.31% |
OM growth 3Y65.16%
OM growth 5Y10.82%
PM growth 3Y23.98%
PM growth 5Y1.58%
GM growth 3Y14.91%
GM growth 5Y3.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XPO is destroying value.
XPO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for XPO remains at a similar level compared to 5 years ago.
Compared to 1 year ago, XPO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.66 indicates that XPO is not a great score, but indicates only limited risk for bankruptcy at the moment.
XPO has a Altman-Z score of 2.66. This is in the better half of the industry: XPO outperforms 61.11% of its industry peers.
A Debt/Equity ratio of 2.63 is on the high side and indicates that XPO has dependencies on debt financing.
XPO has a Debt to Equity ratio of 2.63. This is amonst the worse of the industry: XPO underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.66 |
ROIC/WACC0.77
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.00 indicates that XPO should not have too much problems paying its short term obligations.
XPO's Current ratio of 1.00 is on the low side compared to the rest of the industry. XPO is outperformed by 61.11% of its industry peers.
A Quick Ratio of 1.00 indicates that XPO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, XPO is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
XPO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.81%.
The Earnings Per Share has been decreasing by -1.81% on average over the past years.
The Revenue has been growing slightly by 0.34% in the past year.
XPO shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -14.83% yearly.
EPS 1Y (TTM)-46.81%
EPS 3Y16.01%
EPS 5Y-1.81%
EPS growth Q2Q-21.43%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y7.88%
Revenue growth 5Y-14.83%
Revenue growth Q2Q5.95%
3.2 Future
The Earnings Per Share is expected to grow by 20.35% on average over the next years. This is a very strong growth
Based on estimates for the next years, XPO will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y20.12%
EPS Next 2Y28.13%
EPS Next 3Y25.33%
EPS Next 5Y20.35%
Revenue Next Year7.07%
Revenue Next 2Y7.15%
Revenue Next 3Y6.38%
Revenue Next 5Y5.77%
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.
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
XPO is valuated quite expensively with a Price/Earnings ratio of 38.58.
Based on the Price/Earnings ratio, XPO is valued a bit more expensive than the industry average as 63.89% of the companies are valued more cheaply.
XPO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.20.
The Price/Forward Earnings ratio is 32.11, which means the current valuation is very expensive for XPO.
Based on the Price/Forward Earnings ratio, XPO is valued a bit more expensive than 66.67% of the companies in the same industry.
XPO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.58 | ||
| Fwd PE | 32.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XPO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates XPO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of XPO may justify a higher PE ratio.
XPO's earnings are expected to grow with 25.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.92
PEG (5Y)N/A
EPS Next 2Y28.13%
EPS Next 3Y25.33%
5. Dividend
5.1 Amount
XPO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
XPO INC
NYSE:XPO (4/24/2024, 10:57:09 AM)
112.64
-8.2 (-6.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.58 | ||
| Fwd PE | 32.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 14.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.01% | ||
| PM (TTM) | 2.44% | ||
| GM | 56.31% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-46.81%
EPS 3Y16.01%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.34%
Revenue growth 3Y7.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y