XPO INC (XPO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XPO - US9837931008 - Common Stock
138.52 USD
-2.4 (-1.7%)
138.52 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to XPO. XPO was compared to 42 industry peers in the Ground Transportation industry. XPO has an excellent profitability rating, but there are some minor concerns on its financial health. XPO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
XPO had positive earnings in the past year.
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
The Return On Assets of XPO (4.05%) is better than 67.44% of its industry peers.
XPO's Return On Equity of 18.27% is amongst the best of the industry. XPO outperforms 81.40% of its industry peers.
The Return On Invested Capital of XPO (8.40%) is better than 81.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for XPO is in line with the industry average of 6.83%.
The 3 year average ROIC (7.94%) for XPO is below the current ROIC(8.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 18.27% | ||
| ROIC | 8.4% |
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
XPO has a better Profit Margin (4.12%) than 74.42% of its industry peers.
In the last couple of years the Profit Margin of XPO has grown nicely.
Looking at the Operating Margin, with a value of 8.73%, XPO is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
In the last couple of years the Operating Margin of XPO has grown nicely.
Looking at the Gross Margin, with a value of 60.26%, XPO is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
In the last couple of years the Gross Margin of XPO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.73% | ||
| PM (TTM) | 4.12% | ||
| GM | 60.26% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XPO is destroying value.
The number of shares outstanding for XPO has been increased compared to 1 year ago.
XPO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, XPO has an improved debt to assets ratio.
2.2 Solvency
XPO has an Altman-Z score of 2.95. 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 has a better Altman-Z score (2.95) than 67.44% of its industry peers.
The Debt to FCF ratio of XPO is 14.43, which is on the high side as it means it would take XPO, 14.43 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 14.43, XPO is doing good in the industry, outperforming 65.12% of the companies in the same industry.
A Debt/Equity ratio of 1.77 is on the high side and indicates that XPO has dependencies on debt financing.
XPO has a Debt to Equity ratio of 1.77. This is amonst the worse of the industry: XPO underperforms 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 14.43 | ||
| Altman-Z | 2.95 |
ROIC/WACC0.84
WACC10%
2.3 Liquidity
A Current Ratio of 1.02 indicates that XPO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.02, XPO perfoms like the industry average, outperforming 44.19% 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.
XPO's Quick ratio of 1.02 is in line compared to the rest of the industry. XPO outperforms 44.19% of its industry peers.
| 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 0.54%.
The Earnings Per Share has been decreasing by -1.25% on average over the past years.
XPO shows a decrease in Revenue. In the last year, the revenue decreased by -0.28%.
XPO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.45% yearly.
EPS 1Y (TTM)0.54%
EPS 3Y-11.82%
EPS 5Y-1.25%
EPS Q2Q%4.9%
Revenue 1Y (TTM)-0.28%
Revenue growth 3Y3.87%
Revenue growth 5Y-5.45%
Sales Q2Q%2.83%
3.2 Future
The Earnings Per Share is expected to grow by 15.97% on average over the next years. This is quite good.
Based on estimates for the next years, XPO will show a small growth in Revenue. The Revenue will grow by 4.65% on average per year.
EPS Next Y-3.02%
EPS Next 2Y9.26%
EPS Next 3Y14.27%
EPS Next 5Y15.97%
Revenue Next Year0.55%
Revenue Next 2Y2.14%
Revenue Next 3Y3.35%
Revenue Next 5Y4.65%
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
Based on the Price/Earnings ratio of 37.04, the valuation of XPO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as XPO.
Compared to an average S&P500 Price/Earnings ratio of 26.39, XPO is valued a bit more expensive.
A Price/Forward Earnings ratio of 30.22 indicates a quite expensive valuation of XPO.
The rest of the industry has a similar Price/Forward Earnings ratio as XPO.
When comparing the Price/Forward Earnings ratio of XPO to the average of the S&P500 Index (23.84), we can say XPO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.04 | ||
| Fwd PE | 30.22 |
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.
65.12% of the companies in the same industry are more expensive than XPO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.08 | ||
| EV/EBITDA | 15.84 |
4.3 Compensation for Growth
XPO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as XPO's earnings are expected to grow with 14.27% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.26%
EPS Next 3Y14.27%
5. Dividend
5.1 Amount
No dividends for XPO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
138.52
-2.4 (-1.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners108.77%
Inst Owner Change1.63%
Ins Owners1.82%
Ins Owner Change-0.01%
Market Cap16.26B
Revenue(TTM)8.07B
Net Income(TTM)332.00M
Analysts82.67
Price Target153.45 (10.78%)
Short Float %9.23%
Short Ratio7.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)4.53%
Min EPS beat(2)4.12%
Max EPS beat(2)4.94%
EPS beat(4)4
Avg EPS beat(4)14.62%
Min EPS beat(4)4.12%
Max EPS beat(4)38.89%
EPS beat(8)8
Avg EPS beat(8)15.27%
EPS beat(12)12
Avg EPS beat(12)17.44%
EPS beat(16)16
Avg EPS beat(16)18.84%
Revenue beat(2)2
Avg Revenue beat(2)0.62%
Min Revenue beat(2)0.43%
Max Revenue beat(2)0.81%
Revenue beat(4)2
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.81%
Revenue beat(8)4
Avg Revenue beat(8)-0.3%
Revenue beat(12)6
Avg Revenue beat(12)-0.28%
Revenue beat(16)6
Avg Revenue beat(16)-17.95%
PT rev (1m)6.48%
PT rev (3m)9.32%
EPS NQ rev (1m)-2.9%
EPS NQ rev (3m)-5.72%
EPS NY rev (1m)0%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.04 | ||
| Fwd PE | 30.22 | ||
| P/S | 2.02 | ||
| P/FCF | 70.08 | ||
| P/OCF | 17.13 | ||
| P/B | 8.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.84 |
EPS(TTM)3.74
EY2.7%
EPS(NY)4.58
Fwd EY3.31%
FCF(TTM)1.98
FCFY1.43%
OCF(TTM)8.08
OCFY5.84%
SpS68.73
BVpS15.48
TBVpS-0.46
PEG (NY)N/A
PEG (5Y)N/A
Graham Number36.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 18.27% | ||
| ROCE | 10.79% | ||
| ROIC | 8.4% | ||
| ROICexc | 8.86% | ||
| ROICexgc | 12.7% | ||
| OM | 8.73% | ||
| PM (TTM) | 4.12% | ||
| GM | 60.26% | ||
| FCFM | 2.88% |
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%
ROICexgc growth 3Y29.62%
ROICexgc 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-Score5
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 14.43 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 139.77% | ||
| Cap/Sales | 8.89% | ||
| Interest Coverage | 3.02 | ||
| Cash Conversion | 77.98% | ||
| Profit Quality | 69.88% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.95 |
F-Score5
WACC10%
ROIC/WACC0.84
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)0.54%
EPS 3Y-11.82%
EPS 5Y-1.25%
EPS Q2Q%4.9%
EPS Next Y-3.02%
EPS Next 2Y9.26%
EPS Next 3Y14.27%
EPS Next 5Y15.97%
Revenue 1Y (TTM)-0.28%
Revenue growth 3Y3.87%
Revenue growth 5Y-5.45%
Sales Q2Q%2.83%
Revenue Next Year0.55%
Revenue Next 2Y2.14%
Revenue Next 3Y3.35%
Revenue Next 5Y4.65%
EBIT growth 1Y-0.56%
EBIT growth 3Y33.38%
EBIT growth 5Y6.62%
EBIT Next Year72.92%
EBIT Next 3Y29.36%
EBIT Next 5Y20.88%
FCF growth 1Y514.29%
FCF growth 3Y-65.23%
FCF growth 5Y-45.95%
OCF growth 1Y56.86%
OCF growth 3Y3.87%
OCF growth 5Y0.43%
XPO INC / XPO FAQ
Can you provide the ChartMill fundamental rating for XPO INC?
ChartMill assigns a fundamental rating of 5 / 10 to XPO.
What is the valuation status of XPO INC (XPO) stock?
ChartMill assigns a valuation rating of 3 / 10 to XPO INC (XPO). This can be considered as Overvalued.
What is the profitability of XPO stock?
XPO INC (XPO) has a profitability rating of 8 / 10.
What is the valuation of XPO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for XPO INC (XPO) is 37.04 and the Price/Book (PB) ratio is 8.95.
Can you provide the financial health for XPO stock?
The financial health rating of XPO INC (XPO) is 4 / 10.