XPO INC (XPO) Stock Fundamental Analysis
USA - NYSE:XPO - US9837931008 - Common Stock
125.77 USD
+0.32 (+0.26%)
127.5 USD
+1.73 (+1.38%)
Taking everything into account, XPO scores 5 out of 10 in our fundamental rating. 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 is valued expensive and it does not seem to be growing.
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.
XPO had positive earnings in each of the past 5 years.
Each year in the past 5 years XPO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of XPO (4.24%) is better than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 19.37%, XPO belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.21%, XPO is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for XPO is in line with the industry average of 7.76%.
The 3 year average ROIC (7.94%) for XPO is below the current ROIC(8.21%), indicating increased profibility in the last year.
| 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
XPO has a better Profit Margin (4.31%) than 69.05% of its industry peers.
In the last couple of years the Profit Margin of XPO has grown nicely.
XPO's Operating Margin of 8.60% is fine compared to the rest of the industry. XPO outperforms 71.43% of its industry peers.
In the last couple of years the Operating Margin of XPO has grown nicely.
Looking at the Gross Margin, with a value of 59.98%, XPO is in the better half of the industry, outperforming 69.05% 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 | 8.6% | ||
| 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
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.
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
An Altman-Z score of 2.79 indicates that XPO is not a great score, but indicates only limited risk for bankruptcy at the moment.
XPO has a better Altman-Z score (2.79) than 69.05% 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 better Debt to FCF ratio (22.27) than 64.29% of its industry peers.
XPO has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.88, XPO is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 22.27 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.89
WACC9.24%
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.
XPO has a Current ratio of 1.02. This is comparable to the rest of the industry: XPO outperforms 47.62% of its industry peers.
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 47.62% 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%.
The Earnings Per Share has been decreasing by -1.25% on average over the past years.
The Revenue has decreased by -0.10% in the past year.
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
The Earnings Per Share is expected to grow by 16.08% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.49% on average over the next years.
EPS Next Y-3.31%
EPS Next 2Y10.35%
EPS Next 3Y13.69%
EPS Next 5Y16.08%
Revenue Next Year-0.07%
Revenue Next 2Y1.88%
Revenue Next 3Y3.01%
Revenue Next 5Y4.49%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 34.08 indicates a quite expensive valuation of XPO.
XPO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of XPO to the average of the S&P500 Index (26.91), we can say XPO is valued slightly more expensively.
XPO is valuated quite expensively with a Price/Forward Earnings ratio of 26.89.
XPO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of XPO to the average of the S&P500 Index (22.92), we can say XPO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.08 | ||
| Fwd PE | 26.89 |
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.
XPO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. XPO is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 96.8 | ||
| EV/EBITDA | 15.04 |
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 13.69% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.35%
EPS Next 3Y13.69%
5. Dividend
5.1 Amount
XPO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
125.77
+0.32 (+0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners106.87%
Inst Owner Change-0.02%
Ins Owners1.81%
Ins Owner Change0.03%
Market Cap14.81B
Revenue(TTM)8.01B
Net Income(TTM)345.00M
Analysts81.38
Price Target140.45 (11.67%)
Short Float %9.42%
Short Ratio9.24
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)0.06%
PT rev (3m)1.46%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-0.66%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.08 | ||
| Fwd PE | 26.89 | ||
| P/S | 1.85 | ||
| P/FCF | 96.8 | ||
| P/OCF | 17.61 | ||
| P/B | 8.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.04 |
EPS(TTM)3.69
EY2.93%
EPS(NY)4.68
Fwd EY3.72%
FCF(TTM)1.3
FCFY1.03%
OCF(TTM)7.14
OCFY5.68%
SpS68.01
BVpS15.12
TBVpS-0.95
PEG (NY)N/A
PEG (5Y)N/A
Graham Number35.44
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%
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-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 | 2.79 |
F-Score6
WACC9.24%
ROIC/WACC0.89
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-3.31%
EPS Next 2Y10.35%
EPS Next 3Y13.69%
EPS Next 5Y16.08%
Revenue 1Y (TTM)-0.1%
Revenue growth 3Y3.87%
Revenue growth 5Y-5.45%
Sales Q2Q%0.05%
Revenue Next Year-0.07%
Revenue Next 2Y1.88%
Revenue Next 3Y3.01%
Revenue Next 5Y4.49%
EBIT growth 1Y1.32%
EBIT growth 3Y33.38%
EBIT growth 5Y6.62%
EBIT Next Year73.05%
EBIT Next 3Y29.52%
EBIT Next 5Y20.78%
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%
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 34.08 and the Price/Book (PB) ratio is 8.32.
Can you provide the financial health for XPO stock?
The financial health rating of XPO INC (XPO) is 4 / 10.