XPO INC (XPO) Stock Fundamental Analysis
NYSE:XPO - US9837931008 - Common Stock
130.91 USD
+0.08 (+0.06%)
130.91 USD
0 (0%)
XPO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Ground Transportation industry. While XPO has a great profitability rating, 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.
Each year in the past 5 years XPO has been profitable.
XPO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.24%, XPO is doing good in the industry, outperforming 63.41% of the companies in the same industry.
With an excellent Return On Equity value of 19.37%, XPO belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
XPO's Return On Invested Capital of 8.21% is fine compared to the rest of the industry. XPO outperforms 70.73% 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 7.92%.
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
Looking at the Profit Margin, with a value of 4.31%, XPO is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
XPO's Profit Margin has improved in the last couple of years.
XPO's Operating Margin of 8.60% is fine compared to the rest of the industry. XPO outperforms 70.73% of its industry peers.
XPO's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 59.98%, XPO is doing good in the industry, outperforming 68.29% 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.
Compared to 1 year ago, XPO has more shares outstanding
XPO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for XPO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.85 indicates that XPO is not a great score, but indicates only limited risk for bankruptcy at the moment.
XPO's Altman-Z score of 2.85 is fine compared to the rest of the industry. XPO outperforms 70.73% of its industry peers.
The Debt to FCF ratio of XPO is 22.27, which is on the high side as it means it would take XPO, 22.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 22.27, XPO is in the better half of the industry, outperforming 63.41% of the companies in the same 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 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 22.27 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.87
WACC9.39%
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 (1.02) which is comparable to the rest of the industry.
A Quick Ratio of 1.02 indicates that XPO should not have too much problems paying its short term obligations.
XPO has a Quick ratio (1.02) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.07% over the past year.
Measured over the past years, XPO shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.25% on average per year.
Looking at the last year, XPO shows a decrease in Revenue. The Revenue has decreased by -0.10% in the last 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 16.04% 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 4.48% on average per year.
EPS Next Y-3.33%
EPS Next 2Y10.45%
EPS Next 3Y13.69%
EPS Next 5Y16.04%
Revenue Next Year-0.05%
Revenue Next 2Y2%
Revenue Next 3Y3.04%
Revenue Next 5Y4.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 35.48 indicates a quite expensive valuation of XPO.
The rest of the industry has a similar Price/Earnings ratio as XPO.
XPO is valuated rather expensively when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.95, which means the current valuation is very expensive for XPO.
XPO's Price/Forward Earnings is on the same level as the industry average.
XPO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.48 | ||
| Fwd PE | 27.95 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as XPO.
Based on the Price/Free Cash Flow ratio, XPO is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.76 | ||
| EV/EBITDA | 15.57 |
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 2Y10.45%
EPS Next 3Y13.69%
5. Dividend
5.1 Amount
XPO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
130.91
+0.08 (+0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners105.91%
Inst Owner Change-0.17%
Ins Owners1.81%
Ins Owner Change0.12%
Market Cap15.42B
Analysts82
Price Target139.91 (6.87%)
Short Float %8.33%
Short Ratio7.68
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)1.07%
PT rev (3m)8.72%
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)-18.41%
EPS NY rev (1m)1.29%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)-3.36%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.48 | ||
| Fwd PE | 27.95 | ||
| P/S | 1.92 | ||
| P/FCF | 100.76 | ||
| P/OCF | 18.33 | ||
| P/B | 8.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.57 |
EPS(TTM)3.69
EY2.82%
EPS(NY)4.68
Fwd EY3.58%
FCF(TTM)1.3
FCFY0.99%
OCF(TTM)7.14
OCFY5.46%
SpS68.01
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 | 2.85 |
F-Score6
WACC9.39%
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-3.33%
EPS Next 2Y10.45%
EPS Next 3Y13.69%
EPS Next 5Y16.04%
Revenue 1Y (TTM)-0.1%
Revenue growth 3Y3.87%
Revenue growth 5Y-5.45%
Sales Q2Q%0.05%
Revenue Next Year-0.05%
Revenue Next 2Y2%
Revenue Next 3Y3.04%
Revenue Next 5Y4.48%
EBIT growth 1Y1.32%
EBIT growth 3Y33.38%
EBIT growth 5Y6.62%
EBIT Next Year72.78%
EBIT Next 3Y29%
EBIT Next 5Y20.76%
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%