XPO INC (XPO) Stock Fundamental Analysis
USA - NYSE:XPO - US9837931008 - Common Stock
126.05 USD
-3.1 (-2.4%)
126.05 USD
0 (0%)
Overall XPO gets a fundamental rating of 5 out of 10. We evaluated XPO against 42 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
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.
Each year in the past 5 years XPO had a positive operating cash flow.
1.2 Ratios
XPO has a Return On Assets of 4.24%. This is in the better half of the industry: XPO outperforms 64.29% of its industry peers.
XPO's Return On Equity of 19.37% is amongst the best of the industry. XPO outperforms 80.95% of its industry peers.
With a decent Return On Invested Capital value of 8.21%, XPO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
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 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.
XPO's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.60%, XPO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of XPO has grown nicely.
XPO has a better Gross Margin (59.98%) than 69.05% of its industry peers.
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
The number of shares outstanding for XPO has been increased compared to 5 years ago.
The debt/assets ratio for XPO has been reduced compared to a year ago.
2.2 Solvency
XPO has an Altman-Z score of 2.83. 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 Altman-Z score of 2.83. This is in the better half of the industry: XPO outperforms 71.43% 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.
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 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 22.27 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.87
WACC9.41%
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 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.
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
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.
The Revenue has been decreasing by -5.45% on average over the past years.
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 16.04% on average per year.
The Revenue is expected to grow by 4.48% on average over the next years.
EPS Next Y-3.33%
EPS Next 2Y10.45%
EPS Next 3Y13.69%
EPS Next 5Y16.04%
Revenue Next Year-0.06%
Revenue Next 2Y1.97%
Revenue Next 3Y3.05%
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.
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
With a Price/Earnings ratio of 34.16, XPO can be considered very expensive at the moment.
XPO's Price/Earnings ratio is in line with the industry average.
XPO is valuated rather expensively when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 26.91, the valuation of XPO can be described as expensive.
XPO's Price/Forward Earnings ratio is in line with the industry average.
XPO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.16 | ||
| Fwd PE | 26.91 |
4.2 Price Multiples
XPO's Enterprise Value to EBITDA ratio is in line with the industry average.
64.29% 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 | 97.02 | ||
| EV/EBITDA | 15.4 |
4.3 Compensation for Growth
XPO has an outstanding profitability rating, which may justify a higher PE ratio.
XPO's earnings are expected to grow with 13.69% in the coming years. This may justify a more expensive valuation.
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 |
126.05
-3.1 (-2.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners105.91%
Inst Owner Change-0.18%
Ins Owners1.81%
Ins Owner Change0.03%
Market Cap14.84B
Analysts82
Price Target140.36 (11.35%)
Short Float %8.66%
Short Ratio8.69
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)0.32%
PT rev (3m)7.96%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-4.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.16 | ||
| Fwd PE | 26.91 | ||
| P/S | 1.85 | ||
| P/FCF | 97.02 | ||
| P/OCF | 17.65 | ||
| P/B | 8.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.4 |
EPS(TTM)3.69
EY2.93%
EPS(NY)4.68
Fwd EY3.72%
FCF(TTM)1.3
FCFY1.03%
OCF(TTM)7.14
OCFY5.67%
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 | 2.83 |
F-Score6
WACC9.41%
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-0.06%
Revenue Next 2Y1.97%
Revenue Next 3Y3.05%
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%