XPO INC (XPO) Stock Fundamental Analysis
NYSE:XPO - New York Stock Exchange, Inc. - US9837931008 - Common Stock - Currency: USD
Overall XPO gets a fundamental rating of 4 out of 10. We evaluated XPO against 40 industry peers in the Ground Transportation industry. While XPO has a great profitability rating, there are quite some concerns on its financial health. XPO is quite expensive at the moment. 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.
Each year in the past 5 years XPO had a positive operating cash flow.
1.2 Ratios
XPO has a Return On Assets of 4.94%. This is in the better half of the industry: XPO outperforms 62.50% of its industry peers.
XPO has a Return On Equity of 23.72%. This is amongst the best in the industry. XPO outperforms 85.00% of its industry peers.
With a decent Return On Invested Capital value of 8.54%, XPO is doing good in the industry, outperforming 67.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for XPO is in line with the industry average of 8.58%.
The last Return On Invested Capital (8.54%) for XPO is above the 3 year average (7.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 23.72% | ||
| ROIC | 8.54% |
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
The Profit Margin of XPO (4.86%) is better than 70.00% of its industry peers.
XPO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.67%, XPO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
XPO's Operating Margin has improved in the last couple of years.
XPO has a Gross Margin of 59.63%. This is in the better half of the industry: XPO outperforms 70.00% of its industry peers.
In the last couple of years the Gross Margin of XPO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.67% | ||
| PM (TTM) | 4.86% | ||
| GM | 59.63% |
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
Compared to 5 years ago, XPO has more shares outstanding
XPO has a better debt/assets ratio than last year.
2.2 Solvency
XPO has an Altman-Z score of 2.93. 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.
The Altman-Z score of XPO (2.93) is better than 67.50% of its industry peers.
The Debt to FCF ratio of XPO is 27.62, which is on the high side as it means it would take XPO, 27.62 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 27.62, XPO perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
A Debt/Equity ratio of 2.03 is on the high side and indicates that XPO has dependencies on debt financing.
XPO has a Debt to Equity ratio of 2.03. This is amonst the worse of the industry: XPO underperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 27.62 | ||
| Altman-Z | 2.93 |
ROIC/WACC0.9
WACC9.51%
2.3 Liquidity
A Current Ratio of 1.02 indicates that XPO should not have too much problems paying its short term obligations.
XPO has a Current ratio (1.02) which is in line with 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.
XPO's Quick ratio of 1.02 is in line compared to the rest of the industry. XPO outperforms 52.50% of 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 grown by an nice 18.61% over the past year.
XPO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.25% yearly.
The Revenue has been growing slightly by 1.95% 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)18.61%
EPS 3Y-11.82%
EPS 5Y-1.25%
EPS Q2Q%-9.88%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y3.87%
Revenue growth 5Y-5.45%
Sales Q2Q%-3.17%
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 16.09% on average per year.
XPO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.61% yearly.
EPS Next Y-4.56%
EPS Next 2Y10.21%
EPS Next 3Y13.01%
EPS Next 5Y16.09%
Revenue Next Year-0.4%
Revenue Next 2Y1.85%
Revenue Next 3Y2.65%
Revenue Next 5Y4.61%
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 34.12, the valuation of XPO can be described as expensive.
XPO's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of XPO to the average of the S&P500 Index (27.19), we can say XPO is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 27.51, the valuation of XPO can be described as expensive.
XPO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, XPO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.12 | ||
| Fwd PE | 27.51 |
4.2 Price Multiples
XPO's Enterprise Value to EBITDA ratio is in line with the industry average.
XPO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 122.88 | ||
| EV/EBITDA | 15.79 |
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 13.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.21%
EPS Next 3Y13.01%
5. Dividend
5.1 Amount
No dividends for XPO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
128.29
-4.14 (-3.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners106.05%
Inst Owner Change0%
Ins Owners1.81%
Ins Owner Change0.94%
Market Cap15.11B
Analysts82.67
Price Target130.01 (1.34%)
Short Float %7.16%
Short Ratio5.63
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)24.72%
Min EPS beat(2)10.54%
Max EPS beat(2)38.89%
EPS beat(4)4
Avg EPS beat(4)17.54%
Min EPS beat(4)9.48%
Max EPS beat(4)38.89%
EPS beat(8)8
Avg EPS beat(8)20.67%
EPS beat(12)12
Avg EPS beat(12)18.74%
EPS beat(16)15
Avg EPS beat(16)18.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)-1.03%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)0.64%
Revenue beat(8)3
Avg Revenue beat(8)-0.52%
Revenue beat(12)4
Avg Revenue beat(12)-6.56%
Revenue beat(16)5
Avg Revenue beat(16)-19.94%
PT rev (1m)1.02%
PT rev (3m)-14.27%
EPS NQ rev (1m)-1.09%
EPS NQ rev (3m)-5.8%
EPS NY rev (1m)-1.59%
EPS NY rev (3m)-12.31%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-1.47%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.12 | ||
| Fwd PE | 27.51 | ||
| P/S | 1.89 | ||
| P/FCF | 122.88 | ||
| P/OCF | 18.77 | ||
| P/B | 9.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.79 |
EPS(TTM)3.76
EY2.93%
EPS(NY)4.66
Fwd EY3.64%
FCF(TTM)1.04
FCFY0.81%
OCF(TTM)6.83
OCFY5.33%
SpS67.97
BVpS13.92
TBVpS-1.71
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 23.72% | ||
| ROCE | 10.97% | ||
| ROIC | 8.54% | ||
| ROICexc | 8.83% | ||
| ROICexgc | 12.64% | ||
| OM | 8.67% | ||
| PM (TTM) | 4.86% | ||
| GM | 59.63% | ||
| FCFM | 1.54% |
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-Score7
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 27.62 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 137.5% | ||
| Cap/Sales | 8.52% | ||
| Interest Coverage | 2.89 | ||
| Cash Conversion | 67.65% | ||
| Profit Quality | 31.62% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.93 |
F-Score7
WACC9.51%
ROIC/WACC0.9
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)18.61%
EPS 3Y-11.82%
EPS 5Y-1.25%
EPS Q2Q%-9.88%
EPS Next Y-4.56%
EPS Next 2Y10.21%
EPS Next 3Y13.01%
EPS Next 5Y16.09%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y3.87%
Revenue growth 5Y-5.45%
Sales Q2Q%-3.17%
Revenue Next Year-0.4%
Revenue Next 2Y1.85%
Revenue Next 3Y2.65%
Revenue Next 5Y4.61%
EBIT growth 1Y15.47%
EBIT growth 3Y33.38%
EBIT growth 5Y6.62%
EBIT Next Year73.46%
EBIT Next 3Y29.73%
EBIT Next 5Y21.06%
FCF growth 1Y59.74%
FCF growth 3Y-65.23%
FCF growth 5Y-45.95%
OCF growth 1Y15.16%
OCF growth 3Y3.87%
OCF growth 5Y0.43%