RXO, Inc. Fundamental Analysis
RXO, Inc. (RXO) shows moderate financial fundamentals with a PE ratio of -47.25, profit margin of -1.83%, and ROE of -6.75%. The company generates $5.6B in annual revenue with strong year-over-year growth of 26.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RXO's fundamental strength across five key dimensions:
Efficiency Score
WeakRXO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRXO trades at attractive valuation levels.
Growth Score
ExcellentRXO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRXO maintains a strong and stable balance sheet.
Profitability Score
WeakRXO struggles to sustain strong margins.
Key Financial Metrics
Is RXO Expensive or Cheap?
P/E Ratio
RXO trades at -47.25 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RXO's PEG of -1.77 indicates potential undervaluation.
Price to Book
The market values RXO, Inc. at 3.29 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 462.31 times EBITDA. This signals the market has high growth expectations.
How Well Does RXO Make Money?
Net Profit Margin
For every $100 in sales, RXO, Inc. keeps $-1.83 as profit after all expenses.
Operating Margin
Core operations generate -0.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-6.75 in profit for every $100 of shareholder equity.
ROA
RXO, Inc. generates $-3.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RXO, Inc. generates limited operating cash flow of $44.86M, signaling weaker underlying cash strength.
Free Cash Flow
RXO, Inc. generates weak or negative free cash flow of $-14.63M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.09 in free cash annually.
FCF Yield
RXO converts -0.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-47.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.07
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How RXO Stacks Against Its Sector Peers
| Metric | RXO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -47.25 | 25.95 | Better (Cheaper) |
| ROE | -6.75% | 1244.00% | Weak |
| Net Margin | -1.83% | -35124.00% (disorted) | Weak |
| Debt/Equity | 0.46 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 1.27 | 10.01 | Neutral |
| ROA | -3.21% | -1492364.00% (disorted) | Weak |
RXO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RXO, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.19%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-260.69%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
40.96%
Industry Style: Cyclical, Value, Infrastructure
High Growth