GXO Logistics, Inc.
GXO Logistics, Inc. Fundamental Analysis
GXO Logistics, Inc. (GXO) shows weak financial fundamentals with a PE ratio of 39.91, profit margin of 0.98%, and ROE of 4.46%. The company generates $13.5B in annual revenue with strong year-over-year growth of 12.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GXO's fundamental strength across five key dimensions:
Efficiency Score
WeakGXO struggles to generate sufficient returns from assets.
Valuation Score
ModerateGXO shows balanced valuation metrics.
Growth Score
ModerateGXO shows steady but slowing expansion.
Financial Health Score
WeakGXO carries high financial risk with limited liquidity.
Profitability Score
WeakGXO struggles to sustain strong margins.
Key Financial Metrics
Is GXO Expensive or Cheap?
P/E Ratio
GXO trades at 39.91 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GXO's PEG of 0.47 indicates potential undervaluation.
Price to Book
The market values GXO Logistics, Inc. at 1.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.14 times EBITDA. This is generally considered low.
How Well Does GXO Make Money?
Net Profit Margin
For every $100 in sales, GXO Logistics, Inc. keeps $0.98 as profit after all expenses.
Operating Margin
Core operations generate 3.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.46 in profit for every $100 of shareholder equity.
ROA
GXO Logistics, Inc. generates $1.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GXO Logistics, Inc. generates limited operating cash flow of $406.23M, signaling weaker underlying cash strength.
Free Cash Flow
GXO Logistics, Inc. produces free cash flow of $428.96M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.73 in free cash annually.
FCF Yield
GXO converts 8.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.008
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How GXO Stacks Against Its Sector Peers
| Metric | GXO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.91 | 25.86 | Worse (Expensive) |
| ROE | 4.46% | 1270.00% | Weak |
| Net Margin | 0.98% | -33745.00% (disorted) | Weak |
| Debt/Equity | 2.01 | 0.74 | Weak (High Leverage) |
| Current Ratio | 0.85 | 10.46 | Weak Liquidity |
| ROA | 1.08% | -1496704.00% (disorted) | Weak |
GXO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GXO Logistics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
110.74%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
202.27%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-99.87%
Industry Style: Cyclical, Value, Infrastructure
Declining