* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $413 M
Debt : $5,176 M
EBITDA : $848 M
Net Debt (Debt - Cash): $4,763 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Transportation and warehousing
Industry: Postal service
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 34.41
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 7 overlapping fiscal years (max 20).Average Free Cash Flow: $140 M
Average Revenue: $8,111 M
Revenue Converted To Free Cash Flow (%): 1.7%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $11,709 M
Revenue 4 Years Ago (2020-12-31): $6,195 M
Last 5 Years Average Revenue Growth: 18%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $120 M
Share Count 5 Years Ago (2020-12-31): $112 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.55
Trailing 12-Month Earnings Per Share (EPS): $0.51
Average Earnings Per Share (EPS): $1.53
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 6 valid ROE years (max 20).Average ROE: 4.8%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $53
52-Week Low: $30
Threshold Price (15% Above 52-Week Low): $35
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $6,016 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 11 points to above GXO Logistics Inc (GXO) stock.
Last 4 Years Avg PE 25.59, Fair Value PE 12, Industry Based PE 15, Growth Based PE 17, RCFC Based PE 13.38, ROE Based PE 13.82, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 16.27. Value-Trades has assined P/E value 16.27. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.53.
The fair value of GXO Logistics Inc (GXO) stock should be (16.27 x $1.53) = $24.89.
