* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $35 M
Debt : $351 M
EBITDA : $123 M
Net Debt (Debt - Cash): $316 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: ENERGY & TRANSPORTATION
Industry: TRANSPORTATION SERVICES
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: 39.41
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $64 M
Average Revenue: $4,077 M
Revenue Converted To Free Cash FLow(%): 2%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 38.88%
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): $4,550 M
Revenue 4 Years Ago (2020-12-31): $3,357 M
Last 5 Years Average Revenue Growth: 7%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $133 M
Share Count 5 Years Ago (2020-12-31): $116 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): $0.60
Trailing 12-Month Earnings Per Share (EPS): $0.15
Average Earnings Per Share (EPS): $0.38
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:
Average ROE: 3%
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: $15
52-Week Low: $12
Threshold Price (15% Above 52-Week Low): $14
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: $3,050 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 9 points to above RXO Inc. (RXO) stock.
Last 2 Years Avg PE (Limited to last 2 years of EPS data) 40, Fair Value PE 9, Industry Based PE is 12 and Growth based PE is 10. Based on these all values average assigned is 17.75.
Value-Trades has assined P/E value 17.75. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.375.
The fair value of RXO Inc. (RXO) stock should be (17.75 x $0.375) = $6.66
