* Note: Prices are in Million (M) USD.
Description:
RXO Inc. is a leading entity in the transportation and logistics sector, specializing in advanced freight solutions across North America. Leveraging innovative technology and data analytics, RXO significantly improves supply chain efficiency and cost-effectiveness for a diverse clientele. The company's unwavering focus on sustainability and continuous innovation enhances its operational prowess and competitive stature in a dynamic logistics landscape. With a robust network and strategic alliances, RXO is strategically positioned to meet the evolving needs of the industry, representing a promising opportunity for institutional investors looking for growth in logistics.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $21 M
Debt : $517 M
EBITDA : $-21 M
Net Debt (Debt - Cash): $496 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Trucking
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points 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: $53 M
Average Revenue: $4,315 M
Revenue Converted To Free Cash Flow (%): 1.2%
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 (2025-12-31): $5,742 M
Revenue 5 Years Ago (2020-12-31): $3,357 M
Total Growth over 5 Years: 71.0%
5-Year Revenue CAGR (Historical): 11.3%
Forward 5-Year CAGR (Tapered): 9.1%
Since historical Revenue CAGR is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-12-31): $168 M
Share Count 5 Years Ago (2021-12-31): $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): $0.00
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
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: 1.7%
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: $20.57
52-Week Low: $10.43
Threshold Price (15% Above 52-Week Low): $11.99
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: $3,392 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.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share, latest positive annual) (2023-12-31): $0.15
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 11 points to above RXO Inc. (RXO) stock.
Last 1 Years Avg PE 23.5, Fair Value PE 12, Industry Based PE 15, Growth Based PE 15, RCFC Based PE 1.24, ROE Based PE 1.65, Risk-Free Anchored PE (25% MoS) 16.78. Based on these 7 values, average assigned is 12.17. The fair value of RXO Inc. (RXO) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
