GXO Logistics Faces Valuation Downgrade Amid Declining Financial Performance and Increased Costs

GXO Logistics, Inc., a small-cap player in the transport services industry, has recently undergone an adjustment in evaluation. The revision in its score reflects a shift in the valuation grade, which has transitioned from fair to a classification indicating a higher expense level.
Key financial metrics for GXO Logistics reveal a P/E ratio of 24, alongside a price-to-book value of 1.68. The company's EV to EBIT stands at 20.50, while the EV to EBITDA is recorded at 9.46. Additionally, the EV to sales ratio is 0.62, and the return on capital employed (ROCE) is noted at 6.58%. The return on equity (ROE) is reported at 7.12%.

The recent evaluation adjustment comes in light of negative financial performance reported for the quarter ending June 2025, where net profit showed a decline of 47.23%. Furthermore, the operating cash flow reached its lowest point at USD 416 million, and interest expenses increased significantly. Over the past year, the stock has generated negative returns and has underperformed compared to the S&P 500 across multiple time frames.

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