RXO, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

HashiCorp, Inc.

Certara, Inc.

ACI Worldwide, Inc.

Sprout Social, Inc.

RXO, Inc.

Envestnet, Inc.

Alteryx, Inc.

RingCentral, Inc.

Aurora Innovation, Inc.

Asana, Inc.

N-able, Inc.

Why is RXO, Inc. ?

High Management Efficiency with a high ROCE of 4,931.24%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.22 times

Positive results in Jun 25

NET SALES(HY) At USD 2,852 MM has Grown at 54.75%
PRE-TAX PROFIT(Q) At USD 0 MM has Grown at 100%
NET PROFIT(Q) At USD 1 MM has Grown at 101.93%

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -51.42%, its profits have fallen by -2071.4%

Below par performance in long term as well as near term

Along with generating -51.42% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to RXO, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is RXO, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

RXO, Inc.

-51.42%

-0.45

67.81%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.16%

EBIT Growth (5y)

-54.91%

EBIT to Interest (avg)

53.34

Debt to EBITDA (avg)

2.22

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

3.24

Tax Ratio

6.52%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

4,931.24%

ROE (avg)

3,851.80%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.66

EV to EBIT

154.78

EV to EBITDA

25.17

EV to Capital Employed

1.51

EV to Sales

0.61

PEG Ratio

Dividend Yield

ROCE (Latest)

0.97%

ROE (Latest)

-13.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

NET SALES(HY)

At USD 2,852 MM has Grown at 54.75%

PRE-TAX PROFIT(Q)

At USD 0 MM has Grown at 100%

NET PROFIT(Q)

At USD 1 MM has Grown at 101.93%

DEBTORS TURNOVER RATIO(HY)

Highest at 6.21 times

EPS(Q)

Highest at USD -0.05

-10What is not working for the Company

NET PROFIT(HY)

At USD -10 MM has Grown at -900%

OPERATING CASH FLOW(Y)

Lowest at USD 7 MM

ROCE(HY)

Lowest at -27.96%

RAW MATERIAL COST(Y)

Grown by 17.35% (YoY

Here's what is working for RXO, Inc.

Pre-Tax Profit

At USD 0 MM has Grown at 100%

over average net sales of the previous four periods of USD -57 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 1 MM has Grown at 101.93%

over average net sales of the previous four periods of USD -51.75 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

At USD 2,852 MM has Grown at 54.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

EPS

Highest at USD -0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Highest at 6.21 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for RXO, Inc.

Operating Cash Flow

Lowest at USD 7 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Raw Material Cost

Grown by 17.35% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales