ScoreComparison
Why is XPO, Inc. ?
1
Weak Long Term Fundamental Strength with a 8.64% CAGR growth in Operating Profits over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.76 times
- The company has been able to generate a Return on Capital Employed (avg) of 14.70% signifying low profitability per unit of total capital (equity and debt)
2
Positive results in Jun 25
- OPERATING CASH FLOW(Y) Highest at USD 839 MM
- INTEREST COVERAGE RATIO(Q) Highest at 603.57
- RAW MATERIAL COST(Y) Fallen by -1.11% (YoY)
3
With ROCE of 14.00%, it has a fair valuation with a 3.49 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -9.21%, its profits have risen by 39.3% ; the PEG ratio of the company is 0.8
4
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 13.22% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.21% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to XPO, Inc. should be less than 10%
- Overall Portfolio exposure to Transport Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is XPO, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
XPO, Inc.
-9.21%
0.64
49.35%
S&P 500
13.22%
0.65
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-12.55%
EBIT Growth (5y)
8.64%
EBIT to Interest (avg)
3.50
Debt to EBITDA (avg)
2.76
Net Debt to Equity (avg)
2.02
Sales to Capital Employed (avg)
1.82
Tax Ratio
17.89%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
14.70%
ROE (avg)
32.65%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
Price to Book Value
8.51
EV to EBIT
24.89
EV to EBITDA
14.53
EV to Capital Employed
3.49
EV to Sales
2.16
PEG Ratio
0.83
Dividend Yield
NA
ROCE (Latest)
14.00%
ROE (Latest)
27.07%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 839 MM
INTEREST COVERAGE RATIO(Q)
Highest at 603.57
RAW MATERIAL COST(Y)
Fallen by -1.11% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 221.34 %
NET SALES(Q)
Highest at USD 2,080 MM
OPERATING PROFIT(Q)
Highest at USD 338 MM
OPERATING PROFIT MARGIN(Q)
Highest at 16.25 %
-3What is not working for the Company
NET PROFIT(HY)
At USD 188.5 MM has Grown at -25.02%
CASH AND EQV(HY)
Lowest at USD 437 MM
Here's what is working for XPO, Inc.
Operating Cash Flow
Highest at USD 839 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 603.57
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at USD 2,080 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 338 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 16.25 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Debt-Equity Ratio
Lowest at 221.34 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -1.11% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 131 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for XPO, Inc.
Net Profit
At USD 188.5 MM has Grown at -25.02%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Cash and Eqv
Lowest at USD 437 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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