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XPO Inc XPO

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Stock XNYS Rating as of
$179.73 +3.75 (2.13%)
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As of Delayed Price Closed

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Freight Density Advantage Gives XPO a Narrow Moat

Matthew Young

XPO got its start in 2011, when entrepreneur Brad Jacobs led an equity investment in expedited freight brokerage firm Express-1 Expedited Solutions. Jacobs launched an acquisition strategy targeting the asset-light US truck brokerage industry. By mid-2013, XPO's deal focus evolved into heavy-goods last-mile delivery, intermodal, and global contract logistics. In 2015, the firm jumped into the asset-based trucking landscape with the acquisition of less-than-truckload carrier Con-way.

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Price vs Fair Value

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XPO is trading at a LOCK|>$&@t< premium.
Price
$175.98
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Yellow's bankruptcy tightened up the LTL industry supply/demand equation, strengthening XPO's pricing power. XPO's investments targeting higher network service quality are contributing to pricing gains as well.

Bears

US tariffs or an oil price shock could prevent a cyclical uptick in retail sector restocking or slow industrial sector improvement this year.

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Trading Information

Previous Close Price
$175.98
Day Range
$173.47–180.07
52-Week Range
$121.48–232.05
Bid/Ask
$177.00 / $182.00
Shares Outstanding
117.09M
Market Cap
$21.04B
Volume/Avg
1M / 990,401

Key Statistics

Price/Earnings (Normalized)
38.57
Price/Sales
2.49
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Dividend Payment Schedule
—
Total Yield
1.02%

Company Profile

Following the spinoff of its contract logistics division (GXO) in 2021 and freight brokerage operations (RXO) in 2022, XPO is moving closer to becoming a pure-play asset-based less-than-truckload carrier. We estimate LTL shipping makes up 60% of total revenue, with XPO's European truckload and LTL operations making up 40%. However, XPO's LTL segment EBITDA mix is much higher than 60%. We believe XPO intends to divest its European trucking division once it finds the right buyer.
Sector
Industrials
Industry
Trucking
Stock Style Box
Mid Core
Total Number of Employees
38,000
Website
https://www.xpo.com

Competitors

Valuation

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Metric
XPO
SAIA
ODFL
Price/Earnings (Normalized)
 38.5734.6034.32
Price/Book Value
 10.733.368.13
Price/Sales
 2.492.726.67
Price/Cash Flow
 18.7115.1225.59
Price/Earnings
XPO
SAIA
ODFL

Financial Strength

Metric
XPO
SAIA
ODFL
Quick Ratio
 0.871.401.71
Current Ratio
 1.011.581.89
Interest Coverage
 3.5831.432,179.09
Quick Ratio
XPO
SAIA
ODFL

Profitability

Metric
XPO
SAIA
ODFL
Return on Assets (Normalized)
 6.76%7.84%19.22%
Return on Equity (Normalized)
 29.93%10.78%24.69%
Return on Invested Capital (Normalized)
 11.99%9.87%24.19%
Return on Assets
XPO
SAIA
ODFL

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LOCK|DP#n?pNvLOCK|KK@N$37B
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LOCK|^<B^H%^LOCK|>yP$11B
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—LOCK|@&@w$10B
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SAIA
LOCK|!$@cQkqLOCK|Yft$9B
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LOCK|DhT$grLOCK|@y$6B
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—LOCK|VLd$4B
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—LOCK|!P$4B
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LOCK|%fk^>cLOCK|&L$3B
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LOCK|BhF&>%YLOCK|>&$2B

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