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XPO Inc XPO

Morningstar Rating
$108.37 +2.97 (2.82%)
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Company Report

XPO Earnings: Yellow Share Gains Still Providing a Nice Boost, and Productivity Solid

XPO’s first-quarter consolidated top line rose 6%, with a big boost from second-half 2023 less-than-truckload freight diversions from bankrupt peer Yellow. Revenue was largely in line with our expected run rate, as we've been baking in continued healthy volume and pricing gains despite the soft underlying LTL demand backdrop. April year-over-year tonnage growth (around 3%) is also trending in line with our forecast. XPO's flagship LTL revenue rose a robust 9% (similar to last quarter), while European trucking segment revenue grew 1% on pricing.

Price vs Fair Value

XPO is trading within a range we consider fairly valued.
Price
$108.37
Fair Value
$86.00
Uncertainty
High
1-Star Price
$835.80
5-Star Price
$52.50
Economic Moat
Mnmdf
Capital Allocation
Bvmpbmw

Bulls Say, Bears Say

Bulls

Share gains from bankrupt LTL peer Yellow have provided a material boost to XPO's tonnage and network density.

Bears

Underlying demand across the broader trucking industry is facing near-term headwinds from sluggish industrial end markets and muted retail sector inventory restocking.

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News

Trading Information

Previous Close Price
$105.40
Day Range
$106.01109.15
52-Week Range
$46.66130.51
Bid/Ask
$107.49 / $108.99
Market Cap
$12.61 Bil
Volume/Avg
1.3 Mil / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
33.26
Price/Sales
1.60
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

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. On a pro forma basis for the RXO spinoff, We estimate LTL shipping now 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
39,000

Competitors

Valuation

Metric
XPO
ODFL
SAIA
Price/Earnings (Normalized)
33.2630.8927.52
Price/Book Value
9.208.674.97
Price/Sales
1.606.553.42
Price/Cash Flow
14.7423.4217.70
Price/Earnings
XPO
ODFL
SAIA

Financial Strength

Metric
XPO
ODFL
SAIA
Quick Ratio
0.812.151.06
Current Ratio
0.942.291.23
Interest Coverage
2.795,446.68201.59
Quick Ratio
XPO
ODFL
SAIA

Profitability

Metric
XPO
ODFL
SAIA
Return on Assets (Normalized)
5.52%23.37%14.88%
Return on Equity (Normalized)
31.66%30.38%20.04%
Return on Invested Capital (Normalized)
10.75%29.46%18.32%
Return on Assets
XPO
ODFL
SAIA
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Trucking Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ODFL
Old Dominion Freight Line Inc Ordinary SharesBlsqhxrhqyKpgqly$37.6 Bil
TFII
TFI International IncRcjtg$11.2 Bil
SAIA
Saia IncCdxhxstnjBbqfv$10.1 Bil
KNX
Knight-Swift Transportation Holdings Inc Class AMgttjpnsFkjx$7.7 Bil
SNDR
Schneider National IncWygcdqgJrc$3.9 Bil
YATRY
Yamato Holdings Co Ltd ADRGnpls$3.8 Bil
ARCB
ArcBest CorpHtpsjjcsGpmdtk$2.5 Bil
RXO
RXO IncVbmh$2.4 Bil
WERN
Werner Enterprises IncMnpblpssGng$2.4 Bil

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