RXO, Inc.

NYSE:RXO Stock Report

Market Cap: US$4.8b

RXO Valuation

Is RXO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RXO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RXO ($30.15) is trading below our estimate of fair value ($39.12)

Significantly Below Fair Value: RXO is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RXO?

Key metric: As RXO is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RXO. This is calculated by dividing RXO's market cap by their current revenue.
What is RXO's PS Ratio?
PS Ratio1.3x
SalesUS$3.86b
Market CapUS$4.85b

Price to Sales Ratio vs Peers

How does RXO's PS Ratio compare to its peers?

The above table shows the PS ratio for RXO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.9x
LSTR Landstar System
1.4x7.3%US$6.6b
SNDR Schneider National
1.1x5.2%US$5.9b
R Ryder System
0.6x7.8%US$7.1b
ARCB ArcBest
0.6x4.5%US$2.7b
RXO RXO
1.3x22.4%US$4.8b

Price-To-Sales vs Peers: RXO is expensive based on its Price-To-Sales Ratio (1.3x) compared to the peer average (0.9x).

Price to Sales Ratio vs Industry

How does RXO's PS Ratio compare vs other companies in the US Transportation Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
CAR Avis Budget Group
0.3x1.6%US$3.83b
HTZ Hertz Global Holdings
0.2x1.5%US$1.51b
DSKE Daseke
0.2xn/aUS$391.76m
USX U.S. Xpress Enterprises
0.2x3.1%US$322.82m
RXO 1.3xIndustry Avg. 1.7xNo. of Companies11PS01.63.24.86.48+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RXO is good value based on its Price-To-Sales Ratio (1.3x) compared to the US Transportation industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is RXO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RXO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio1.4x

Price-To-Sales vs Fair Ratio: RXO is good value based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (1.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RXO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$30.15
US$27.38
-9.2%
18.8%US$33.00US$12.00n/a16
Nov ’25US$27.93
US$27.93
-0.005%
15.6%US$33.00US$16.00n/a14
Oct ’25US$27.09
US$27.23
+0.5%
16.7%US$32.00US$16.00n/a13
Sep ’25US$28.46
US$27.46
-3.5%
14.0%US$32.00US$20.00n/a13
Aug ’25US$31.20
US$23.92
-23.3%
20.5%US$32.00US$14.00n/a13
Jul ’25US$27.01
US$21.15
-21.7%
20.2%US$30.00US$14.00n/a13
Jun ’25US$20.41
US$19.93
-2.4%
16.4%US$25.00US$13.00n/a14
May ’25US$19.00
US$20.07
+5.6%
14.5%US$25.00US$15.00n/a14
Apr ’25US$21.62
US$20.12
-7.0%
14.3%US$25.00US$16.00n/a13
Mar ’25US$21.10
US$20.25
-4.0%
14.8%US$25.00US$15.00n/a14
Feb ’25US$20.68
US$20.70
+0.1%
13.8%US$25.00US$16.00n/a15
Jan ’25US$23.26
US$19.70
-15.3%
16.8%US$25.00US$13.00n/a15
Dec ’24US$21.42
US$19.30
-9.9%
16.8%US$25.00US$13.00n/a15
Nov ’24US$17.08
US$20.07
+17.5%
18.1%US$27.00US$13.00US$27.9315
Oct ’24US$19.73
US$20.50
+3.9%
17.7%US$27.00US$14.00US$27.0915
Sep ’24US$18.27
US$20.50
+12.2%
17.7%US$27.00US$14.00US$28.4615
Aug ’24US$21.92
US$22.07
+0.7%
13.1%US$27.00US$18.00US$31.2015
Jul ’24US$22.67
US$22.29
-1.7%
11.0%US$27.00US$19.00US$27.0114
Jun ’24US$21.33
US$22.54
+5.7%
10.5%US$27.00US$19.00US$20.4113
May ’24US$18.49
US$22.09
+19.5%
8.5%US$25.00US$20.00US$19.0011
Apr ’24US$19.64
US$22.09
+12.5%
8.5%US$25.00US$20.00US$21.6211
Mar ’24US$20.22
US$21.91
+8.4%
7.7%US$25.00US$20.00US$21.1011
Feb ’24US$19.27
US$20.00
+3.8%
8.4%US$23.00US$17.00US$20.6810
Jan ’24US$17.20
US$20.89
+21.4%
8.9%US$25.00US$18.00US$23.269
Dec ’23US$18.90
US$21.00
+11.1%
4.3%US$22.00US$20.00US$21.425

Analyst Forecast: Target price is lower than the current share price.

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