NYSE:XPO

Stock Analysis Report

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Market Cap

US$9.8b

Last Updated

2021/08/03 23:38 UTC

Data Sources

Company Financials +

Executive Summary

XPO Logistics, Inc. provides supply chain solutions in the United States, rest of North America, France, the United Kingdom, rest of Europe, and internationally. More Details


Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has XPO Logistics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: XPO is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: XPO's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-38.2%

XPO

-1.6%

US Logistics

0.9%

US Market


1 Year Return

10.4%

XPO

28.9%

US Logistics

34.7%

US Market

Return vs Industry: XPO underperformed the US Logistics industry which returned 29.2% over the past year.

Return vs Market: XPO underperformed the US Market which returned 34.4% over the past year.


Shareholder returns

XPOIndustryMarket
7 Day-38.2%-1.6%0.9%
30 Day-40.4%-8.4%0.2%
90 Day-40.6%-9.9%4.7%
1 Year89.7%10.4%33.1%28.9%36.8%34.7%
3 Year41.0%-17.9%47.7%35.9%62.5%52.4%
5 Year300.9%133.2%101.7%78.0%123.1%98.4%

Long-Term Price Volatility Vs. Market

How volatile is XPO Logistics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is XPO Logistics undervalued compared to its fair value and its price relative to the market?

39.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: XPO ($85.8) is trading below our estimate of fair value ($142.77)

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


Price To Earnings Ratio

PE vs Industry: XPO is poor value based on its PE Ratio (18.7x) compared to the US Logistics industry average (18.5x).

PE vs Market: XPO is poor value based on its PE Ratio (18.7x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: XPO is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: XPO is overvalued based on its PB Ratio (3.3x) compared to the US Logistics industry average (3.1x).


Future Growth

How is XPO Logistics forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XPO's forecast earnings growth (21.1% per year) is above the savings rate (2%).

Earnings vs Market: XPO's earnings (21.1% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: XPO's revenue (4.2% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: XPO's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XPO's Return on Equity is forecast to be high in 3 years time (20.8%)


Past Performance

How has XPO Logistics performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XPO has high quality earnings.

Growing Profit Margin: XPO's current net profit margins (2.5%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: XPO has become profitable over the past 5 years, growing earnings by 17.9% per year.

Accelerating Growth: XPO's earnings growth over the past year (307.1%) exceeds its 5-year average (17.9% per year).

Earnings vs Industry: XPO earnings growth over the past year (307.1%) exceeded the Logistics industry 44.7%.


Return on Equity

High ROE: XPO's Return on Equity (16.9%) is considered low.


Financial Health

How is XPO Logistics's financial position?


Financial Position Analysis

Short Term Liabilities: XPO's short term assets ($4.5B) exceed its short term liabilities ($4.4B).

Long Term Liabilities: XPO's short term assets ($4.5B) do not cover its long term liabilities ($8.2B).


Debt to Equity History and Analysis

Debt Level: XPO's debt to equity ratio (177.7%) is considered high.

Reducing Debt: XPO's debt to equity ratio has increased from 173.8% to 177.7% over the past 5 years.

Debt Coverage: XPO's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: XPO's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Dividend

What is XPO Logistics's current dividend yield, its reliability and sustainability?

0.002%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate XPO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate XPO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if XPO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if XPO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of XPO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Brad Jacobs (64 yo)

9.92yrs

Tenure

US$21,812,660

Compensation

Mr. Bradley S. Jacobs, also known as Brad, has been the Chairman and Chief Executive Officer of XPO Logistics, Inc., since September 2, 2011. Mr. Jacobs has been President of the Supervisory Board at XPO L...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD21.81M) is above average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Brad's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: XPO's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: XPO's board of directors are considered experienced (7.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: XPO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25.5%.


Top Shareholders

Company Information

XPO Logistics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: XPO Logistics, Inc.
  • Ticker: XPO
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: US$9.833b
  • Shares outstanding: 114.60m
  • Website: https://www.xpo.com

Number of Employees


Location

  • XPO Logistics, Inc.
  • Five American Lane
  • Greenwich
  • Connecticut
  • 6831
  • United States

Listings


Biography

XPO Logistics, Inc. provides supply chain solutions in the United States, rest of North America, France, the United Kingdom, rest of Europe, and internationally. The company operates in two segments, Trans...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 23:38
End of Day Share Price2021/08/03 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.