NYSE:XPO

Stock Analysis Report

Executive Summary

XPO Logistics, Inc. provides supply chain solutions in North America, France, the United Kingdom, Spain, Poland, Romania, Italy, Portugal, Slovakia, and internationally.


Snowflake Analysis

Very undervalued with moderate 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.9%

XPO

3.6%

US Logistics

5.3%

US Market


1 Year Return

-12.9%

XPO

-15.1%

US Logistics

-10.7%

US Market

Return vs Industry: XPO exceeded the US Logistics industry which returned -15.3% over the past year.

Return vs Market: XPO exceeded the US Market which returned -10.4% over the past year.


Shareholder returns

XPOIndustryMarket
7 Day-8.9%3.6%5.3%
30 Day-35.8%-0.08%-13.6%
90 Day-39.4%-14.8%-19.8%
1 Year-12.9%-12.9%-13.0%-15.1%-8.9%-10.7%
3 Year4.5%4.5%-2.4%-8.7%15.5%8.0%
5 Year12.7%12.7%6.2%-4.9%35.2%20.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: XPO ($51.43) is trading below our estimate of fair value ($122.84)

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


Price To Earnings Ratio

PE vs Industry: XPO is good value based on its PE Ratio (13x) compared to the Logistics industry average (17.6x).

PE vs Market: XPO is good value based on its PE Ratio (13x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: XPO is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: XPO is good value based on its PB Ratio (1.8x) compared to the US Logistics industry average (2x).


Next Steps

Future Growth

How is XPO Logistics forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XPO's forecast earnings growth (20% per year) is above the savings rate (1.7%).

Earnings vs Market: XPO's earnings (20% per year) are forecast to grow faster than the US market (12.2% per year).

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

Revenue vs Market: XPO's revenue (3.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: XPO's revenue (3.6% 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 low in 3 years time (16.7%).


Next Steps

Past Performance

How has XPO Logistics performed over the past 5 years?

61.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XPO has high quality earnings.

Growing Profit Margin: XPO's current net profit margins (2.3%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: XPO has become profitable over the past 5 years, growing earnings by 61.2% per year.

Accelerating Growth: XPO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: XPO had negative earnings growth (-2.8%) over the past year, making it difficult to compare to the Logistics industry average (-5.5%).


Return on Equity

High ROE: XPO's Return on Equity (15.2%) is considered low.


Next Steps

Financial Health

How is XPO Logistics's financial position?


Financial Position Analysis

Short Term Liabilities: XPO's short term assets ($3.3B) exceed its short term liabilities ($3.3B).

Long Term Liabilities: XPO's short term assets ($3.3B) do not cover its long term liabilities ($8.0B).


Debt to Equity History and Analysis

Debt Level: XPO's debt to equity ratio (170.8%) is considered high.

Reducing Debt: XPO's debt to equity ratio has increased from 35.4% to 170.8% over the past 5 years.

Debt Coverage: XPO's debt is not well covered by operating cash flow (16%).

Interest Coverage: XPO's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: XPO has a high level of physical assets or inventory.

Debt Coverage by Assets: XPO's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

0.019%

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 payouts.

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

3.6yrs

Average management tenure


CEO

Bradley Jacobs (62yo)

8.58s

Tenure

US$13,327,471

Compensation

Mr. Bradley S. Jacobs 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 Logistics Europe SA si ...


CEO Compensation Analysis

Compensation vs Market: Bradley's total compensation ($USD13.33M) is above average for companies of similar size in the US market ($USD5.48M).

Compensation vs Earnings: Bradley's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bradley Jacobs
Chairman & CEO8.58yrsUS$13.33mno data
Troy Cooper
President2yrsUS$3.01m0.16% $7.0m
Sarah Glickman
Senior VP of Corporate Finance & Transformation0.083yrUS$4.23m0.0021% $95.0k
Mario Harik
Chief Information Officer8.42yrsUS$1.94m0.092% $4.2m
David Wyshner
Chief Financial Officer0.083yrno datano data
Lance Robinson
Chief Accounting Officer4.5yrsno data0.073% $3.3m
Tavio Headley
Senior Director of Investor Relations6.58yrsno datano data
Erin Kurtz
Senior Vice President of Communications3.42yrsno datano data
Michele Chapman
Senior Vice President of Sales Operations2.25yrsno datano data
Meghan Henson
Chief Human Resources Officer3.83yrsno datano data

3.6yrs

Average Tenure

49yo

Average Age

Experienced Management: XPO's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bradley Jacobs
Chairman & CEO8.58yrsUS$13.33mno data
Aris Kekedjian
Independent Director0.50yrno data0.00062% $27.9k
Oren Shaffer
Independent Director8.58yrsUS$291.55k0.014% $609.2k
Michael Jesselson
Lead Independent Director4.08yrsUS$291.55k0.10% $4.5m
Adrian Kingshott
Independent Director8.58yrsUS$281.55k0.0081% $365.6k
Jason Papastavrou
Independent Director8.58yrsUS$281.55k0.019% $834.8k
AnnaMaria DeSalva
Independent Vice Chairman of the Board1.17yrsUS$275.90k0.0031% $140.5k
Gena Ashe
Independent Director4.08yrsUS$272.19kno data
Marlene Colucci
Independent Director1.17yrsno data0.0029% $128.8k

4.1yrs

Average Tenure

57yo

Average Age

Experienced Board: XPO's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$4.502b
  • Shares outstanding: 92.36m
  • Website: https://www.xpo.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XPONYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2002
UX2ADB (Deutsche Boerse AG)YesCommon StockDEEURJul 2002
0M1OLSE (London Stock Exchange)YesCommon StockGBUSDJul 2002
UX2ABRSE (Berne Stock Exchange)YesCommon StockCHCHFJul 2002
XPO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2002

Biography

XPO Logistics, Inc. provides supply chain solutions in North America, France, the United Kingdom, Spain, Poland, Romania, Italy, Portugal, Slovakia, and internationally. The company operates in two segments, Transportation and Logistics. The Transportation segment offers freight brokerage services comprising truck brokerage, intermodal, drayage, and expedite services; last mile services, primarily asset-light; density and day-definite regional, inter-regional, and transcontinental less-than-truckload freight services; full truckload services for transactional transportation of packaged goods, high cube products, and bulk goods; logistics services for domestic, cross-border, and international shipments; and managed transportation services. The Logistics segment provides a range of contract logistics services, including value-added warehousing, distribution and inventory management, omnichannel and e-commerce fulfillment, order personalization, cold chain solutions, reverse logistics, packaging and labeling, and factory and aftermarket support. This segment also offers engineered and customized solutions, and supply chain optimization services, including automation and predictive volume flow management solutions. It provides its services to customers in various industries, such as retail, e-commerce, food and beverage, technology, aerospace, wireless, manufacturing and other industrial, chemical, agribusiness, life sciences, healthcare, and consumer packaged goods. XPO Logistics, Inc. was founded in 2000 and is based in Greenwich, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 07:22
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.