NYSE:XPO

Stock Analysis Report

Executive Summary

XPO Logistics, Inc. provides transportation and logistics services in the United States, North America, France, the United Kingdom, Europe, and internationally.

Snowflake

Fundamentals

Fair value 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


Market Performance


7 Day Return

6.2%

XPO

1.5%

US Logistics

1.0%

US Market


1 Year Return

-26.5%

XPO

-9.1%

US Logistics

6.7%

US Market

Return vs Industry: XPO underperformed the US Logistics industry which returned -9.1% over the past year.

Return vs Market: XPO underperformed the US Market which returned 6.7% over the past year.


Share holder returns

XPOIndustryMarket
7 Day6.2%1.5%1.0%
30 Day-0.9%-7.1%-1.8%
90 Day19.0%2.1%-1.8%
1 Year-26.5%-26.5%-6.9%-9.1%9.1%6.7%
3 Year117.7%117.7%14.3%6.7%46.1%36.6%
5 Year96.0%96.0%30.5%17.0%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: XPO ($74.04) is trading below our estimate of fair value ($155.36)

Significantly Undervalued: XPO is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: XPO is poor value based on its PE Ratio (23.9x) compared to the Logistics industry average (22.5x).

PE vs Market: XPO is poor value based on its PE Ratio (23.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: XPO is poor value based on its PEG Ratio (1x)


Price Based on Value of Assets

PB vs Industry: XPO is good value based on its PB Ratio (2.8x) compared to the US Logistics industry average (3x).


Next Steps

Future Growth

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

22.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: XPO's forecast earnings growth (22.9% per year) is above the savings rate (2.7%).

Earnings vs Market: XPO's earnings (22.9% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: XPO's revenue (4.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: XPO's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: XPO's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

Past Performance

How has XPO Logistics performed over the past 5 years?

64.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: XPO has become profitable over the past 5 years, growing earnings by 64.5% 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 (-22.2%) over the past year, making it difficult to compare to the Logistics industry average (-9.9%).


Return on Equity

High ROE: XPO's Return on Equity (13.8%) is considered low.


Return on Assets

ROA vs Industry: XPO's Return on Assets is below or equal to the Logistics industry average last year.


Return on Capital Employed

ROCE Improving: XPO has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is XPO Logistics's financial position?


Financial Position Analysis

Short Term Liabilities: XPO's short term assets ($3.8B) exceeds its short term liabilities ($3.7B)

Long Term Liabilities: XPO's short term assets (3.8B) do not cover its long term liabilities (7.7B)


Debt to Equity History and Analysis

Debt Level: XPO's debt to equity ratio (180.2%) is considered high

Reducing Debt: XPO's debt to equity ratio has increased from 11.3% to 180.2% over the past 5 years.

Debt Coverage: XPO's debt is not well covered by operating cash flow (19.4%).

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

0.018%

Expected Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Years0.02%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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

What is the CEO of XPO Logistics's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Bradley Jacobs (62yo)

8.1yrs

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 ($USD13.33M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

3.7yrs

Average Tenure

49yo

Average Age

Experienced Management: XPO's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

58yo

Average Age

Experienced Board: XPO's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: XPO insiders have bought and sold the same number of shares in the past 3 months.


Recent Insider Transactions

BuyUS$103,70312 Sep 19
Jason Papastavrou
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,375
Max PriceUS$75.42
SellUS$103,70312 Sep 19
Jason Papastavrou
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,375
Max PriceUS$75.42

Ownership Breakdown


Management Team

  • Bradley Jacobs (62yo)

    Chairman & CEO

    • Tenure: 8.1yrs
    • Compensation: US$13.33m
  • Erin Kurtz

    Senior Vice President of Communications

    • Tenure: 2.9yrs
  • Mario Harik (38yo)

    Chief Information Officer

    • Tenure: 7.9yrs
    • Compensation: US$1.94m
  • Tavio Headley (41yo)

    Senior Director of Investor Relations

    • Tenure: 6.1yrs
  • Troy Cooper (49yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$3.01m
  • Meghan Henson

    Chief Human Resources Officer

    • Tenure: 3.3yrs
  • Lance Robinson

    Chief Accounting Officer

    • Tenure: 4yrs
  • Patterson Mark

    Chief Financial Officer

    • Tenure: 0yrs
  • Karlis Kirsis

    Senior VP & Corporate Counsel

    • Tenure: 0yrs
  • Sarah Glickman (49yo)

    Acting Chief Financial Officer

    • Tenure: 1.2yrs
    • Compensation: US$4.23m

Board Members

  • Bradley Jacobs (62yo)

    Chairman & CEO

    • Tenure: 8.1yrs
    • Compensation: US$13.33m
  • Oren Shaffer (77yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$291.55k
  • Michael Jesselson (67yo)

    Lead Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$291.55k
  • Adrian Kingshott (59yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$281.55k
  • Jason Papastavrou (56yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$281.55k
  • AnnaMaria DeSalva (50yo)

    Independent Vice Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: US$275.90k
  • Gena Ashe (57yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$272.19k
  • Marlene Colucci (56yo)

    Independent Director

    • Tenure: 0.7yrs

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: 1996
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: US$6.825b
  • Shares outstanding: 92.18m
  • 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
XPO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2002

Biography

XPO Logistics, Inc. provides transportation and logistics services in the United States, North America, France, the United Kingdom, Europe, and internationally. The company’s Transportation segment offers  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:57
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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