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 Analysis

Mediocre balance sheet and slightly overvalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

21.2%

XPO

3.1%

US Logistics

2.0%

US Market


1 Year Return

48.1%

XPO

10.1%

US Logistics

23.6%

US Market

Return vs Industry: XPO exceeded the US Logistics industry which returned 13.3% over the past year.

Return vs Market: XPO exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

XPOIndustryMarket
7 Day21.2%3.1%2.0%
30 Day20.4%3.7%3.9%
90 Day22.3%4.2%12.0%
1 Year48.1%48.1%12.7%10.1%26.2%23.6%
3 Year119.1%119.1%15.7%8.2%53.2%43.3%
5 Year150.6%150.6%27.3%14.1%75.7%56.3%

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 ($81.58) is trading below our estimate of fair value ($197.7)

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 (23.2x) compared to the Logistics industry average (20.3x).

PE vs Market: XPO is poor value based on its PE Ratio (23.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: XPO is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: XPO is overvalued based on its PB Ratio (3x) compared to the US Logistics industry average (2.9x).


Next Steps

Future Growth

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

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XPO's forecast earnings growth (17.6% per year) is above the savings rate (1.7%).

Earnings vs Market: XPO's earnings (17.6% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: XPO's earnings are forecast to grow, but not significantly.

Revenue vs Market: XPO's revenue (4.4% per year) is forecast to grow slower than the US market (7.5% 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 Forecasts


Future Return on Equity

Future ROE: XPO's Return on Equity is forecast to be low in 3 years time (17.3%).


Next Steps

Past Performance

How has XPO Logistics performed over the past 5 years?

63.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XPO has high quality earnings.

Growing Profit Margin: XPO's current net profit margins (2.2%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: XPO has become profitable over the past 5 years, growing earnings by 63.2% 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 (-25.8%) over the past year, making it difficult to compare to the Logistics industry average (-8.7%).


Return on Equity

High ROE: XPO's Return on Equity (14.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is XPO Logistics's financial position?


Financial Position Analysis

Short Term Liabilities: XPO's short term assets ($3.4B) exceed its short term liabilities ($3.2B).

Long Term Liabilities: XPO's short term assets ($3.4B) do not cover its long term liabilities ($7.7B).


Debt to Equity History and Analysis

Debt Level: XPO's debt to equity ratio (166.1%) is considered high.

Reducing Debt: XPO's debt to equity ratio has increased from 36.6% to 166.1% over the past 5 years.

Debt Coverage: XPO's debt is well covered by operating cash flow (20.5%).

Interest Coverage: XPO's interest payments on its debt are well covered by EBIT (3.2x 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?

0.013%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years0.01%

Current dividend yield vs market & industry

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

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

3.6yrs

Average management tenure


CEO

Bradley Jacobs (62yo)

8.3yrs

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 ($USD13.33M) is above average for companies of similar size in the US market ($USD6.46M).

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

3.6yrs

Average Tenure

49yo

Average Age

Experienced Management: XPO's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: XPO's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$54,924,30318 Nov 19
Spruce House Capital LLC
EntityCompany
Shares652,900
Max PriceUS$84.36
SellUS$21,065,32014 Nov 19
Spruce House Capital LLC
EntityCompany
Shares247,100
Max PriceUS$85.93
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

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


Management Team

  • Bradley Jacobs (62yo)

    Chairman & CEO

    • Tenure: 8.3yrs
    • Compensation: US$13.33m
  • Erin Kurtz

    Senior Vice President of Communications

    • Tenure: 3.2yrs
  • Mario Harik (38yo)

    Chief Information Officer

    • Tenure: 8.2yrs
    • Compensation: US$1.94m
  • Tavio Headley (41yo)

    Senior Director of Investor Relations

    • Tenure: 6.3yrs
  • Troy Cooper (49yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$3.01m
  • Meghan Henson

    Chief Human Resources Officer

    • Tenure: 3.6yrs
  • Lance Robinson

    Chief Accounting Officer

    • Tenure: 4.3yrs
  • Karlis Kirsis

    Senior VP & Corporate Counsel

    • Sarah Glickman (49yo)

      Acting Chief Financial Officer

      • Tenure: 1.4yrs
      • Compensation: US$4.23m
    • Michele Chapman

      Senior Vice President of Sales Operations

      • Tenure: 2yrs

    Board Members

    • Bradley Jacobs (62yo)

      Chairman & CEO

      • Tenure: 8.3yrs
      • Compensation: US$13.33m
    • Aris Kekedjian (52yo)

      Independent Director

      • Tenure: 0.3yrs
    • Oren Shaffer (77yo)

      Independent Director

      • Tenure: 8.3yrs
      • Compensation: US$291.55k
    • Michael Jesselson (67yo)

      Lead Independent Director

      • Tenure: 3.8yrs
      • Compensation: US$291.55k
    • Adrian Kingshott (59yo)

      Independent Director

      • Tenure: 8.3yrs
      • Compensation: US$281.55k
    • Jason Papastavrou (56yo)

      Independent Director

      • Tenure: 8.3yrs
      • Compensation: US$281.55k
    • AnnaMaria DeSalva (50yo)

      Independent Vice Chairman of the Board

      • Tenure: 0.9yrs
      • Compensation: US$275.90k
    • Gena Ashe (57yo)

      Independent Director

      • Tenure: 3.8yrs
      • Compensation: US$272.19k
    • Marlene Colucci (56yo)

      Independent Director

      • Tenure: 0.9yrs

    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$8.735b
    • Shares outstanding: 92.30m
    • 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 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. Its Logistics segment offers a range of contract logistics services, including value-added warehousing and distribution, e-commerce fulfillment, cold chain solutions, reverse logistics, packaging and labeling, factory support, aftermarket support, inventory management and personalization services; and engineered and customized solutions and supply chain optimization services; The company offers its services to customers in various industries, such as retail, e-commerce, food and beverage, consumer packaged goods. XPO Logistics, Inc. was founded in 1996 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 Analysis2020/01/19 00:00
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    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.