RXO, Inc. (NYSE: RXO)

Sector: Industrials Industry: Trucking CIK: 0001929561
Market Cap 2.51 Bn
P/B 1.63
P/E -25.14
P/S 0.44
ROIC (Qtr) -3.23
Div Yield % 0.00
Rev 1y % (Qtr) -11.88
Total Debt (Qtr) 670.00 Mn
Debt/Equity (Qtr) 0.43
Add ratio to table...

About

RXO, Inc., often recognized by its stock symbol RXO, operates in the transportation industry as a leading provider of brokered transportation services. The company boasts a strong presence in the e-commerce and retail sectors, with an asset-light business model that is revolutionizing the way shippers and carriers connect. RXO's primary business activities revolve around its truck brokerage, managed transportation, last mile, and freight forwarding services. The company's truck brokerage business acts as a bridge between shippers and qualified...

Read more

Investment thesis

Bull case

  • Strong tangible asset base of 1.71B provides 2.56x coverage of total debt 670M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 1.71B provides 6.14x coverage of working capital 279M, indicating strong operational backing.
  • Tangible assets of 1.71B provide robust 4.21x coverage of other current liabilities 407M, indicating strong asset backing.

Bear case

  • Operating cash flow of 51M barely covers its investment activities of (71M), with a coverage ratio of -0.72, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 17M provide limited coverage of acquisition spending of (10M), which is -1.70x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 51M shows concerning coverage of stock compensation expenses of 29M, with a 1.76 ratio indicating potential earnings quality issues.
  • Free cash flow of (6M) provides weak coverage of capital expenditures of 57M, with a -0.11 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (80M) show weak coverage of depreciation charges of 116M, with a -0.69 ratio indicating high capital intensity and potential reinvestment needs.

Industry Sector Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Trucking
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ODFL Old Dominion Freight Line, Inc. 48.73 Bn 782.67 33.27 0.08 Bn
2 XPO XPO, Inc. 23.75 Bn 75.14 2.91 4.09 Bn
3 SAIA Saia Inc 10.38 Bn 36.60 3.21 0.35 Bn
4 TFII TFI International Inc. 10.05 Bn 32.37 1.27 3.33 Bn
5 KNX Knight-Swift Transportation Holdings Inc. 9.89 Bn 11.13 1.36 3.22 Bn
6 SNDR Schneider National, Inc. 4.98 Bn 12.00 1.10 0.52 Bn
7 ARCB Arcbest Corp /De/ 2.70 Bn 45.25 0.96 0.46 Bn
8 RXO RXO, Inc. 2.51 Bn -25.14 0.44 0.67 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.97 1.82
EV to Cash from Ops. EV/CFO 62.17 30.89
EV to Debt EV to Debt 4.73 334.88
EV to EBIT EV/EBIT -39.63 41.39
EV to EBITDA EV/EBITDA 88.07 30.41
EV to Free Cash Flow [EV/FCF] EV/FCF -528.43 8.80
EV to Market Cap EV to Market Cap 1.26 1.18
EV to Revenue EV/Rev 0.55 3.58
Price to Book Value [P/B] P/B 1.63 8.76
Price to Earnings [P/E] P/E -25.14 71.24
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.04
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 27.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.34
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 16.21
Interest Coverage Int. cover (Qtr) -2.29 2,509.13
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -26.67 -384.47
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -51.43 6.65
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.53
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 73.39 -139.40
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 119.25 -265.30
EBIT Growth (1y) % EBIT 1y % (Qtr) 70.80 -150.93
EBT Growth (1y) % EBT 1y % (Qtr) 62.17 -53,829.57
EPS Growth (1y) % EPS 1y % (Qtr) 72.81 -170.98
FCF Growth (1y) % FCF 1y % (Qtr) 89.47 59.93
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 20.18 -3.53
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.75 1.07
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.02 0.23
Current Ratio Curr Ratio (Qtr) 1.27 1.44
Debt to Equity Ratio Debt/Equity (Qtr) 0.43 0.64
Interest Cover Ratio Int Coverage (Qtr) -2.29 2,509.13
Times Interest Earned Times Interest Earned (Qtr) -2.29 2,509.13
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.60 10.72
EBIT Margin % EBIT Margin % (Qtr) -1.39 1.50
EBT Margin % EBT Margin % (Qtr) -2.00 0.13
Gross Margin % Gross Margin % (Qtr) 16.40 46.24
Net Profit Margin % Net Margin % (Qtr) -1.70 -0.55