(RXO) RXO - Overview
Sector: Industrials | Industry: Trucking | Exchange: NYSE (USA) | Market Cap: 3.933m USD | Total Return: 59.8% in 12m
Avg Turnover: 43.8M
Qual. Beats: 0
Rev. Trend: 85.7%
Qual. Beats: 1
Warnings
High Debt/EBITDA (103.3) with thin interest coverage (-3.9)
High Debt while negative Cash Flow
Interest Coverage Ratio -3.9 is critical
Altman Z'' -0.30 < 1.0 - financial distress zone
Extended 1w Choppy
Tailwinds
Leader, Tailwind, Confidence
RXO, Inc. is a North Carolina-based logistics provider specializing in truck brokerage and asset-light transportation services across North America, Europe, and Asia. The company operates primarily by connecting shippers to a network of third-party carriers rather than maintaining a large fleet of company-owned vehicles, a model that typically allows for higher scalability and lower capital expenditure compared to traditional trucking firms.
The company’s service portfolio includes managed transportation, last-mile delivery, and global freight forwarding encompassing ocean, air, and customs brokerage. As a player in the Cargo Ground Transportation sector, RXO relies heavily on proprietary technology platforms to optimize freight matching and improve margins in a highly fragmented brokerage market. For a deeper dive into these operational metrics, investors may find ValueRay worth exploring. The firm was established as an independent entity in 2022 following its spin-off from XPO.
- Brokerage margin expansion depends on truckload capacity tightening and spot rate volatility
- Acquisition of Coyote Logistics increases market share and scales North American operations
- Managed transportation growth relies on enterprise contract wins and supply chain outsourcing
- Last mile delivery demand fluctuates with consumer spending on heavy goods and appliances
- Digital platform adoption rates drive operational efficiency and long-term operating leverage
| Net Income: -105.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.00 > 0.02 and ΔFCF/TA 1.66 > 1.0 |
| NWC/Revenue: 5.01% < 20% (prev 5.74%; Δ -0.73% < -1%) |
| CFO/TA 0.01 > 3% & CFO 46.0m > Net Income -105.0m |
| Current Ratio: 1.27 > 1.5 & < 3 |
| Outstanding Shares: last quarter (169.1m) vs 12m ago 0.64% < -2% |
| Gross Margin: 17.11% > 18% (prev 0.17%; Δ 1.69k% > 0.5%) |
| Asset Turnover: 174.5% > 50% (prev 153.5%; Δ 21.05% > 0%) |
| Interest Coverage Ratio: -3.88 > 6 (EBITDA TTM 9.00m / Interest Expense TTM 26.0m) |
| A: 0.09 (Total Current Assets 1.33b - Total Current Liabilities 1.05b) / Total Assets 3.27b |
| B: -0.13 (Retained Earnings -420.0m / Total Assets 3.27b) |
| C: -0.03 (EBIT TTM -101.0m / Avg Total Assets 3.29b) |
| D: -0.24 (Book Value of Equity -425.0m / Total Liabilities 1.76b) |
| Altman-Z'' = -0.30 = B |
| DSRI: 0.93 (Receivables 1.22b/1.15b, Revenue 5.73b/5.07b) |
| GMI: 0.96 (GM 17.11% / 16.51%) |
| AQI: 0.97 (AQ_t 0.48 / AQ_t-1 0.50) |
| SGI: 1.13 (Revenue 5.73b / 5.07b) |
| TATA: -0.05 (NI -105.0m - CFO 46.0m) / TA 3.27b) |
| Beneish M = -3.08 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 24.36 with a total of 3,379,225 shares traded.
Over the past week, the price has changed by +30.39%,
over one month by +27.39%,
over three months by +66.23% and
over the past year by +59.80%.
RXO has received a consensus analysts rating of 3.10. Therefore, it is recommended to hold RXO.
- StrongBuy: 3
- Buy: 1
- Hold: 14
- Sell: 1
- StrongSell: 2
| Analysts Target Price | 21.3 | -12.7% |
P/S = 0.686
P/B = 2.3093
P/EG = 140.8667
Revenue TTM = 5.73b USD
EBIT TTM = -101.0m USD
EBITDA TTM = 9.00m USD
Long Term Debt = 430.0m USD (from longTermDebt, last quarter)
Short Term Debt = 87.0m USD (from shortTermDebt, last quarter)
Debt = 951.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 252.0m
Net Debt = 930.0m USD (calculated: Debt 951.0m - CCE 21.0m)
Enterprise Value = 4.86b USD (3.93b + Debt 951.0m - CCE 21.0m)
Interest Coverage Ratio = -3.88 (Ebit TTM -101.0m / Interest Expense TTM 26.0m)
EV/FCF = -324.2x (Enterprise Value 4.86b / FCF TTM -15.0m)
FCF Yield = -0.31% (FCF TTM -15.0m / Enterprise Value 4.86b)
FCF Margin = -0.26% (FCF TTM -15.0m / Revenue TTM 5.73b)
Net Margin = -1.83% (Net Income TTM -105.0m / Revenue TTM 5.73b)
Gross Margin = 17.11% ((Revenue TTM 5.73b - Cost of Revenue TTM 4.75b) / Revenue TTM)
Gross Margin QoQ = 16.0% (prev 19.95%)
Tobins Q-Ratio = 1.49 (Enterprise Value 4.86b / Total Assets 3.27b)
Interest Expense / Debt = 2.73% (Interest Expense 26.0m / Debt 951.0m)
Taxrate = 21.0% (US default 21%)
NOPAT = -79.8m (EBIT -101.0m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.27 (Total Current Assets 1.33b / Total Current Liabilities 1.05b)
Debt / Equity = 0.63 (Debt 951.0m / totalStockholderEquity, last quarter 1.51b)
Debt / EBITDA = 103.3 (Net Debt 930.0m / EBITDA 9.00m)
Debt / FCF = -62.0 (negative FCF - burning cash) (Net Debt 930.0m / FCF TTM -15.0m)
Total Stockholder Equity = 1.55b (last 4 quarters mean from totalStockholderEquity)
RoA = -3.20% (Net Income -105.0m / Total Assets 3.27b)
RoE = -5.32% (Net Income TTM -105.0m / Total Stockholder Equity 1.97b)
RoCE = -4.20% (EBIT -101.0m / Capital Employed (Equity 1.97b + L.T.Debt 430.0m))
RoIC = -3.49% (negative operating profit) (NOPAT -79.8m / Invested Capital 2.29b)
WACC = 10.45% (E(3.93b)/V(4.88b) * Re(12.46%) + D(951.0m)/V(4.88b) * Rd(2.73%) * (1-Tc(0.21)))
Discount Rate = 12.46% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | Cagr: 16.65%
[DCF] Fair Price = unknown (Cash Flow -15.0m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.0 | # QB: 0
Revenue Correlation: 85.70 | Revenue CAGR: 18.66% | SUE: 2.37 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.02 | Chg30d=N/A | Revisions=+78% | Analysts=18
EPS next Quarter (2026-09-30): EPS=0.03 | Chg30d=N/A | Revisions=+38% | Analysts=17
EPS current Year (2026-12-31): EPS=0.06 | Chg30d=N/A | Revisions=+79% | GrowthEPS=+249.2% | GrowthRev=+8.7%
EPS next Year (2027-12-31): EPS=0.49 | Chg30d=+27.64% | Revisions=+71% | GrowthEPS=+716.5% | GrowthRev=+7.2%
[Analyst] Revisions Ratio: +79%