GXO Logistics (GXO) AI Stock Analysis

• Market Cap: $4.95B
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 69.9
• Beta (1Y): 1.09
• Revenue Growth: 23.40%
• EPS Growth: -55.55%
• Country: US
• Employees: 150,000
• Sector: Industrials
• Sector Strength: 85
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.29
• Shares Outstanding: 114,418,990
• 10 Day Avg. Volume: 988,061
• 30 Day Avg. Volume: 1,111,483
• PEG Ratio: 0.96
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.98
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: 3.22
• 1Y Price Target: $50.55
• Price Target Upside: 16.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 71 Outperform
• Price Target: $45.00 ▲(4.02%Upside)

GXO's overall score is driven by strong earnings call highlights, steady financial performance, and positive technical indicators. However, high valuation and potential leverage risks slightly temper the outlook.

Positive Factors

Contract Wins

GXO delivered strong new contract wins and reaffirmed guidance.

Healthcare Sector Growth

A $2.5bn healthcare contract with the UK's NHS indicates growth into emerging categories.

Negative Factors

Leadership Challenges

Open questions center on a CEO replacement and the Wincanton approval.

Operational Costs

Margin visibility remains somewhat limited in the near term due to elevated operating costs and external volatility.

GXO Logistics Business Overview & Revenue Model

Company Description

GXO Logistics, Inc., together with its subsidiaries, provides logistics services worldwide. The company provides warehousing and distribution, order fulfilment, e-commerce, and other supply chain services, as well as reverse logistics or returns management services. As of December 31, 2021, it operated in approximately 906 facilities. The company serves various customers in the e-commerce, omnichannel retail, consumer technology, food and beverage, industrial and manufacturing, and consumer packaged goods industries. GXO Logistics, Inc. was incorporated in 2021 and is headquartered in Greenwich, Connecticut.

How the Company Makes Money

GXO Logistics generates revenue primarily through its contract logistics services. The company enters into agreements with businesses to manage their logistics operations, which include warehousing, transportation, and distribution services. GXO's revenue model is largely based on long-term contracts, where customers pay for the logistics solutions provided. The company benefits from significant partnerships with major retailers and manufacturers, which contribute to a steady stream of income. Additionally, GXO leverages technology and automation in its operations, allowing it to offer value-added services and maintain competitiveness, further enhancing its revenue potential.

GXO Logistics Financial Statement Overview

Summary

GXO Logistics shows steady revenue growth and a stable equity base, with moderate profitability and cash flow metrics suggesting areas for improvement. High debt levels pose potential leverage risks.

Income Statement

GXO Logistics shows consistent revenue growth, reaching $12.23 billion in TTM, up from $11.71 billion in 2024. The gross profit margin is approximately 12.72%, and the net profit margin is 0.61%, both indicating moderate profitability. The EBIT and EBITDA margins are 1.75% and 5.65% respectively, suggesting room for operational efficiency improvements. Revenue growth is positive, with a notable increase from 2023 to 2024, reflecting strong market performance.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of 1.85, indicating moderate leverage. Return on equity (ROE) is 2.61%, showing limited return on shareholders' investments. The equity ratio is 33.01%, displaying a stable financial position, though the high total debt level requires monitoring. Overall, the company maintains a stable asset base with potential leverage risks.

Cash Flow

The cash flow statement indicates positive operational cash flow at $528 million for TTM with a free cash flow of $164 million, showing a decrease compared to previous years. The operating cash flow to net income ratio is 7.04, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is 2.19, which suggests reduced cash available after investments. Cash flow growth needs improvement for stronger liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.23B	11.71B	9.78B	8.99B	7.94B	6.20B
	Gross Profit
1.56B	1.86B	1.38B	1.22B	968.00M	703.00M
	EBIT
214.00M	218.00M	318.00M	386.00M	277.00M	94.00M
	EBITDA
691.00M	816.00M	680.00M	697.00M	589.00M	415.00M
	Net Income Common Stockholders
75.00M	134.00M	229.00M	197.00M	153.00M	-22.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
288.00M	413.00M	468.00M	495.00M	333.00M	328.00M
	Total Assets
8.69B	11.27B	9.51B	9.22B	7.27B	6.55B
	Total Debt
5.31B	5.18B	4.09B	4.22B	2.81B	2.10B
	Net Debt
5.02B	4.76B	3.62B	3.72B	2.47B	1.78B
	Total Liabilities
5.05B	8.23B	6.56B	6.54B	4.88B	3.60B
	Stockholders Equity
2.87B	3.00B	2.91B	2.65B	2.35B	2.82B
Cash Flow		Free Cash Flow
164.00M	190.00M	284.00M	200.00M	205.00M	111.00M
	Operating Cash Flow
528.00M	549.00M	558.00M	542.00M	455.00M	333.00M
	Investing Cash Flow
-1.15B	-1.16B	-410.00M	-1.15B	-207.00M	-280.00M
	Financing Cash Flow
578.00M	636.00M	-186.00M	787.00M	-241.00M	67.00M

GXO Logistics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GXO, the sentiment is Positive. The current price of 43.26 is above the 20-day moving average (MA) of 41.82, above the 50-day MA of 38.61, and below the 200-day MA of 46.17, indicating a neutral trend. The MACD of 1.17 indicates Negative momentum. The RSI at 61.63 is Neutral, neither overbought nor oversold. The STOCH value of 70.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GXO.

GXO Logistics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPD	73 Outperform	$15.76B	19.11	37.70%	1.35%	24.07%	27.40%
GXO	71 Outperform	$4.95B	69.85	2.61%	―	23.40%	-55.55%
CHRW	71 Outperform	$11.14B	22.42	32.11%	2.65%	-0.22%	65.52%
LSTR	70 Outperform	$4.81B	27.29	18.34%	1.16%	-4.72%	-22.46%
JBHT	68 Neutral	$14.13B	25.87	13.97%	1.26%	-3.82%	-12.80%
Sector *	66 Neutral	$4.50B	12.26	5.40%	3.65%	4.17%	-12.02%
XPO	62 Neutral	$14.19B	37.06	26.24%	―	1.94%	60.91%

GXO Logistics Corporate Events

GXO Logistics Stockholders Elect Board Members in 2025

The 2025 annual meeting of GXO Logistics‘ stockholders took place on May 13, 2025. During the meeting, stockholders elected nine board members, ratified KPMG LLP as the independent auditor for 2025, and approved the executive compensation plan. These decisions are expected to influence the company’s governance and financial oversight in the coming year.

The most recent analyst rating on (GXO) stock is a Buy with a $83.00 price target. To see the full list of analyst forecasts on GXO Logistics stock, see the GXO Stock Forecast page.

GXO Logistics Releases Q1 2025 Investor Presentation

On May 7, 2025, GXO Logistics released a slide presentation to be used in future investor presentations, detailing their first quarter 2025 results. The presentation includes non-GAAP financial measures to provide insights into the company’s ongoing business operations, emphasizing metrics like adjusted EBITDA and free cash flow. These measures are intended to assist investors in analyzing trends and comparing performance across periods, although they are not directly comparable to GAAP measures. The release highlights the company’s strategic focus on enhancing shareholder value through effective capital deployment, despite challenges such as economic conditions and supply chain issues.