GXO Logistics (GXO) AI Stock Analysis

• Market Cap: $5.67B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 64.8
• Beta (1Y): 1.09
• Revenue Growth: 16.94%
• EPS Growth: -14.01%
• Country: US
• Employees: 150,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.79
• Shares Outstanding: 114,489,430
• 10 Day Avg. Volume: 1,399,386
• 30 Day Avg. Volume: 1,037,028
• PEG Ratio: -0.92
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 27.34
• Enterprise Value/Market Cap: 1.99
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 6.95
• Enterprise Value/Ebitda: 15.95
• 1Y Price Target: $63.54
• Price Target Upside: 28.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 2.48
• Revenue Forecast (FY): $13.15B

• Rating: 63 Neutral
• Price Target: $56.00 ▲(13.06% Upside)

GXO's overall stock score is driven by strong earnings call results and positive revenue growth, offset by high valuation and financial leverage concerns. The company's strategic initiatives and robust sales pipeline provide a positive outlook, but profitability and leverage management remain critical areas for improvement.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong demand for GXO's logistics services and successful market penetration, supporting long-term business expansion.

New Business Wins

The increase in new business wins demonstrates GXO's competitive edge and ability to attract large contracts, ensuring sustained revenue streams.

Wincanton Integration

Successful integration of Wincanton will enhance GXO's market position in Europe, particularly in high-growth sectors, driving future revenue growth.

Negative Factors

Profitability Margins

Declining profitability margins indicate challenges in cost management, which could impact GXO's ability to sustain long-term profitability.

High Leverage

High leverage increases financial risk and limits GXO's financial flexibility, potentially affecting future investment and growth capabilities.

Softer Volume Trends

Continued softer volume trends could hinder GXO's growth momentum, affecting revenue and profitability in the near to medium term.

GXO Logistics Business Overview & Revenue Model

Company Description

GXO Logistics (GXO) is a leading global provider of contract logistics services, specializing in supply chain solutions for various sectors, including e-commerce, retail, and consumer goods. The company offers a range of services, including warehousing, distribution, inventory management, and transportation management, leveraging advanced technology and automation to optimize operations and enhance customer experience. With a focus on innovation and efficiency, GXO aims to meet the evolving needs of its diverse client base across multiple industries.

How the Company Makes Money

GXO Logistics generates revenue primarily through long-term contracts with clients, providing customized logistics solutions tailored to their specific needs. The company's revenue model is built on service fees for warehousing and distribution services, as well as value-added services such as inventory management and order fulfillment. Key revenue streams include fees from managing logistics operations for large retailers and e-commerce companies, which often involve complex supply chain management processes. Additionally, GXO benefits from partnerships with major brands and enterprises, enabling it to secure large-scale contracts that contribute significantly to its earnings. The company's investment in technology and automation also helps reduce operational costs and improve service efficiency, further enhancing its profitability.

GXO Logistics Financial Statement Overview

Summary

GXO Logistics shows strong revenue growth and cash flow improvements but faces challenges in profitability margins and increased leverage. The high debt-to-equity ratio and declining return on equity suggest potential financial risks. Overall, while the company is growing, it needs to focus on improving profitability and managing its leverage to enhance financial stability.

Income Statement

GXO Logistics shows a steady revenue growth trend with a TTM growth rate of 1.88% and a solid historical growth trajectory. However, the profitability margins have decreased over time, with the TTM net profit margin at 0.69% compared to 1.14% in the previous year. The gross profit margin also declined from 15.85% to 12.53% TTM, indicating pressure on cost management. Despite these challenges, the company maintains a positive EBIT and EBITDA margin, although both have seen a decline in the TTM period.

Balance Sheet

The balance sheet reflects a high leverage position with a TTM debt-to-equity ratio of 1.86, up from 1.72 in the previous year, indicating increased financial risk. The return on equity has decreased to 2.11% TTM from 4.46% in the previous year, suggesting reduced efficiency in generating returns on shareholders' equity. The equity ratio remains stable, indicating a balanced asset structure, but the high debt levels pose a potential risk.

Cash Flow

Cash flow analysis reveals a strong improvement in free cash flow growth at 271.75% TTM, showcasing effective cash management. The operating cash flow to net income ratio is low at 0.05 TTM, suggesting potential challenges in converting income into cash. However, the free cash flow to net income ratio of 0.44 TTM indicates a reasonable level of cash generation relative to net income, highlighting a positive cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.92B	11.71B	9.78B	8.99B	7.94B	6.20B
Gross Profit	1.62B	1.44B	1.38B	1.22B	968.00M	703.00M
EBITDA	708.00M	664.00M	680.00M	622.00M	509.00M	341.00M
Net Income	89.00M	134.00M	229.00M	197.00M	153.00M	-31.00M
Balance Sheet
Total Assets	11.91B	11.27B	9.51B	9.22B	7.27B	6.55B
Cash, Cash Equivalents and Short-Term Investments	339.00M	413.00M	468.00M	495.00M	333.00M	328.00M
Total Debt	5.50B	5.18B	4.09B	4.22B	2.81B	2.10B
Total Liabilities	8.92B	8.23B	6.56B	6.54B	4.88B	3.60B
Stockholders Equity	2.96B	3.00B	2.91B	2.65B	2.35B	2.82B
Cash Flow
Free Cash Flow	345.73M	190.00M	284.00M	200.00M	205.00M	111.00M
Operating Cash Flow	450.00M	549.00M	558.00M	542.00M	455.00M	333.00M
Investing Cash Flow	-219.00M	-1.16B	-410.00M	-1.15B	-207.00M	-280.00M
Financing Cash Flow	-459.00M	636.00M	-186.00M	787.00M	-241.00M	67.00M

GXO Logistics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GXO, the sentiment is Negative. The current price of 49.53 is below the 20-day moving average (MA) of 53.23, below the 50-day MA of 52.74, and above the 200-day MA of 45.92, indicating a neutral trend. The MACD of -0.77 indicates Positive momentum. The RSI at 36.08 is Neutral, neither overbought nor oversold. The STOCH value of 15.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GXO.

GXO Logistics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDX	75 Outperform	$63.13B	15.64	14.98%	2.12%	1.14%	4.99%
XPO	73 Outperform	$15.70B	48.07	19.26%	―	-0.30%	-11.02%
CHRW	71 Outperform	$18.05B	30.97	34.32%	1.66%	-7.08%	71.39%
EXPD	67 Neutral	$18.55B	22.53	36.47%	1.11%	12.54%	19.59%
JBHT	65 Neutral	$15.50B	28.18	15.13%	1.08%	-1.60%	4.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GXO	63 Neutral	$5.67B	64.84	2.94%	―	16.94%	-14.01%

GXO Logistics Corporate Events

GXO Logistics Reports Record Revenue for Q3 2025

GXO Logistics, Inc. is the world’s largest pure-play contract logistics provider, specializing in technologically advanced supply chain and ecommerce solutions for blue-chip companies across the globe. Headquartered in Greenwich, Connecticut, the company operates over 1,000 facilities with more than 150,000 team members worldwide.

GXO Logistics Reports Record Revenue and Strong Growth

The latest earnings call from GXO Logistics Inc. was filled with optimism as the company reported significant achievements in revenue growth, new business wins, and successful integration efforts. Despite facing some challenges with softer volume trends and integration delays, the company expressed confidence in its growth trajectory and margin expansion plans for 2026.

GXO Logistics Unveils Q3 2025 Investor Presentation

On November 4, 2025, GXO Logistics released a slide presentation for future investor presentations, detailing their third-quarter 2025 results. The presentation emphasized the company’s use of non-GAAP financial measures to provide insights into their ongoing business operations, excluding items not reflective of core performance. These measures aim to assist investors in understanding trends and making comparisons with prior periods. The announcement highlights GXO’s commitment to transparency and its strategic focus on enhancing stockholder value through effective capital deployment and operational efficiency.

The most recent analyst rating on (GXO) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on GXO Logistics stock, see the GXO Stock Forecast page.

GXO Logistics Announces Organizational Changes for Growth

On October 24, 2025, GXO Logistics announced that Richard Cawston would depart from his role as Chief Revenue Officer & President of Europe in March 2026, with a transition plan in place. On October 29, 2025, GXO Logistics revealed organizational changes aimed at accelerating growth, simplifying its structure, and enhancing execution. Michael Jacobs was appointed as President of the Americas and Asia Pacific, succeeding Jorge Guanter. The company also streamlined its management structure, with regional leaders reporting directly to the CEO, and introduced a new Chief Operating Officer role to drive operational excellence.

The most recent analyst rating on (GXO) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on GXO Logistics stock, see the GXO Stock Forecast page.

GXO Logistics Inc’s Earnings Call Highlights Growth

GXO Logistics Inc’s recent earnings call painted a picture of robust growth and strategic advancements, underscoring the company’s strong market position. The call was marked by significant achievements such as record revenue, increased guidance, and strategic acquisitions. Despite some challenges, including a CFO transition and a required divestiture, the overall sentiment was overwhelmingly positive.

GXO Logistics Reports Strong Q2 2025 Growth

GXO Logistics, Inc., the world’s largest pure-play contract logistics provider, specializes in advanced supply chain and ecommerce solutions for leading blue-chip companies, leveraging its extensive global network and technological expertise to address complex logistics challenges.