GXO Logistics (GXO) AI Stock Analysis

• Market Cap: $6.54B
• Dividend Yield: N/A
• Average Volume (3M): 929.99K
• Price to Earnings (P/E): 74.0
• Beta (1Y): 1.08
• 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: 114,493,290
• 10 Day Avg. Volume: 887,663
• 30 Day Avg. Volume: 929,989
• 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: 1.73
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 6.95
• Enterprise Value/Ebitda: 15.95
• 1Y Price Target: $66.08
• Price Target Upside: 16.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 3.04
• Revenue Forecast (FY): $13.97B

• Rating: 68 Neutral
• Price Target: $58.00 ▲(2.58% Upside)

GXO Logistics' overall score is driven by strong technical indicators and positive earnings call sentiment, offset by valuation concerns and financial leverage risks. The company's growth prospects and strategic initiatives provide a positive outlook, but profitability and valuation remain areas to watch.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for GXO's logistics services and successful client acquisition, supporting long-term business expansion.

Operational Excellence

The new COO is expected to enhance productivity and efficiency, driving operational improvements and potentially increasing profitability.

New Business Wins

Significant new business wins reflect GXO's competitive edge and ability to capture market share, contributing to sustained revenue growth.

Negative Factors

High Leverage

Increased leverage poses financial risks, potentially limiting GXO's flexibility to invest in growth opportunities and manage economic downturns.

Profitability Margins

Declining profitability margins suggest challenges in cost management, which could impact long-term profitability if not addressed.

Integration Delays

Integration delays can hinder expected synergies and margin improvements, affecting operational efficiency and financial performance.

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, which involve long-term agreements with clients for the management of their supply chains. The company's revenue model is built on service fees charged for warehousing, transportation, and other logistics services provided to clients. Key revenue streams include performance-based incentives, where GXO earns additional compensation for meeting or exceeding service level agreements. The company also benefits from partnerships with major retailers and e-commerce platforms, which contribute significantly to its earnings. Furthermore, GXO's investment in advanced technology and automation enhances operational efficiencies, potentially leading to cost savings and increased 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: Positive
• Last Price: 56.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 56.54 is above the 20-day moving average (MA) of 54.99, above the 50-day MA of 52.52, and above the 200-day MA of 48.52, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 60.26 is Neutral, neither overbought nor oversold. The STOCH value of 72.36 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	80 Outperform	$21.95B	26.66	36.47%	1.02%	12.54%	19.59%
FDX	76 Outperform	$73.63B	17.27	15.87%	1.94%	3.09%	14.94%
CHRW	72 Outperform	$20.71B	35.54	34.32%	1.51%	-7.08%	71.39%
XPO	70 Outperform	$18.13B	54.06	19.26%	―	-0.30%	-11.02%
JBHT	69 Neutral	$19.66B	33.72	15.13%	0.89%	-1.60%	4.87%
GXO	68 Neutral	$6.54B	74.01	2.94%	―	16.94%	-14.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

GXO Logistics Corporate Events

GXO Logistics Announces Leadership Transition

On December 15, 2025, GXO Logistics announced that Brad Jacobs will step down as Non-Executive Chairman of the Board, effective December 31, 2025, with Patrick Byrne succeeding him. This leadership transition follows a period of significant transformation at GXO, including new senior leadership hires and the acquisition of Wincanton, positioning the company for its next growth phase.

The most recent analyst rating on (GXO) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on GXO Logistics stock, see the GXO Stock Forecast page.

GXO Logistics Appoints Bart Beeks as COO

On December 11, 2025, GXO Logistics announced the appointment of Bart Beeks as Chief Operating Officer, effective January 2, 2026. Beeks, with extensive experience from CEVA Logistics, will drive GXO’s global operational excellence and enhance productivity and efficiency across its network. This strategic move is expected to increase value for customers and improve the company’s operational model.

The most recent analyst rating on (GXO) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on GXO Logistics stock, see the GXO Stock Forecast page.

GXO Logistics Issues €500M Notes for Strategic Growth

On November 24, 2025, GXO Logistics Capital B.V., a subsidiary of GXO Logistics, issued €500 million in 3.750% Notes due 2030, guaranteed by GXO. The issuance is part of a strategic financial maneuver, involving major financial institutions, to strengthen GXO’s financial position and flexibility. Additionally, GXO amended its credit facilities to adjust leverage ratio calculations, allowing for improved financial management and operational flexibility. These actions are expected to enhance GXO’s market positioning and provide stability for stakeholders.

The most recent analyst rating on (GXO) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on GXO Logistics stock, see the GXO Stock Forecast page.

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.