GXO Logistics (GXO) AI Stock Analysis

• Market Cap: $5.90B
• Dividend Yield: N/A
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 80.4
• Beta (1Y): 1.08
• Revenue Growth: 23.40%
• EPS Growth: -55.55%
• Country: US
• Employees: 150,000
• Sector: Industrials
• Sector Strength: 89
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.29
• Shares Outstanding: 114,418,990
• 10 Day Avg. Volume: 803,354
• 30 Day Avg. Volume: 1,378,123
• PEG Ratio: -1.87
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.47
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 68.33
• Enterprise Value/Ebitda: 10.82
• 1Y Price Target: $57.83
• Price Target Upside: 16.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 74 Outperform
• Price Target: $54.00 ▲(8.48%Upside)

GXO Logistics receives a strong overall score driven by solid technical performance and positive corporate developments, including strategic acquisitions and leadership changes. However, the high P/E ratio and modest financial performance indicate areas for improvement. The promising guidance and strategic focus on technology and new markets support a positive outlook.

Positive Factors

Growth and Revenue

GXO has secured over $730mm in incremental 2025 revenue through new business wins, with the 10-year NHS Supply Chain contract being the largest.

Leadership

The appointment of Patrick Kelleher as CEO is seen as a positive development, given his experience with advanced robotics and successful M&A transactions at DHL Supply Chain.

Market Valuation

Analyst sees shares as undervalued by as much as 40-50%, indicating significant potential for value increase.

Negative Factors

Margin Visibility

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

Profitability

Greater consistency in margin expansion is desired before becoming more constructive on the name.

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 demonstrates steady revenue growth and a stable equity position, although profitability and cash flow metrics suggest areas for improvement. The company shows resilience in the logistics sector with potential leverage risks due to high debt levels. Operational efficiencies and improved cash flow management could enhance financial health further.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.71B	9.78B	8.99B	7.94B	6.20B
Gross Profit	1.86B	1.38B	1.22B	968.00M	703.00M
EBITDA	816.00M	680.00M	697.00M	589.00M	415.00M
Net Income	134.00M	229.00M	197.00M	153.00M	-22.00M
Balance Sheet
Total Assets	11.27B	9.51B	9.22B	7.27B	6.55B
Cash, Cash Equivalents and Short-Term Investments	413.00M	468.00M	495.00M	333.00M	328.00M
Total Debt	5.18B	4.09B	4.22B	2.81B	2.10B
Total Liabilities	8.23B	6.56B	6.54B	4.88B	3.60B
Stockholders Equity	3.00B	2.91B	2.65B	2.35B	2.82B
Cash Flow
Free Cash Flow	190.00M	284.00M	200.00M	205.00M	111.00M
Operating Cash Flow	549.00M	558.00M	542.00M	455.00M	333.00M
Investing Cash Flow	-1.16B	-410.00M	-1.15B	-207.00M	-280.00M
Financing Cash Flow	636.00M	-186.00M	787.00M	-241.00M	67.00M

GXO Logistics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 49.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GXO, the sentiment is Neutral. The current price of 49.78 is below the 20-day moving average (MA) of 51.16, above the 50-day MA of 46.67, and above the 200-day MA of 46.12, indicating a neutral trend. The MACD of 1.27 indicates Positive momentum. The RSI at 50.12 is Neutral, neither overbought nor oversold. The STOCH value of 49.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GXO.

GXO Logistics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GXO	74 Outperform	$5.90B	80.38	2.61%	―	23.40%	-55.55%
CHRW	70 Outperform	$12.05B	24.25	32.11%	2.54%	-0.22%	65.52%
XPO	69 Neutral	$15.84B	40.70	26.24%	―	1.94%	60.91%
EXPD	67 Neutral	$15.80B	19.15	37.70%	1.31%	24.07%	27.40%
Sector *	65 Neutral	$11.04B	15.74	4.60%	2.11%	3.27%	-26.87%
JBHT	64 Neutral	$14.21B	26.67	14.33%	1.19%	-2.24%	-5.43%
LSTR	61 Neutral	$4.82B	28.92	17.47%	2.61%	-2.10%	-22.19%

GXO Logistics Corporate Events

GXO Logistics Appoints Patrick Kelleher as New CEO

On June 19, 2025, GXO Logistics announced the appointment of Patrick Kelleher as the new CEO, effective August 19, 2025. Kelleher, with 33 years of experience in global supply chain management, previously held senior roles at DHL Supply Chain. His leadership is expected to drive GXO’s growth, leveraging his expertise in engineered solutions, automation, and contract logistics. Kelleher will be based at GXO’s headquarters in Greenwich, Connecticut, succeeding Malcolm Wilson, who is retiring.

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 Gets UK Approval for Wincanton Acquisition

On June 19, 2025, GXO Logistics announced the UK Competition and Markets Authority’s clearance of its acquisition of Wincanton, subject to divesting some grocery contracts. This acquisition is expected to enhance GXO’s offerings in the UK and Ireland, with integration commencing in the third quarter. Consequently, GXO raised its full-year 2025 guidance for organic revenue growth, adjusted EBITDA, and adjusted diluted EPS, reflecting improved volumes and productivity gains.

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 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.