GXO Logistics (GXO) AI Stock Analysis

• Market Cap: $5.90B
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 97.7
• Beta (1Y): 1.09
• Revenue Growth: 22.39%
• EPS Growth: -54.71%
• Country: US
• Employees: 150,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.57
• Shares Outstanding: 114,473,280
• 10 Day Avg. Volume: 868,986
• 30 Day Avg. Volume: 1,112,084
• 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: 1.87
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 7.02
• Enterprise Value/Ebitda: 16.07
• 1Y Price Target: $61.00
• Price Target Upside: 18.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 74 Outperform
• Price Target: $59.00 ▲(14.43% Upside)

GXO's overall stock score is driven by strong financial performance and a positive earnings call outlook, despite challenges in valuation due to a high P/E ratio. The company's growth trajectory is supported by strategic initiatives and technological advancements, but profitability and leverage remain areas to watch.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and customer retention, reinforcing GXO's position in the logistics sector.

Healthcare Sector Expansion

Expansion into the healthcare sector with significant contracts enhances GXO's market diversification and long-term revenue potential.

Leadership Change

New CEO Patrick Kelleher brings extensive experience in supply chain management, expected to drive strategic growth and innovation.

Negative Factors

Profitability Challenges

Low profitability margins indicate challenges in cost management, which could hinder long-term financial performance and shareholder returns.

High Leverage

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

Regulatory Challenges

Regulatory issues in Italy could lead to financial penalties and distract management from focusing on strategic growth initiatives.

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 exhibits solid revenue growth and cash flow generation, though profitability remains a challenge with low net profit margins. The balance sheet indicates high leverage, necessitating prudent debt management. Overall, the company is on a growth trajectory but must focus on improving profitability and managing financial risks.

Income Statement

GXO Logistics has demonstrated consistent revenue growth, with a TTM revenue growth rate of 3.7%. The gross profit margin has slightly decreased over the years, currently at 12.7% TTM, indicating some pressure on cost management. The net profit margin is relatively low at 0.6% TTM, suggesting limited profitability. However, the company maintains a stable EBIT margin of 2.1% TTM, showing operational efficiency. Overall, the income statement reflects growth but with challenges in profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.85 TTM, indicating significant leverage, which could pose financial risks. The return on equity is modest at 2.5% TTM, reflecting limited returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable. Overall, the balance sheet suggests a need for careful debt management to ensure financial stability.

Cash Flow

GXO Logistics has shown positive free cash flow growth of 13.4% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.16 TTM, suggesting efficient conversion of earnings into cash. The free cash flow to net income ratio is 0.31 TTM, highlighting the company's ability to generate cash relative to its net income. Overall, the cash flow statement reflects strong cash management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.68B	11.71B	9.78B	8.99B	7.94B	6.20B
Gross Profit	1.57B	1.86B	1.38B	1.22B	968.00M	703.00M
EBITDA	688.00M	816.00M	680.00M	697.00M	589.00M	415.00M
Net Income	63.00M	134.00M	229.00M	197.00M	153.00M	-22.00M
Balance Sheet
Total Assets	11.93B	11.27B	9.51B	9.22B	7.27B	6.55B
Cash, Cash Equivalents and Short-Term Investments	205.00K	413.00M	468.00M	495.00M	333.00M	328.00M
Total Debt	5.56B	5.18B	4.09B	4.22B	2.81B	2.10B
Total Liabilities	8.95B	8.23B	6.56B	6.54B	4.88B	3.60B
Stockholders Equity	2.94B	3.00B	2.91B	2.65B	2.35B	2.82B
Cash Flow
Free Cash Flow	185.91M	190.00M	284.00M	200.00M	205.00M	111.00M
Operating Cash Flow	416.00M	549.00M	558.00M	542.00M	455.00M	333.00M
Investing Cash Flow	-266.00M	-1.16B	-410.00M	-1.15B	-207.00M	-280.00M
Financing Cash Flow	-448.00M	636.00M	-186.00M	787.00M	-241.00M	67.00M

GXO Logistics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.56
• 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 Positive. The current price of 51.56 is below the 20-day moving average (MA) of 52.42, above the 50-day MA of 51.48, and above the 200-day MA of 44.80, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 23.83 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
GXO	74 Outperform	$5.90B	97.69	2.16%	―	22.39%	-54.71%
FDX	73 Outperform	$53.99B	13.42	14.68%	2.47%	0.27%	-2.64%
EXPD	72 Outperform	$16.74B	19.80	39.01%	1.22%	23.70%	31.33%
XPO	69 Neutral	$15.83B	46.49	21.10%	―	-0.11%	-4.28%
CHRW	69 Neutral	$15.07B	29.06	32.43%	1.89%	-2.55%	59.07%
JBHT	64 Neutral	$13.26B	24.89	14.33%	1.28%	-2.24%	-5.43%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%

GXO Logistics Corporate Events

GXO Logistics CFO Departure Announced

On August 4, 2025, GXO Logistics announced that its Chief Financial Officer, Baris Oran, will depart in March 2026. Mr. Oran will continue his role until a successor is appointed, and upon his departure, he will receive severance payments and outplacement services, with his stock units subject to pro-rated vesting.

GXO Logistics Highlights Financial Performance in New Presentation

On August 5, 2025, GXO Logistics released a slide presentation intended for future investor presentations, highlighting its financial performance and strategic goals. The presentation emphasizes the company’s use of non-GAAP financial measures to provide a clearer picture of its ongoing business operations, aiming to assist investors in comparing performance across periods and assessing business trends. This release is part of GXO’s efforts to maintain transparency with stakeholders and align its financial reporting with strategic objectives, potentially impacting investor confidence and market positioning.

GXO Logistics Appoints New Board Members Amid Changes

On July 29, 2025, GXO Logistics expanded its Board of Directors from nine to ten members, appointing Patrick J. Byrne as an independent director. Byrne, with a rich background in operational transformation and digital transformation at General Electric and other companies, will serve until the 2026 annual meeting. On July 30, 2025, Jason Papastavrou resigned from the Board, and Michael Kneeland was appointed as an independent director. Kneeland, with extensive experience in the equipment rental industry and various board roles, will also serve until the 2026 annual meeting. Both directors will receive an annual cash retainer and restricted stock units for their service.

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.

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.