QXO Inc (QXO)
NYSE:QXO
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QXO Inc
(NYSE:QXO)
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Rating:54Neutral
Price Target:
$20.50
▲(0.20% Upside)
Action:ReiteratedDate:02/27/26
The score is held back primarily by weak and volatile profitability (net loss, negative EBITDA margin, and sharp gross margin compression) despite strong recent revenue growth and a conservatively levered balance sheet with positive operating/free cash flow. Technicals are broadly neutral-to-mixed, while valuation is unfavorable due to negative earnings. Corporate actions support an acquisition-led growth strategy but add execution and potential dilution/complexity risk.
Positive Factors
Strong Revenue Scale
A near-50% revenue step-up in 2025 indicates the business has achieved meaningful scale, improving strategic leverage over suppliers and customers. Sustained top-line expansion supports network optimization, bargaining power and potential fixed-cost absorption that can drive durable profitability if margins recover.
Negative Factors
Negative Profitability
The company is not yet converting scale into operating profitability; sustained net losses and negative EBITDA signal that revenue growth alone hasn't produced acceptable returns. Long-term value depends on restoring margins and earnings, otherwise capital deployment and shareholder returns remain at risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Scale
A near-50% revenue step-up in 2025 indicates the business has achieved meaningful scale, improving strategic leverage over suppliers and customers. Sustained top-line expansion supports network optimization, bargaining power and potential fixed-cost absorption that can drive durable profitability if margins recover.
Read all positive factors
QXO Inc (QXO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.50B
Dividend YieldN/A
Average Volume (3M)6.99M
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth8103.75%
EPS Growth-567.07%
CountryUS
Employees211
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.02
Shares Outstanding708,551,200
10 Day Avg. Volume7,621,442
30 Day Avg. Volume6,992,064
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.01
Price to Sales (P/S)0.02
P/FCF Ratio0.65
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue2.43
Enterprise Value/Gross Profit10.59
Enterprise Value/Ebitda142.98
Forecast
1Y Price Target
$33.71Price Target Upside64.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.37
Revenue Forecast (FY)$11.73B
QXO Inc Business Overview & Revenue Model
Company Description
QXO, Inc. distributes roofing, waterproofing, and other building products in the United States. It offers asphalt, metal roofing, wood roofing, tile roofing, slate roofing, roofing accessories, and roofing insulation products; vinyl siding, alumin...
How the Company Makes Money
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QXO Inc Earnings Call Summary
Earnings Call Date:Mar 04, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted Beacon's strong fourth quarter performance and strategic initiatives leading to record results. However, the company faced notable challenges, including weather-related sales impacts and market headwinds. While Beacon has plans to sustain growth and manage costs, the uncertain market conditions present ongoing risks.Positive Updates
Record Fourth Quarter Results
Beacon set fourth quarter records for net sales, adjusted EBITDA, and cash flow. Sales per day increased approximately 3% year-over-year to $2.4 billion, driven by recent acquisitions.
Negative Updates
Weather-Related Sales Impact
A slowdown in sales during November and December impacted residential roofing, particularly in North and West regions, resulting in fourth quarter sales per day being less than expected.
Read all updates
Q4-2024 Updates
Positive
Negative
Record Fourth Quarter Results
Beacon set fourth quarter records for net sales, adjusted EBITDA, and cash flow. Sales per day increased approximately 3% year-over-year to $2.4 billion, driven by recent acquisitions.
Read all positive updates
Company Guidance
In the fourth quarter of fiscal year 2024, Beacon achieved record net sales of $2.4 billion, representing a year-over-year increase of approximately 3% driven by acquisitions. The company's adjusted EBITDA reached $223 million, supported by an increase in average selling prices and a strategic focus on operating efficiency. Beacon also generated nearly $360 million in cash flow, facilitating investments in growth initiatives like greenfield locations and acquisitions. Gross margin remained strong at 25.7%, with adjusted operating expenses totaling $434 million, marking a 20 basis point increase to 18% of sales. The company's bottom quintile branch initiative added more than $7 million in EBITDA year-over-year, while digital sales grew by 20%, reaching 16% of total sales. Additionally, the private label TRI-BUILT brand saw a 7% sales increase. Beacon's strategic focus on operational excellence and shareholder value was evident in its continued share repurchase program, retiring over 2.4 million shares throughout the year.QXO Inc Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.84B | 56.87M | 54.52M | 44.99M | 41.70M |
| Gross Profit | 1.57B | 22.93M | 21.61M | 17.96M | 17.21M |
| EBITDA | 133.70M | 51.99M | -290.00K | 1.37M | 1.49M |
| Net Income | -279.40M | 27.97M | -1.07M | -282.22K | -134.43K |
Balance Sheet | |||||
| Total Assets | 15.89B | 5.10B | 20.50M | 21.44M | 18.00M |
| Cash, Cash Equivalents and Short-Term Investments | 2.36B | 5.07B | 6.14M | 8.01M | 6.81M |
| Total Debt | 4.48B | 577.00K | 2.62M | 2.40M | 2.29M |
| Total Liabilities | 6.18B | 45.36M | 13.02M | 11.89M | 8.64M |
| Stockholders Equity | 9.71B | 5.05B | 7.47M | 9.55M | 9.36M |
Cash Flow | |||||
| Free Cash Flow | 183.20M | 84.78M | 463.00K | 2.00M | 111.27K |
| Operating Cash Flow | 261.40M | 84.88M | 584.00K | 2.04M | 226.03K |
| Investing Cash Flow | -10.63B | -102.00K | -400.00K | -188.74K | -510.46K |
| Financing Cash Flow | 7.66B | 4.98B | -2.05M | -655.13K | 503.13K |
QXO Inc Technical Analysis
Negative
20.46
Price Trends
23.09
Negative
21.46
Negative
20.95
Negative
Market Momentum
-0.98
Positive
43.50
Neutral
62.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QXO, the sentiment is Negative. The current price of 20.46 is below the 20-day moving average (MA) of 21.31, below the 50-day MA of 23.09, and below the 200-day MA of 20.95, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 43.50 is Neutral, neither overbought nor oversold. The STOCH value of 62.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QXO.
QXO Inc Risk Analysis
QXO Inc disclosed 33 risk factors in its most recent earnings report. QXO Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
QXO Inc Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $7.81B | 47.65 | 76.65% | ― | 4.10% | -0.21% | |
73 Outperform | $9.00B | 34.08 | 15.65% | ― | 8.45% | -69.85% | |
72 Outperform | $10.87B | 81.46 | 6.81% | ― | 18.50% | 207.45% | |
70 Outperform | $10.63B | 51.21 | 23.93% | 0.72% | 11.12% | -26.24% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $14.50B | -0.33 | -3.24% | ― | 8103.75% | -567.07% | |
54 Neutral | $7.71B | ― | -12.57% | ― | -8.23% | 48.57% |
* Industrials Sector Average
QXO
QXO Inc
20.46
6.90
50.88%
MANH
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130.53
-45.09
-25.67%
DOCU
DocuSign
46.30
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-46.73%
DT
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36.45
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U
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17.80
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BSY
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35.09
-6.83
-16.29%
QXO Inc Corporate Events
Executive/Board Changes
QXO Names Interim Chief Accounting Officer After Resignation
Neutral
Mar 17, 2026
On March 15, 2026, QXO, Inc. Chief Accounting Officer Sean Smith resigned effective the same day to pursue employment closer to his family home, while agreeing to remain in an advisory role through June 30, 2026 to support an orderly transition, w...
Business Operations and StrategyM&A Transactions
QXO to Acquire Kodiak, Expanding Building Products Reach
Positive
Feb 11, 2026
On February 10, 2026, QXO Inc. agreed to acquire Kodiak Building Partners for approximately $2.25 billion, in a deal structured as a merger that will make Kodiak an indirect, wholly owned subsidiary. The consideration consists of $2.0 billion in c...
Business Operations and StrategyPrivate Placements and Financing
QXO Inc Announces Major Common Stock Offering
Positive
Jan 20, 2026
On January 15, 2026, QXO Inc. entered into an underwriting agreement with BofA Securities to sell 31,645,570 shares of common stock at a public offering price of $23.80 per share, with an additional option for the underwriter to purchase up to 4,7...
Business Operations and StrategyPrivate Placements and Financing
QXO Inc Announces $750 Million Public Equity Offering
Positive
Jan 15, 2026
On January 15, 2026, QXO Inc. announced plans to offer $750 million of its common stock to the public, with an additional option for the underwriter, BofA Securities, to purchase up to $112.5 million more at the public offering price, less underwr...
Financial DisclosuresM&A TransactionsRegulatory Filings and Compliance
QXO Inc Announces Preliminary Fourth-Quarter 2025 Financial Results
Neutral
Jan 15, 2026
On April 29, 2025, QXO completed its acquisition of QXO Building Products, Inc., formerly known as Beacon Roofing Supply, Inc., and has now filed unaudited pro forma combined financial information to illustrate how the merged businesses would have...
Business Operations and StrategyPrivate Placements and Financing
QXO Inc Upsizes Convertible Preferred Financing to $3 Billion
Positive
Jan 12, 2026
On January 12, 2026, QXO Inc. announced it had upsized its previously disclosed convertible preferred equity financing, boosting the total committed investment to $3 billion from $1.2 billion. Under an investment agreement led by Apollo funds and ...
Business Operations and StrategyPrivate Placements and Financing
QXO Secures Major Preferred Investment for Acquisition Strategy
Positive
Jan 5, 2026
On January 5, 2026, QXO Inc. announced that funds managed by Apollo Global Management and other investors agreed to invest up to $1.2 billion in a new Series C convertible perpetual preferred stock, structured as a private placement, to finance on...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.