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QXO Inc (QXO)
NYSE:QXO
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QXO Inc
(NYSE:QXO)
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Rating:56Neutral
Price Target:
$19.00
▲(3.83% Upside)
QXO Inc.'s overall stock score is primarily impacted by its financial performance and technical analysis. Strong revenue growth is overshadowed by profitability and cash flow challenges, while technical indicators suggest bearish momentum. Valuation metrics further highlight the company's current financial struggles.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for QXO's products and services, supporting long-term business expansion and market penetration.
Stable Balance Sheet
A stable balance sheet with low leverage provides QXO with financial flexibility to invest in growth opportunities and withstand economic fluctuations.
Strategic Partnerships
Strategic partnerships enhance QXO's market position and product offerings, driving sustainable revenue growth and competitive advantage.
Negative Factors
Profitability Challenges
Ongoing profitability issues could hinder QXO's ability to reinvest in its business and deliver shareholder value over the long term.
Cash Flow Management
Negative free cash flow growth suggests potential liquidity constraints, impacting QXO's ability to fund operations and strategic initiatives.
Operational Efficiency
Improving operational efficiency is crucial for QXO to enhance profitability and sustain its competitive edge in the technology sector.
QXO Inc (QXO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.37B
Dividend YieldN/A
Average Volume (3M)8.29M
Price to Earnings (P/E)―
Beta (1Y)0.58
Revenue Growth3310.77%
EPS Growth93.28%
CountryUS
Employees211
SectorIndustrials
Sector Strength72
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.11
Shares Outstanding673,556,640
10 Day Avg. Volume7,169,809
30 Day Avg. Volume8,291,181
Financial Highlights & Ratios
PEG Ratio-2.49
Price to Book (P/B)1.28
Price to Sales (P/S)114.06
P/FCF Ratio76.52
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue7.73
Enterprise Value/Gross Profit35.96
Enterprise Value/Ebitda839.37
Forecast
1Y Price Target
$31.80Price Target Upside73.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
QXO Inc Business Overview & Revenue Model
Company DescriptionQXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.
How the Company Makes MoneyQXO generates revenue through multiple streams, including subscription fees for its cloud-based software solutions, licensing fees for its proprietary technology, and project-based income from custom software development services. The company's subscription model allows clients to pay a recurring fee for access to its software, providing a stable and predictable revenue stream. Additionally, QXO partners with key industry players to expand its reach and capabilities, leading to increased sales through joint ventures and collaborative projects. The continuous demand for digital transformation in various sectors, coupled with strategic partnerships, significantly contributes to QXO's earnings.
QXO Inc Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
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.Q4-2024 Updates
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.
Strong Cash Flow Management
Fourth quarter cash flow reached nearly $360 million, enabling investments in growth initiatives such as greenfield locations and acquisitions.
Operational Excellence and Cost Savings
The company achieved significant operational efficiencies, contributing to a 6% year-over-year increase in sales per hour worked and $30 million in expected cost savings for 2025.
Digital Sales Growth
Digital sales rose approximately 20% year-over-year, contributing to a nearly 200 basis point improvement in digital sales as a percentage of total sales.
Acquisitions and Share Buybacks
In 2024, Beacon completed 12 acquisitions, contributing over $400 million to net sales, and repurchased over 2.4 million shares, demonstrating a commitment to shareholder returns.
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.
Challenging Market Conditions
The company faced significant headwinds, including sluggish housing starts, historically low existing home sales, and lower commercial new construction.
Inventory Management Issues
Inventory management was a challenge, with year-end inventory levels increasing by $180 million due to acquisitions, greenfield load-ins, and inflation.
Expected Market Headwinds in 2025
The company anticipates continued headwinds in the first half of 2025, including higher interest rates, potential tariffs, and labor availability concerns.
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
QXO Inc. shows strong revenue growth but struggles with profitability and cash flow management. The balance sheet is stable with low leverage, but operational efficiency and cash flow generation need improvement.Income Statement
QXO Inc. has demonstrated impressive revenue growth, particularly in the TTM period, with a significant increase in total revenue. However, the company is facing challenges in profitability, as indicated by negative EBIT and net income margins. The gross profit margin is stable, suggesting effective cost management at the gross level, but the company needs to improve operational efficiency to enhance overall profitability.75
Positive
Balance Sheet
The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. However, the return on equity is low, reflecting challenges in generating profits from shareholders' equity. The equity ratio is healthy, suggesting a solid capital structure, but the company needs to focus on improving profitability to enhance shareholder returns.65
Positive
Cash Flow
Cash flow analysis reveals a concerning trend with negative free cash flow growth in the TTM period. The operating cash flow to net income ratio is positive, indicating some level of cash generation from operations, but the free cash flow to net income ratio suggests cash flow challenges. The company needs to focus on improving cash flow management to support growth and operational needs.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.95B | 56.87M | 54.52M | 44.99M | 41.70M | 41.22M |
| Gross Profit | 418.57M | 22.93M | 20.79M | 17.01M | 16.33M | 15.87M |
| EBITDA | 17.93M | 51.99M | -185.11K | 1.37M | 1.16M | 1.36M |
| Net Income | -21.32M | 27.97M | -1.07M | -282.22K | -134.43K | 175.65K |
Balance Sheet | ||||||
| Total Assets | 17.11B | 5.10B | 20.50M | 21.44M | 18.00M | 15.90M |
| Cash, Cash Equivalents and Short-Term Investments | 2.28B | 5.07B | 6.14M | 8.01M | 6.81M | 6.60M |
| Total Debt | 4.12B | 577.00K | 2.62M | 2.40M | 2.29M | 3.04M |
| Total Liabilities | 7.20B | 45.36M | 13.02M | 11.89M | 8.64M | 8.62M |
| Stockholders Equity | 9.92B | 5.05B | 7.47M | 9.55M | 9.36M | 7.28M |
Cash Flow | ||||||
| Free Cash Flow | -71.87M | 84.78M | 462.88K | 2.00M | 111.27K | 1.60M |
| Operating Cash Flow | -52.13M | 84.88M | 583.80K | 2.04M | 226.03K | 1.73M |
| Investing Cash Flow | -10.58B | -102.00K | -399.42K | -188.74K | -510.46K | 839.81K |
| Financing Cash Flow | 11.94B | 4.98B | -2.05M | -655.13K | 503.13K | -4.63M |
QXO Inc Technical Analysis
Negative
18.30
Price Trends
20.05
Negative
20.42
Negative
17.19
Positive
Market Momentum
-0.38
Positive
39.86
Neutral
30.99
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 18.3 is below the 20-day moving average (MA) of 19.18, below the 50-day MA of 20.05, and above the 200-day MA of 17.19, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 39.86 is Neutral, neither overbought nor oversold. The STOCH value of 30.99 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 50 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.94B | 30.73 | 20.69% | ― | 18.70% | 214.47% | |
73 Outperform | $12.38B | 55.28 | 73.58% | ― | 4.10% | -0.21% | |
69 Neutral | $14.19B | 53.62 | 14.23% | ― | 8.29% | -71.36% | |
65 Neutral | $15.86B | 66.76 | 23.69% | 0.52% | 10.45% | -32.43% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $12.37B | ― | -0.39% | ― | 3310.77% | 93.28% | |
53 Neutral | $15.33B | ― | -13.62% | ― | -13.74% | 48.10% |
* Industrials Sector Average
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QXO Inc Corporate Events
Business Operations and StrategyM&A Transactions
QXO Inc Unveils Transformation Program Post-Beacon Acquisition
Positive
Sep 11, 2025
On September 11, 2025, QXO Inc. released a transcript from recent investor meetings, highlighting its comprehensive transformation program following the acquisition of Beacon. The company has implemented various initiatives, including rebranding, organizational restructuring, and technology upgrades, to improve decision-making, sales, and procurement processes. These changes aim to enhance QXO’s market positioning and operational efficiency, with a focus on increasing revenue and capturing market share. The company is also addressing inventory management and salesforce effectiveness to drive growth, despite challenges in the housing market.
The most recent analyst rating on (QXO) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on QXO Inc stock, see the QXO Stock Forecast page.
QXO, Inc. Reports Q2 2025 Results and Strategic Growth
Aug 15, 2025
QXO, Inc. is the largest publicly traded distributor of roofing, waterproofing, and complementary building products in North America, aiming to become a tech-enabled leader in the building products distribution industry.
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.