Radiant Logistics (RLGT) AI Stock Analysis

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Radiant Logistics

(NYSE MKT:RLGT)

70Outperform

Radiant Logistics has demonstrated strong financial performance in the recent earnings call, with significant growth in income and strategic acquisitions. The company's robust cash flow and stable balance sheet are strengths, but challenges remain due to the declining revenue trend and market headwinds. Technically, the stock shows bearish signals, and the valuation is moderate, with no dividend yield. Overall, the stock is stable but faces challenges in maintaining growth and profitability.

Positive Factors

Financial Performance

RLGT rounded the calendar year end with a strong EBITDA beat, driven primarily by project work, inorganic growth, and pull forward.

Strategic Growth

RLGT should nonetheless stay acquisitive in calendar 2025, with a $200MM untapped credit facility.

Negative Factors

Market Challenges

The freight environment remains consistently challenged, with anticipated moderation of current tailwinds as the fiscal year progresses.

Revenue Decline

Consolidated revenue of $204 million notably missed the estimate and declined sequentially, suggesting pressured organic revenues.

Radiant Logistics (RLGT) vs. S&P 500 (SPY)

Market Cap

$272.65M

Dividend YieldN/A

Average Volume (3M)219.22K

Price to Earnings (P/E)20.4

Beta (1Y)1.10

Revenue Growth-3.33%

EPS Growth29.48%

CountryUS

Employees909

SectorIndustrials

Sector Strength69

IndustryIntegrated Freight & Logistics

Share Statistics

EPS (TTM)0.28

Shares Outstanding47,008,522

10 Day Avg. Volume319,171

30 Day Avg. Volume219,219

Financial Highlights & Ratios

PEG Ratio0.69

Price to Book (P/B)N/A

Price to Sales (P/S)0.34

Price to Cash Flow (P/CF)4.60

P/FCF Ratio4.60

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$9.50

Price Target Upside63.79% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Radiant Logistics Business Overview & Revenue Model

Company DescriptionRadiant Logistics, Inc. (RLGT) is a third-party logistics and multimodal transportation services company. Headquartered in Bellevue, Washington, Radiant Logistics operates across North America and internationally, providing comprehensive transportation and logistics solutions, including domestic and international air and ocean freight forwarding, truckload brokerage, and supply chain management services. The company serves a diverse range of industries, including manufacturing, retail, and technology, with a focus on delivering customized and flexible logistics solutions to meet the unique needs of its clients.

How the Company Makes MoneyRadiant Logistics generates revenue primarily through its diverse logistics and transportation service offerings. The company operates under a non-asset-based business model, leveraging a network of independent carriers and logistics partners to provide cost-effective and flexible transportation solutions. Key revenue streams include freight forwarding services, where Radiant acts as an intermediary between shippers and carriers for both domestic and international shipments, and supply chain management services, which involve managing and optimizing clients' logistics operations. Additionally, the company benefits from strategic partnerships and alliances within the logistics industry, enhancing its service capabilities and expanding its market reach. Radiant's ability to offer tailored logistics solutions and maintain strong relationships with a broad carrier base is critical to its revenue generation and competitive positioning in the logistics sector.

Radiant Logistics Financial Statement Overview

Summary

Radiant Logistics shows strengths in cash flow management and a solid balance sheet with manageable leverage. However, the declining revenue trend and modest profitability margins indicate challenges in maintaining growth and improving operational efficiency. The company appears stable but may need strategic initiatives to enhance profitability and sustain revenue growth.

Income Statement

Positive

The income statement shows a declining revenue trend with a significant drop from 2022 to the TTM (Trailing-Twelve-Months) period. Gross profit margin is relatively strong at 42.88% for TTM, indicating efficient cost management. However, the net profit margin is modest at 1.62% for TTM, highlighting pressure on overall profitability. The EBIT and EBITDA margins are also low, suggesting limited operational efficiency improvements.

Balance Sheet

Positive

The balance sheet reflects a stable equity position with an equity ratio of 55.45% in TTM, suggesting a strong asset base relative to liabilities. The debt-to-equity ratio is relatively conservative at 0.31, indicating manageable leverage levels. However, return on equity is low at 6.49% in TTM, indicating limited returns for shareholders.

Cash Flow

Positive

The cash flow statement illustrates strong cash generation capabilities, with a significant increase in free cash flow in TTM. The free cash flow to net income ratio is healthy, and operating cash flow is robust, reflecting efficient cash operations. However, fluctuations in capital expenditures and financing cash flows suggest some variability in cash management strategies.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
858.70M	802.47M	1.09B	1.46B	889.12M	855.20M
	Gross Profit
368.15M	140.22M	181.63M	215.33M	148.81M	134.62M
	EBIT
16.63M	9.30M	28.12M	40.89M	14.41M	3.11M
	EBITDA
37.40M	28.87M	50.17M	78.11M	47.20M	36.33M
	Net Income Common Stockholders
13.92M	7.68M	20.59M	44.46M	23.11M	10.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.91M	24.87M	32.46M	24.44M	13.70M	34.84M
	Total Assets
386.76M	371.19M	393.74M	497.35M	357.24M	300.04M
	Total Debt
66.78M	57.98M	69.24M	118.51M	72.89M	68.37M
	Net Debt
46.87M	33.10M	36.78M	94.07M	59.19M	33.53M
	Total Liabilities
172.21M	161.68M	188.65M	302.79M	195.84M	161.87M
	Stockholders Equity
214.45M	209.36M	204.87M	194.38M	161.11M	137.37M
Cash Flow		Free Cash Flow
13.88M	8.66M	90.33M	17.41M	2.67M	24.70M
	Operating Cash Flow
21.06M	17.25M	97.89M	24.88M	14.10M	29.88M
	Investing Cash Flow
-29.63M	-15.16M	-10.71M	-45.68M	-11.07M	-14.14M
	Financing Cash Flow
-4.80M	-10.18M	-80.21M	28.93M	-23.75M	12.29M

Radiant Logistics Technical Analysis

Technical Analysis Sentiment

Negative

Last Price5.80

Price Trends

50DMA

6.57

Negative

100DMA

6.78

Negative

200DMA

6.53

Negative

Market Momentum

MACD

-0.22

Positive

RSI

39.97

Neutral

STOCH

46.82

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RLGT, the sentiment is Negative. The current price of 5.8 is below the 20-day moving average (MA) of 6.08, below the 50-day MA of 6.57, and below the 200-day MA of 6.53, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 39.97 is Neutral, neither overbought nor oversold. The STOCH value of 46.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RLGT.

Radiant Logistics Risk Analysis

Radiant Logistics disclosed 50 risk factors in its most recent earnings report. Radiant Logistics 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

Radiant Logistics Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPD	75 Outperform	$15.17B	19.27	35.12%	1.32%	13.98%	14.29%
RLGT	70 Outperform	$272.65M	20.36	6.61%	―	-3.33%	29.48%
CHRW	68 Neutral	$10.79B	23.65	29.65%	2.71%	0.73%	41.65%
JBHT	65 Neutral	$13.29B	23.92	14.06%	1.30%	-5.79%	-20.32%
HUBG	63 Neutral	$2.04B	19.53	6.34%	1.50%	-6.10%	-34.78%
Sector *	62 Neutral	$7.62B	13.01	3.19%	3.32%	3.77%	-14.28%
FWRD	44 Neutral	$411.05M	―	-167.82%	0.86%	56.49%	-7872.87%

* Industrials Sector Average

Performance Comparison

RLGT

Radiant Logistics

5.80

0.73

14.40%

CHRW

CH Robinson

91.26

23.97

35.62%

EXPD

Expeditors International

110.15

-5.16

-4.47%

FWRD

Forward Air

13.52

-11.00

-44.86%

HUBG

Hub Group

33.24

-6.94

-17.27%

JBHT

JB Hunt

137.82

-45.44

-24.80%

Radiant Logistics Earnings Call Summary

Earnings Call Date: Feb 10, 2025 | % Change Since: -17.73% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Positive

Radiant Logistics demonstrated strong financial performance with substantial growth in net income and adjusted EBITDA. The company made strategic acquisitions to enhance its market presence and maintains a robust financial position. However, it faces challenges from market headwinds and tariffs, which could impact near-term results. Despite these challenges, the company's overall outlook remains optimistic.

Highlights

Significant Increase in Adjusted EBITDA

Radiant Logistics reported $12 million in adjusted EBITDA for the second fiscal quarter, an increase of approximately 55.9% compared to $7.708 million in the same quarter of the previous year.

Record Net Income Growth

The company reported net income of $6.467 million, representing a 556.5% increase from the $985,000 reported for the same period in the previous year.

Strategic Acquisitions

Radiant Logistics acquired Texas-based Foundation Logistics, Michigan-based Focus Logistics, and TCB Transportation in St. Louis, Missouri, enhancing its service offering and market presence.

Strong Financial Position

Radiant Logistics maintains a strong balance sheet with $20 million in cash, no significant debt, and an untapped $200 million credit facility.

Lowlights

Market Headwinds and Tariff Challenges

The company anticipates challenges due to market headwinds and recently introduced tariffs with China, Mexico, and Canada, potentially impacting near-term results.

Slowest Seasonal Quarter Ahead

The upcoming quarter ending March 31 is expected to be the slowest seasonal quarter, which could affect the company's financial performance.

Company Guidance

In the recent financial call, Radiant Logistics provided guidance for the second fiscal quarter ended December 31, 2024, highlighting several key metrics. The company reported a net income attributable to Radiant Logistics of $6.467 million on revenues of $264.5 million, marking a significant increase of approximately $5.482 million or 556.5% compared to the previous year. Adjusted net income for the quarter was $10.695 million, a 94.6% increase from the prior year, while adjusted EBITDA reached $12.016 million, representing a 55.9% rise. For the six-month period, net income stood at $9.843 million on revenues of $468.1 million, a 172.9% growth from the previous year. The company maintained a strong balance sheet with $20 million in cash and no significant debt, alongside an available $200 million credit facility. Despite these positive results, driven in part by projects like chartering flights for IV fluid imports due to hurricane-induced shortages, the company anticipates challenges ahead due to market headwinds and recent tariffs. Radiant Logistics continues to focus on strategic acquisitions and organic growth, evidenced by recent acquisitions such as Foundation Logistics and TCB Transportation, aiming to deliver long-term value to shareholders and partners.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.