RXO, Inc. (RXO) AI Stock Analysis

• Market Cap: $2.65B
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: 32.38%
• EPS Growth: -2221.75%
• Country: US
• Employees: 7,540
• Sector: Industrials
• Sector Strength: 89
• Industry: Trucking
• EPS (TTM): -0.03
• Shares Outstanding: 163,916,120
• 10 Day Avg. Volume: 1,541,267
• 30 Day Avg. Volume: 1,721,503
• PEG Ratio: 3.86
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -53.23
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 5.49
• Enterprise Value/Ebitda: 20.56
• 1Y Price Target: $15.90
• Price Target Upside: -1.55% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 50 Neutral
• Price Target: $16.00 ▼(-0.93%Downside)

RXO is facing significant financial challenges with declining revenues and profitability issues, heavily influencing its overall score. Technical indicators and valuation also reflect caution. While the earnings call highlighted some positive strategic initiatives, the overall financial health remains a primary concern, impacting the stock's attractiveness.

Positive Factors

Cost Synergies

RXO expects significant operating expense synergies from Coyote, with $60 million anticipated, contributing to cost savings.

Diversification

RXO offers Truck Brokerage and Complementary Services, making it a diversified player in the logistics market.

Market Conditions

Supply and demand dynamics are showing improvement with capacity reductions, indicating a potential positive shift in market conditions.

Negative Factors

Demand Challenges

RXO believes that demand is now the problem given that volume is below 2019 levels.

Earnings Performance

RXO's 1Q was a sizeable miss and while 2Q was a relative step up, it likely falls short of expectations as well.

Freight Outlook

The freight outlook remains uncertain, creating potential challenges for RXO’s growth and profitability.

RXO, Inc. Business Overview & Revenue Model

Company Description

RXO provides truckload freight transportation brokerage in the United States. The company, through a proprietary digital freight marketplace, offers access to truckload capacity and complementary brokered services of managed transportation, last mile, and freight forwarding. The company is based in Charlotte, North Carolina.

How the Company Makes Money

RXO, Inc. generates revenue primarily through its freight brokerage services. The company earns money by acting as an intermediary between shippers who need to transport goods and carriers who have the capacity to move those goods. RXO charges a fee for matching these parties and managing the logistics of transportation. This fee is typically a percentage of the total shipping cost. Additionally, RXO may have partnerships with large shippers or carriers, allowing them to negotiate favorable rates and increase their profit margins. The company also invests in technology to enhance operational efficiency, which can contribute to cost savings and increased revenue.

RXO, Inc. Financial Statement Overview

Summary

RXO's financial performance is challenged by declining revenues, negative profitability, and cash flow issues. Despite a moderate leverage position, persistent losses and cash flow difficulties hinder financial stability.

Income Statement

RXO's income statement reveals significant challenges with profitability. The company has faced declining revenue with a recent TTM decline of 5.4% compared to the previous year. The net profit margin has turned negative in the TTM with -6.03%, indicating substantial net losses. While the gross profit margin remains relatively healthy at 15.8%, the negative EBIT margin of -1.28% signals operational difficulties. The EBITDA margin has slightly improved in the TTM at 0.72%, yet still shows weak profitability.

Balance Sheet

The balance sheet shows a mixed picture. RXO's debt-to-equity ratio in the TTM is 0.43, suggesting moderate leverage. However, the equity ratio at 48.0% suggests a fair proportion of equity financing. Return on equity is negative due to net losses, highlighting profitability issues. The company maintains a reasonable liquidity position with cash and equivalents, but declining equity and increasing liabilities pose risks.

Cash Flow

Cash flow analysis indicates significant challenges. The operating cash flow to net income ratio is negative due to both negative operating cash flow and net income, reflecting cash flow pressures. The free cash flow has deteriorated further in the TTM, highlighting capital expenditure and investment burdens. Overall, cash flow metrics underscore the need for better cash management and operational improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.07B	4.55B	3.93B	4.80B	4.69B	3.36B
Gross Profit	801.00M	696.00M	658.00M	1.17B	1.01B	789.00M
EBITDA	36.57M	-187.00M	103.00M	209.00M	277.00M	160.00M
Net Income	-306.00M	-290.00M	4.00M	92.00M	150.00M	43.00M
Balance Sheet
Total Assets	3.30B	3.41B	1.82B	2.04B	2.07B	1.87B
Cash, Cash Equivalents and Short-Term Investments	16.00M	35.00M	5.00M	98.00M	29.00M	70.00M
Total Debt	685.00M	664.00M	558.00M	617.00M	135.00M	116.00M
Total Liabilities	1.72B	1.80B	1.23B	1.45B	998.00M	802.00M
Stockholders Equity	1.59B	1.61B	594.00M	589.00M	1.07B	1.07B
Cash Flow
Free Cash Flow	-70.00M	-57.00M	25.00M	253.00M	116.00M	-22.00M
Operating Cash Flow	-21.00M	-12.00M	89.00M	310.00M	155.00M	25.00M
Investing Cash Flow	-1.08B	-1.06B	-66.00M	-56.00M	-38.00M	-39.00M
Financing Cash Flow	1.11B	1.11B	-117.00M	-183.00M	-158.00M	32.00M

RXO, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.15
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RXO, the sentiment is Negative. The current price of 16.15 is below the 20-day moving average (MA) of 16.28, above the 50-day MA of 15.92, and below the 200-day MA of 21.53, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 48.65 is Neutral, neither overbought nor oversold. The STOCH value of 21.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RXO.

RXO, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCB	69 Neutral	$1.82B	10.47	14.25%	0.60%	-5.69%	51.78%
SNDR	66 Neutral	$4.40B	35.43	4.20%	1.51%	-0.30%	-20.76%
WERN	59 Neutral	$1.72B	97.96	1.21%	2.01%	-7.66%	-78.26%
MRTN	58 Neutral	$1.07B	51.17	2.72%	1.83%	-11.77%	-52.06%
Sector *	58 Neutral	HK$14.16B	4.53	-3.01%	6.82%	3.67%	-54.16%
HTLD	53 Neutral	$710.91M	―	-3.44%	0.88%	-13.10%	-121.50%
RXO	50 Neutral	$2.65B	―	-27.75%	―	32.38%	-2221.75%

RXO, Inc. Corporate Events

RXO, Inc. Holds 2025 Annual Stockholders Meeting

RXO, Inc. held its 2025 Annual Meeting of Stockholders on May 21, 2025, where key decisions were made regarding the company’s governance and financial oversight. During the meeting, stockholders elected Class II and III directors for terms expiring in 2026, ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved an advisory resolution on executive compensation.

The most recent analyst rating on (RXO) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on RXO, Inc. stock, see the RXO Stock Forecast page.

RXO Reports Q1 2025 Financial Results Amid Integration

On May 7, 2025, RXO announced its first-quarter financial results, highlighting the successful integration of Coyote coverage operations into the RXO Connect platform. This integration is expected to yield over $70 million in cash synergies, enhancing the company’s operational efficiency. The company reported a 26% year-over-year increase in less-than-truckload brokerage volume and a 24% growth in Last Mile stops. Despite these operational successes, RXO reported a first-quarter GAAP net loss of $31 million, influenced by transaction and integration costs. The company’s revenue for the quarter was $1.4 billion, up from $913 million in the same period last year.