RXO, Inc. (RXO) AI Stock Analysis

• Market Cap: $2.40B
• Dividend Yield: N/A
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• Revenue Growth: 53.85%
• EPS Growth: 77.68%
• Country: US
• Employees: 7,540
• Sector: Industrials
• Sector Strength: 72
• Industry: Trucking
• EPS (TTM): 0.01
• Shares Outstanding: 164,111,880
• 10 Day Avg. Volume: 1,918,623
• 30 Day Avg. Volume: 2,072,371
• PEG Ratio: <0.01
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -55.80
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 26.69
• 1Y Price Target: $15.36
• Price Target Upside: 4.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $12.00 ▼(-18.03% Downside)

RXO, Inc. faces significant challenges, primarily driven by weak financial performance and bearish technical indicators. The company's negative profitability and cash flow issues are major concerns, compounded by a negative P/E ratio. While there are positive aspects such as growth in LTL volume and strategic investments, these are currently overshadowed by broader market and operational challenges.

Positive Factors

LTL Volume Growth

Strong LTL volume growth indicates robust demand in this segment, showcasing RXO's ability to capture market share and drive revenue in a challenging environment.

Cost Structure Improvements

Significant cost reductions enhance RXO's operational efficiency, potentially improving margins and profitability over the long term, even amid market challenges.

Technology Investments

Continued investment in technology, including AI and machine learning, positions RXO to enhance service quality and operational efficiencies, supporting long-term competitive advantage.

Negative Factors

Decline in Truckload Volume

A decline in truckload volume reflects demand weakness and sector-specific challenges, potentially affecting revenue and market position in the near to medium term.

EBITDA Below Expectations

EBITDA falling below expectations indicates ongoing profitability challenges, which could strain financial performance and investor confidence if not addressed.

Margin Squeeze

Decreased margins due to rising costs without corresponding revenue increases suggest pressure on profitability, necessitating strategic adjustments to maintain financial health.

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 generates revenue primarily through its freight brokerage services, which connect shippers with carriers to facilitate the transportation of goods. The company earns money by charging a service fee or commission on each shipment, which is typically a percentage of the total freight cost. Additionally, RXO may generate revenue from value-added services such as warehousing, inventory management, and supply chain consulting. Key partnerships with carriers and technology providers enhance its service offerings and operational efficiency, further contributing to its earnings. The company also capitalizes on market demand by utilizing its extensive network to optimize shipping routes and freight capacity, thereby maximizing profitability.

RXO, Inc. Financial Statement Overview

Summary

RXO, Inc. faces profitability and cash flow challenges despite some revenue growth. The company shows moderate leverage and a reasonable equity position, but negative returns on equity and cash flow issues highlight areas for improvement. Continued focus on operational efficiency and cash flow management will be crucial for future stability and growth.

Income Statement

RXO, Inc. shows a mixed performance in its income statement. The TTM data indicates a slight improvement in gross profit margin at 15.44%, but the company is struggling with profitability, as evidenced by a negative net profit margin of -1.44% and EBIT margin of -1.26%. Revenue growth is positive at 6.85% TTM, suggesting some top-line growth. However, the negative EBITDA margin of 0.84% TTM highlights ongoing operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio has improved to 0.43 TTM, indicating a manageable level of leverage. However, the return on equity is negative at -5.43% TTM, pointing to inefficiencies in generating returns for shareholders. The equity ratio stands at 49.37%, suggesting a reasonable proportion of equity financing.

Cash Flow

Cash flow analysis reveals significant challenges. The free cash flow growth rate is negative at -60% TTM, indicating declining cash generation. The operating cash flow to net income ratio is negative, reflecting cash flow issues relative to earnings. However, the free cash flow to net income ratio is positive at 5.75, suggesting some ability to convert earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.94B	4.55B	3.93B	4.80B	4.69B	3.36B
Gross Profit	982.00M	783.00M	725.00M	860.00M	735.00M	539.00M
EBITDA	124.00M	117.00M	134.00M	209.00M	272.00M	133.00M
Net Income	-79.00M	-290.00M	4.00M	92.00M	150.00M	43.00M
Balance Sheet
Total Assets	3.20B	3.41B	1.82B	2.03B	2.07B	1.87B
Cash, Cash Equivalents and Short-Term Investments	25.00M	35.00M	5.00M	98.00M	29.00M	70.00M
Total Debt	682.00M	664.00M	558.00M	617.00M	135.00M	116.00M
Total Liabilities	1.62B	1.80B	1.23B	1.44B	998.00M	802.00M
Stockholders Equity	1.58B	1.61B	594.00M	587.00M	1.07B	1.07B
Cash Flow
Free Cash Flow	-18.00M	-57.00M	25.00M	253.00M	116.00M	-22.00M
Operating Cash Flow	37.00M	-12.00M	89.00M	310.00M	155.00M	25.00M
Investing Cash Flow	-68.00M	-1.06B	-66.00M	-56.00M	-38.00M	-39.00M
Financing Cash Flow	2.00M	1.11B	-117.00M	-183.00M	-158.00M	32.00M

RXO, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RXO, the sentiment is Neutral. The current price of 14.64 is above the 20-day moving average (MA) of 13.25, below the 50-day MA of 15.01, and below the 200-day MA of 15.86, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 57.56 is Neutral, neither overbought nor oversold. The STOCH value of 75.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RXO.

RXO, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WERN	67 Neutral	$1.82B	74.78	1.78%	1.83%	-3.42%	-43.86%
ARCB	66 Neutral	$1.78B	18.77	7.40%	0.61%	-5.34%	-48.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SNDR	59 Neutral	$4.69B	41.26	3.81%	1.40%	5.46%	2.31%
MRTN	58 Neutral	$948.08M	48.91	2.53%	2.05%	-9.74%	-42.57%
ULH	52 Neutral	$425.76M	-10.57	-6.66%	2.60%	-7.55%	-130.67%
RXO	44 Neutral	$2.40B	-33.08	-4.58%	―	53.85%	77.68%

RXO, Inc. Corporate Events

RXO, Inc. Reports Q3 2025 Financial Results

On November 6, 2025, RXO reported its financial results for the third quarter of 2025, revealing a revenue increase to $1.4 billion from $1.0 billion in the previous year, despite a GAAP net loss of $14 million. The company experienced a tightening in the full-truckload market due to capacity exits, affecting its brokerage gross margin. RXO’s strategic decisions and cost initiatives are expected to yield over $30 million in savings, positioning the company for long-term growth despite current market challenges.