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QXO Inc
(NYSE:QXO)
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Rating:48Neutral
Price Target:
$13.50
â–¼(-2.53% Downside)
Action:Reiterated
Date:08/25/26
The score is held down primarily by ongoing losses and negative returns despite strong revenue growth and improving gross margins, with weakening free cash flow trends adding pressure. Technicals also weigh on the outlook as the stock trades below major moving averages with negative momentum. Corporate events are a modest positive due to strategic M&A progress and leadership strengthening, but they do not overcome current profitability and trend concerns.
Positive Factors
Revenue Growth and Gross Margin
Strong sales growth combined with improved gross margin indicates expanding scale and better pricing, mix, or integration benefits. Sustaining these gains could provide the operating foundation needed to convert QXO’s enlarged distribution platform into durable earnings.
Negative Factors
Persistent Operating Losses
Revenue growth has not yet translated into sustainable bottom-line profitability, and widening losses weaken confidence in the business model’s current economics. Continued losses could constrain reinvestment capacity and make acquisition-led expansion harder to validate.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Gross Margin
Strong sales growth combined with improved gross margin indicates expanding scale and better pricing, mix, or integration benefits. Sustaining these gains could provide the operating foundation needed to convert QXO’s enlarged distribution platform into durable earnings.
Read all positive factors
QXO Inc (QXO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.85B
Dividend Yield21.3%
Average Volume (3M)16.24M
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth408.19%
EPS Growth-307.71%
CountryUS
Employees7,794
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)-0.83
Shares Outstanding1,037,490,700
10 Day Avg. Volume11,813,559
30 Day Avg. Volume16,238,069
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)1.22
Price to Sales (P/S)1.73
P/FCF Ratio64.55
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$29.43Price Target Upside112.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.27
Revenue Forecast (FY)$14.23B
QXO Inc Business Overview & Revenue Model
Company Description
QXO, Inc. is a publicly traded distributor of roofing, waterproofing and complementary building products in the United States. It plans to become tech-enabled in the building products distribution industry and generate outsized value for sharehold...
QXO Inc Earnings Call Summary
Earnings Call Date:Mar 04, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Nov 17, 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
34
Negative
Balance Sheet
62
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.90B | 6.84B | 56.87M | 54.52M | 44.99M | 41.70M |
| Gross Profit | 1.90B | 1.15B | 22.93M | 21.61M | 17.96M | 17.21M |
| EBITDA | 387.90M | 259.50M | 51.99M | -290.00K | 1.37M | 1.49M |
| Net Income | -511.70M | -279.40M | 27.97M | -1.07M | -282.22K | -134.43K |
Balance Sheet | ||||||
| Total Assets | 22.66B | 15.89B | 5.10B | 20.50M | 21.44M | 18.00M |
| Cash, Cash Equivalents and Short-Term Investments | 2.77B | 2.36B | 5.07B | 6.14M | 8.01M | 6.81M |
| Total Debt | 7.04B | 3.91B | 577.00K | 2.62M | 2.40M | 2.29M |
| Total Liabilities | 12.29B | 6.18B | 45.36M | 13.02M | 11.89M | 8.64M |
| Stockholders Equity | 10.38B | 9.71B | 5.05B | 7.47M | 9.55M | 9.36M |
Cash Flow | ||||||
| Free Cash Flow | 140.60M | 183.20M | 84.78M | 463.00K | 2.00M | 111.27K |
| Operating Cash Flow | 253.10M | 261.40M | 84.88M | 584.00K | 2.04M | 226.03K |
| Investing Cash Flow | -2.07B | -10.63B | -102.00K | -400.00K | -188.74K | -510.46K |
| Financing Cash Flow | 5.31B | 7.66B | 4.98B | -2.05M | -655.13K | 503.13K |
QXO Inc Risk Analysis
QXO Inc disclosed 34 risk factors in its most recent earnings report. QXO Inc reported the most risks in the "Production" 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $13.06B | 40.96 | 17.74% | ― | 8.59% | 20.88% | |
80 Outperform | $12.46B | 60.73 | 85.23% | ― | 6.48% | -3.07% | |
76 Outperform | $15.00B | 102.06 | 5.72% | 4.32% | 17.94% | -69.28% | |
72 Outperform | $10.18B | 36.64 | 24.10% | 0.83% | 12.85% | 14.73% | |
67 Neutral | $18.33B | -30.63 | -18.85% | ― | 13.98% | -27.86% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
48 Neutral | $13.85B | -16.05 | -5.11% | 21.30% | 408.19% | -307.71% |
* Industrials Sector Average
QXO
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MANH
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213.77
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DOCU
DocuSign
68.41
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DT
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51.90
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U
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41.66
-3.84
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BSY
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33.71
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-37.48%
QXO Inc Corporate Events
Business Operations and StrategyExecutive/Board Changes
QXO Inc Appoints Ken West to Bolster Operations
Positive
Aug 24, 2026
On August 21, 2026, QXO Inc. appointed veteran industrial executive Ken West as president and chief operating officer, with his role effective September 1, 2026. West, who will oversee day-to-day operations under chairman and chief executive Brad ...
Private Placements and FinancingRegulatory Filings and Compliance
QXO registers resale of Series C convertible securities
Neutral
Jul 23, 2026
On July 23, 2026, QXO Inc. filed a prospectus supplement with the SEC to its existing shelf registration statement, enabling certain selling stockholders to resell 41,405,099 shares of common stock issuable upon conversion of its Series C Converti...
Business Operations and StrategyFinancial Disclosures
QXO Outlines Growth Strategy for Unified Building Platform
Positive
Jul 9, 2026
On July 9, 2026, QXO posted an investor QA outlining how it plans to create value by leveraging consolidation in the under-digitized building products market and transforming recently acquired assets Beacon, Kodiak and TopBuild into a unified, tec...
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
QXO Completes TopBuild Acquisition and Expands Capital Structure
Positive
Jul 1, 2026
QXO closed its acquisition of TopBuild Corp. on July 1, 2026, transforming TopBuild into a wholly owned subsidiary and strengthening QXO’s leadership in insulation, roofing, waterproofing and regional lumber and building materials markets. F...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
QXO advances TopBuild acquisition with successful bond tenders
Positive
Jun 30, 2026
On June 30, 2026, QXO Inc. reported the final results of cash tender offers and consent solicitations conducted by its subsidiary Titanium MergerCo for TopBuild Corp.’s $500 million 4.125% senior notes due 2032 and $750 million 5.625% senior...
Business Operations and StrategyM&A TransactionsShareholder Meetings
QXO Stockholders Clear Path for TopBuild Acquisition
Positive
Jun 29, 2026
On June 29, 2026, QXO stockholders approved issuing new common shares to TopBuild shareholders and doubling QXO’s authorized common stock to 4 billion shares, key steps toward completing QXO’s acquisition of TopBuild. The special meeti...
Legal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
QXO, TopBuild supplement proxy amid shareholder litigation
Negative
Jun 22, 2026
On April 18, 2026, QXO Inc. signed a merger agreement to acquire TopBuild Corp. through a two-step merger that would leave TopBuild as a wholly owned subsidiary, and on May 29, 2026 the SEC declared effective QXO’s Form S-4 registration stat...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
QXO Inc Completes $3 Billion Senior Notes Offering
Positive
Jun 17, 2026
On June 17, 2026, QXO Building Products, a wholly owned subsidiary of QXO Inc., completed a private offering of $3 billion in senior notes split between 6.500% notes due 2031 and 6.875% notes due 2034, with proceeds placed in escrow to fund the pr...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
QXO Reports Strong Early Results in TopBuild Tender
Positive
Jun 12, 2026
On June 12, 2026, QXO announced early tender results for cash tender offers and consent solicitations by its subsidiary Titanium MergerCo covering any and all of TopBuild Corp.’s $500 million 4.125% senior notes due 2032 and $750 million 5.6...
M&A Transactions
QXO Advances TopBuild Acquisition With Shareholder Election Deadline
Positive
Jun 4, 2026
On June 4, 2026, QXO Inc. and TopBuild Corp. announced that TopBuild shareholders have until 5:00 p.m. Eastern Time on June 29, 2026 to elect the form of consideration they wish to receive in QXO’s acquisition of TopBuild. Investors can choo...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
QXO Prices $3 Billion Notes to Fund TopBuild Acquisition
Positive
Jun 4, 2026
On June 3, 2026, QXO, Inc. announced that its subsidiary QXO Building Products, Inc. had priced a $3 billion private offering of senior notes, comprising $1.5 billion of 6.500% notes due 2031 and $1.5 billion of 6.875% notes due 2034, with closing...
M&A TransactionsPrivate Placements and Financing
QXO Plans Major Senior Notes Offering for TopBuild Deal
Neutral
Jun 2, 2026
On June 2, 2026, QXO, Inc. said its subsidiary QXO Building Products intends to privately offer $1.5 billion of senior notes due 2031 and $1.5 billion of senior notes due 2034 to qualified institutional buyers and certain non-U.S. investors. If th...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
QXO Launches Tender Offers for TopBuild Senior Notes
Positive
May 29, 2026
On May 29, 2026, QXO launched cash tender offers via its subsidiary Titanium MergerCo to purchase any and all of TopBuild Corp.’s $500 million 4.125% senior notes due 2032 and $750 million 5.625% senior notes due 2034, alongside consent soli...
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.