RXO, Inc. (RXO) AI Stock Analysis

• Market Cap: $2.71B
• Dividend Yield: N/A
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: 46.41%
• EPS Growth: -1113.24%
• Country: US
• Employees: 7,540
• Sector: Industrials
• Sector Strength: 72
• Industry: Trucking
• EPS (TTM): 0.04
• Shares Outstanding: 163,987,240
• 10 Day Avg. Volume: 2,620,536
• 30 Day Avg. Volume: 2,176,201
• 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: 1.22
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 3.85
• Enterprise Value/Ebitda: 85.79
• 1Y Price Target: $15.40
• Price Target Upside: -4.64% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 53 Neutral
• Price Target: $17.00 ▲(5.26% Upside)

RXO's overall stock score is primarily driven by its financial performance challenges, particularly in profitability and cash flow. The positive sentiment from the earnings call and neutral technical indicators provide some support, but the negative valuation metrics weigh heavily on the score.

Positive Factors

Revenue Growth

Sustained revenue growth indicates RXO's ability to expand its market presence and capture more business, which is crucial for long-term success.

Technology Integration

Successful tech integration enhances operational efficiency and cost management, providing a competitive edge in logistics.

Cash Flow Conversion

Strong cash flow conversion supports financial stability and provides resources for strategic investments and debt reduction.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder RXO's ability to reinvest in growth and weather economic downturns, impacting long-term viability.

Cash Flow Issues

Negative cash flow can strain operations and limit financial flexibility, affecting RXO's capacity to invest in growth opportunities.

Automotive Industry Headwinds

Dependence on the automotive sector exposes RXO to industry-specific risks, potentially affecting revenue stability and growth.

RXO, Inc. Business Overview & Revenue Model

Company Description

RXO, Inc. (RXO) is a prominent logistics and transportation solutions provider, specializing in freight brokerage and logistics services. The company operates primarily in the transportation sector, offering a comprehensive suite of services that includes truckload and less-than-truckload (LTL) transportation, along with value-added logistics solutions. RXO leverages advanced technology and data analytics to optimize supply chain operations for its diverse customer base, which spans various industries.

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. shows revenue growth but struggles with profitability and cash flow. The company has a moderate leverage level, but negative returns on equity and cash flow issues highlight the need for strategic improvements.

Income Statement

RXO, Inc. has shown a positive revenue growth rate of 9.65% in the TTM, indicating an upward trend in sales. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains modest at 15.45%, but the declining trend in profitability metrics suggests challenges in cost management and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.43 in the TTM, indicating a relatively moderate leverage level compared to previous years. However, the return on equity is negative, reflecting ongoing losses. The equity ratio stands at approximately 49.6%, suggesting a stable capital structure, but the negative ROE highlights the need for improved profitability.

Cash Flow

RXO, Inc. faces challenges in cash flow management, with negative operating and free cash flows in the TTM. The free cash flow growth rate is significantly negative, and the operating cash flow to net income ratio is also negative, indicating cash flow issues. Despite a high free cash flow to net income ratio, the overall cash flow position is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.56B	4.55B	3.93B	4.80B	4.69B	3.36B
Gross Profit	859.00M	696.00M	658.00M	1.17B	1.01B	789.00M
EBITDA	38.57M	-187.00M	103.00M	209.00M	277.00M	160.00M
Net Income	-308.00M	-290.00M	4.00M	92.00M	150.00M	43.00M
Balance Sheet
Total Assets	3.20B	3.41B	1.82B	2.04B	2.07B	1.87B
Cash, Cash Equivalents and Short-Term Investments	18.00M	35.00M	5.00M	98.00M	29.00M	70.00M
Total Debt	679.00M	664.00M	558.00M	617.00M	135.00M	116.00M
Total Liabilities	1.61B	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	-37.01M	-57.00M	25.00M	253.00M	116.00M	-22.00M
Operating Cash Flow	-13.98M	-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	1.09B	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: Positive
• 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 16.60, above the 50-day MA of 16.07, and below the 200-day MA of 18.54, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 21.23 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
SNDR	69 Neutral	3.85B	30.86	2.53%	1.73%	2.20%	7.86%
ARCB	66 Neutral	1.56B	10.19	12.17%	0.69%	-6.42%	25.72%
ULH	62 Neutral	632.44M	10.37	9.34%	1.71%	-5.55%	-52.21%
WERN	58 Neutral	1.60B	31.15	3.69%	2.10%	-6.43%	-13.76%
MRTN	56 Neutral	906.51M	43.34	2.71%	2.24%	-11.77%	-52.06%
RXO	53 Neutral	$2.71B	―	-27.96%	―	46.41%	-1113.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

RXO, Inc. Corporate Events

RXO Reports Q2 2025 Financial Results with Revenue Growth

On August 7, 2025, RXO reported its second-quarter financial results, highlighting a 1% increase in brokerage volume year-over-year, driven by a 45% growth in less-than-truckload volume. The company achieved a brokerage gross margin of 14.4%, with its Last Mile service experiencing a 17% year-over-year stop growth, marking the fourth consecutive quarter of double-digit growth. Despite a challenging freight market, RXO’s revenue rose to $1.4 billion from $930 million in the previous year, although it reported a GAAP net loss of $9 million, impacted by $10 million in transaction and restructuring costs. Adjusted net income improved to $7 million from $4 million in the previous year, and adjusted EBITDA increased to $38 million from $28 million.