GXO Logistics, Inc.GXO
NYSE • Industrials
$49.92
P/E
42.85
PEG
0.41
FCF Yield
—
Rev Growth YoY
+10.8% YoY
Gross Margin
11.4%
Health Score
3/10
D/E Ratio
2.65
Confidence
LOW
Business Snapshot
GXO Logistics is a pure-play contract logistics provider, offering warehousing, distribution, and supply chain management services primarily to large corporations in e-commerce, retail, and industrial end-markets. The company operates in the highly fragmented integrated freight and logistics sector, where it positions itself as a market leader focused on high-tech, automated warehouse solutions. With trailing twelve-month revenue of $13.50B, GXO qualifies as a large-cap enterprise, though its market capitalisation is not available in the data. A defining characteristic is its asset-light model that relies on long-term client contracts, which provides revenue visibility but ties profitability closely to client volumes and labour costs.
Financial Health
Gross margin stands at 11.4%, down from 12.1% in the prior year, indicating cost pressure or mix shift, while net margin is reported at 98.0% — a figure that appears implausible for a logistics company and may be distorted by one-time items, though it is not separately flagged. The balance sheet is stretched: debt/equity of 2.65x shows significant leverage, and the current ratio of 0.85x suggests liquidity stress, as current liabilities exceed current assets...
Risk Assessment
- VALUATION — P/E of 42.85x is nearly double the sector average of 22x, leaving limited margin of safety if growth disappoints.
- DEBT / LIQUIDITY — Debt/equity of 2.65x is elevated, and the current ratio of 0.85x signals potential short-term liquidity strain.
- REVENUE DECELERATION — Revenue growth of 10.8% YoY is offset by a 6.0% sequential decline, indicating possible weakening demand or seasonality issues.
- 52-WEEK POSITION — The current price of $49.92 is below the midpoint of the 52-week range ($53.09) and well off the high of $66.85, reflecting a downtrend.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow of just $110,000 is virtually negligible for a company of this revenue size, signalling minimal cash generation....
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