Gxo Logistics Stock Fair Value – GXO LOGISTICS Reports Financial Results for Fourth Quarter of FY2022, Ending February 14th, 2023.
March 24, 2023
Earnings Overview
GXO LOGISTICS ($NYSE:GXO) released their financial results for the fourth quarter of FY2022, which ended on February 14th, 2023, on December 31st, 2022. Total revenue for the quarter was USD 46.0 million, a 17.9% decline from the prior year, while net income rose 9.1% to USD 2467.0 million.
Transcripts Simplified
Fourth quarter revenue was $2.5 billion, adjusted EBITDA was $205 million, and net income was $46 million. Organic revenue growth rate was 7.5%. Adjusted EBITDA grew by 23% year-over-year.
Guidance for 2023 includes organic revenue growth of 6%-8% and adjusted EBITDA of $700-$730 million. GXO also announced a new efficiency project with a 2-year cash-on-cash payback, and anticipates a leverage ratio of 1.5x by the end of the year.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gxo Logistics. More…
| Total Revenues | Net Income | Net Margin |
| 8.99k | 197 | 2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gxo Logistics. More…
| Operations | Investing | Financing |
| 542 | -1.15k | 787 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gxo Logistics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.22k | 6.54k | 22.28 |
Key Ratios Snapshot
Some of the financial key ratios for Gxo Logistics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.9% | 26.4% | 3.3% |
| FCF Margin | ROE | ROA |
| 2.2% | 7.0% | 2.0% |
Share Price
The stock opened at $52.7 and closed at $53.2, down by 0.3% from last closing price of 53.4. GXO attributed the strong performance to their focus on cost reduction, efficient operations and strategic investments in the supply chain and technology. Overall, GXO LOGISTICS had a solid fourth quarter, posting increased profits and a steady rise in revenues. The company will continue to focus on cost reduction and strategic investments in order to remain profitable and continue delivering strong results in the coming quarters. Live Quote…
Analysis – Gxo Logistics Stock Fair Value
At GoodWhale, we recently conducted an analysis of GXO LOGISTICS‘s wellbeing. We have determined that the fair value of GXO LOGISTICS’s share is around $65.4, calculated using our proprietary Valuation Line. Currently, GXO LOGISTICS stock is being traded at $53.2, which is a fair price that is undervalued by 18.6%. Therefore, investors may find this stock an attractive option as there is an opportunity to obtain an above market return. More…
Peers
In the logistics industry, GXO Logistics Inc. competes with ID Logistics, Wildpack Beverage Inc., Yasuda Logistics Corp., and other companies. The company focuses on providing efficient and cost-effective logistics solutions to its clients. It has a strong network of warehouses and distribution centers across the United States. The company has a team of experienced and qualified professionals who are dedicated to providing the best possible services to their clients.
– ID Logistics ($LTS:0QAG)
DHL Logistics has a market cap of 1.53B as of 2022, a Return on Equity of 16.87%. The company is a leading provider of logistics and transportation services. It offers a wide range of services including air and ocean freight, warehousing, and e-commerce fulfillment.
– Wildpack Beverage Inc ($TSXV:CANS)
Wildpack Beverage Inc is a company that manufactures and distributes alcoholic beverages. The company has a market capitalization of 15.25 million as of 2022 and a return on equity of -19.12%. Wildpack has a portfolio of products that includes beer, wine, and spirits. The company’s products are available in a variety of channels, including retail, on-premise, and online. Wildpack is headquartered in Los Angeles, California.
– Yasuda Logistics Corp ($TSE:9324)
Yasuda Logistics Corp is a Japanese company that provides logistics services. The company has a market cap of 26.73B as of 2022 and a Return on Equity of 3.82%. Yasuda Logistics Corp is a publicly traded company on the Tokyo Stock Exchange.
Summary
GXO Logistics reported their financial results for the fourth quarter of FY2022, showing a 17.9% decrease in total revenue compared to the same period the previous year. However, net income for the quarter increased by 9.1%, amounting to USD 2467.0 million. While the decrease in revenue is concerning, the increase in net income suggests that the company is becoming more efficient and successful in its operations. For prospective investors, GXO Logistics appears to be a stable and profitable investment opportunity, with a potential for growth if the company can find ways to increase their revenue.
