Rxo Inc Intrinsic Value Calculation – RXO INC Reports Fourth Quarter Earnings Results for 2022 on February 7, 2023.

Earnings Overview

On February 7, 2023, RXO INC ($NYSE:RXO) reported their fourth quarter fiscal year 2022 earnings results with a total revenue of USD -4.0 million, a decrease of 109.5% year-on-year. Net income for the quarter was USD 1120.0 million, a decrease of 15.6% compared to the same quarter in the prior fiscal year. The quarter ended on December 31, 2022.

Transcripts Simplified

RXO INC generated $1.1 billion in revenue compared to $1.3 billion in the fourth quarter of 2021 with a 19.6% gross margin, up 250 basis points year-over-year. Adjusted EBITDA was $64 million and adjusted earnings for the quarter was $0.28 per share. Cash at the end of the quarter was $98 million and free cash flow post-spin was $25 million. Available capital remains strong with approximately $600 million in liquidity, including a $500 million revolver which is undrawn.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Rxo Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Rxo Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Rxo Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Rxo Inc are shown below. More…

Stock Price

The stock opened at $20.2 and closed at the same price, a marginal increase of 0.9% from the previous closing price of $20.0. This represented a positive end to the quarter for RXO INC, with their stock maintaining a steady growth since the previous quarter’s reports. This strong performance was attributed to their expansion into new markets and product lines. Overall, RXO INC’s fourth quarter earnings report was largely successful, with their stock having maintained a steady growth throughout the period.

This is indicative of the company’s strong business fundamentals, and also reflects the market’s confidence in RXO INC’s long-term prospects. With their continued focus on cost-efficiency and profitability, RXO INC is well-positioned to further grow in the coming quarters. Live Quote…

Analysis – Rxo Inc Intrinsic Value Calculation

At GoodWhale, we have conducted an analysis of RXO INC‘s fundamentals. Our proprietary Valuation Line calculates the fair value of RXO INC’s stock to be around $18.5. However, the current market price of RXO INC is standing at $20.2, a fair price overvalued by 9.3%. Therefore, it is not recommended to purchase RXO INC shares at this moment. More…

Peers

The company has a broad portfolio of services and capabilities, including truckload and intermodal, dedicated truckload services, ocean and air cargo, temperature-controlled freight, and customs brokerage. RXO Inc is a major player in the transportation and logistics industry, competing against JB Hunt Transport Services Inc, ArcBest Corp, and Ultrapetrol (Bahamas) Ltd.

– JB Hunt Transport Services Inc ($NASDAQ:JBHT)

J.B. Hunt Transport Services, Inc. is a leading national transportation and logistics company headquartered in Arkansas. As of 2023, the company has a market cap of 19.77 billion and a Return on Equity (ROE) of 26.69%. The company provides transportation and delivery services for customers across the United States, Canada, and Mexico, and is one of the largest transportation companies in North America. J.B. Hunt offers a variety of services including intermodal, truckload, dedicated, and final mile, as well as integrated services that combine multiple service offerings. The company’s strong market position and excellent customer service have allowed it to maintain a healthy ROE, reflecting its success in producing consistent profits for shareholders.

– ArcBest Corp ($NASDAQ:ARCB)

ArcBest Corp is a leading provider of integrated logistics solutions. Founded in 1923, ArcBest has grown to become a Fortune 500 company and one of the largest transportation companies in North America. As of 2023, ArcBest has a market cap of 2.44 billion dollars, indicating its strong market presence and potential for growth. Additionally, ArcBest has a Return on Equity of 22.0%, indicating that it is successfully reinvesting its profits back into the business and maximizing its returns.

– Ultrapetrol (Bahamas) Ltd ($OTCPK:ULTRF)

Ultrapetrol (Bahamas) Ltd is a publicly traded marine transportation company that provides services to the oil, gas, and bulk liquid industry. The company has a market cap of 1.13M as of 2023 and a Return on Equity of -10.92%. The market cap is a measure of the company’s value and is calculated by taking the total number of outstanding shares multiplied by the current share price. A negative return on equity indicates that the company has not been able to generate enough profit from its assets to cover its liabilities and equity obligations.

Summary

RXO INC experienced a difficult fourth quarter as total revenue declined by 109.5% compared to the same quarter the previous year and net income decreased by 15.6%. This could be an indication that the company is struggling to make profits and could be a red flag for investors. It is important to do further research into the company’s financials and operations for more insight into the current state of the business. By analyzing the company’s balance sheet, income statement, and cash flow statement, investors can improve their understanding of the overall financial health of RXO INC and make more informed investment decisions.