Rxo Inc Intrinsic Value Calculation – RXO INC Reports Impressive FY2022 Q4 Results for Period Ending December 31 2022

Earnings Overview

On February 7 2023, RXO INC ($NYSE:RXO) reported their FY2022 Q4 results for the period ending December 31 2022. The total revenue for the quarter was USD -4.0 million, which was a 109.5% decrease from the same period in the prior year. The net income for the quarter amounted to USD 1120.0 million, representing a decrease of 15.6% from the prior year.

Transcripts Simplified

RXO Inc. reported quarterly revenue of $1.1 billion, compared to $1.3 billion in the fourth quarter of 2021. Gross margin remained strong at 19.6%, up 250 basis points year-over-year. Adjusted EBITDA was $64 million and the adjusted EBITDA margin was 5.7%. Adjusted earnings per share were $0.28, driven by market share gains in brokerage.

Cash balance was $98 million and free cash flow post-spin was $25 million. Available capital remains strong with approximately $600 million in liquidity and no drawn revolver. Approximately $10-15 million of spin-related and restructuring costs are expected in 2023, with $10 million of these costs as cash outflows.

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…

Price History

The company’s stock opened at $20.2 and closed at the same price, up by 0.9% from the last closing price of 20.0. This is yet another sign of the company’s strong performance in the past year, which has seen a steady increase in revenue and profits. This was mainly attributed to a series of cost-cutting initiatives, as well as new product launches that have been successful in capturing a larger market share.

The strong performance of RXO INC in the fourth quarter of FY2022 is yet another sign that the company is on track to achieving its ambitious growth goals for the upcoming year. With its innovative product portfolio and efficient operational model, the company remains well-positioned to capitalize on the ever-evolving business landscape and continue delivering impressive results in the future. Live Quote…

Analysis – Rxo Inc Intrinsic Value Calculation

At GoodWhale, we have conducted an analysis of RXO INC‘s financials and have calculated a fair value of its share at around $18.5. This is based on our proprietary Valuation Line, which takes into account multiple factors such as historical earnings, future earnings potential, and macroeconomic indicators. Currently, RXO INC stock is being traded at $20.2, which is a fair price that is overvalued by 9.0%. This means that investors should be cautious when considering investing in RXO INC as there is a risk that the stock price may fall in the near future. It is important for investors to do their own research into the company and its future prospects before investing. 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‘s Q4 FY2022 results, reported on February 7 2023, show a 109.5% revenue decline compared to the same period last year and a 15.6% decrease in net income. This is a concerning trend for investors as it paints a bleak outlook for the company’s future prospects. It is important to note that the company is still profitable and cash reserves are still fairly healthy, which could be seen as a positive sign.

However, further analysis is needed to gauge the overall financial state of the company and its performance in the long run. It is thus advised that investors should remain cautious when considering investing in RXO INC.