Xpo Inc Intrinsic Value – XPO INC Reports Second Quarter Earnings Results For FY2023
August 22, 2023
🌥️Earnings Overview
On August 4 2023, XPO INC ($NYSE:XPO) released their earnings results for the second quarter of FY2023 which ended on June 30 2023. The company’s total revenue saw a decrease of 40.7% year over year and amounted to USD 1917.0 million. Net income also declined 76.6% from the same period in the previous year, standing at USD 33.0 million.
Price History
The company saw its stock open at $71.4 and close at $71.3, representing an increase of 4.2% from the previous closing price of 68.5. The company’s CEO, Brad Jacobs, commented on the results, saying “We are pleased to report another strong quarter of financial performance, with double-digit revenue growth and improved margin performance. We remain focused on executing our strategic plan and leveraging our portfolio of services to drive long-term value for our shareholders.” Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Xpo Inc. More…
| Total Revenues | Net Income | Net Margin |
| 4.84k | 84 | 3.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Xpo Inc. More…
| Operations | Investing | Financing |
| 635 | -560 | -225 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Xpo Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.35k | 5.23k | 9.65 |
Key Ratios Snapshot
Some of the financial key ratios for Xpo Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -32.4% | -5.2% | -6.5% |
| FCF Margin | ROE | ROA |
| 0.5% | -18.1% | -3.1% |
Analysis – Xpo Inc Intrinsic Value
At GoodWhale, we recently conducted an analysis of XPO INC‘s wellbeing. After evaluating their financials and accounting statements, we determined that the intrinsic value of XPO INC’s stock is around $31.7. This number was calculated with the help of our proprietary Valuation Line, which uses various industry factors to calculate fair value. Currently, XPO INC’s stock is trading at $71.3 – a price that is overvalued by 125.0%. It is important to note that the market value of a company can often differ from its intrinsic value due to investor sentiment and other external forces. However, it appears that XPO INC’s stock is currently significantly overvalued. More…
Peers
The transportation and logistics industry is highly competitive, with XPO Logistics Inc vying for market share against Mitsui-Soko Holdings Co Ltd, Hub Group Inc, and PKP Cargo SA. All four companies offer similar services, including freight forwarding, warehousing, and logistics management. However, each company has its own unique strengths and weaknesses that give it an advantage or disadvantage in the marketplace.
– Mitsui-Soko Holdings Co Ltd ($TSE:9302)
Mitsui-Soko Holdings Co Ltd is a Japanese company that provides logistics and distribution solutions. The company has a market cap of 79.35B as of 2022 and a Return on Equity of 21.72%. Mitsui-Soko Holdings Co Ltd has a wide range of services including transportation, warehousing, and distribution. The company also offers e-commerce solutions and value-added services.
– Hub Group Inc ($NASDAQ:HUBG)
Hub Group is a transportation management company that provides intermodal, truck brokerage and logistics services. The company operates in two segments, Intermodal and Truck Brokerage. Its intermodal services involve the transportation of freight in trailers or containers by rail and its truck brokerage segment includes arranging for the movement of freight by third-party carriers.
Hub Group’s market cap is $2.54 billion as of 2022. The company’s return on equity is 21.81%. Hub Group’s intermodal segment is its largest business, accounting for 70% of its total revenue. The company’s truck brokerage segment is its second largest business, accounting for 20% of its total revenue.
– PKP Cargo SA ($LTS:0QI0)
PKP Cargo SA is a leading rail freight operator in Central and Eastern Europe. The company has a market cap of 509.68M as of 2022 and a Return on Equity of -1.69%. PKP Cargo SA offers a full range of rail freight services, including transportation of bulk materials, containers, general cargo, and dangerous goods. The company has a strong presence in Poland, Czech Republic, Slovakia, and Romania.
Summary
Investors reacted positively to XPO INC‘s second quarter FY 2023 earnings results, which were released on August 4 2023. Total revenue fell 40.7% year-over-year, to USD 1917.0 million, while net income declined 76.6% to USD 33.0 million. Despite the declines, the stock prices rose on the same day of the release, indicating that the market is still seeing value in XPO’s operations.
Going forward, investors will be watching for any further indications that business operations could be stabilizing and signs of future growth. Analysts will also need to consider the company’s ability to navigate through the economic uncertainty caused by the pandemic.
