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Upturn AI SWOT - About
RXO Inc. (RXO)
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Upturn Advisory Summary
02/07/2025: RXO (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Analysis of Past Performance
Type Stock | Historic Profit 8.96% | Avg. Invested days 33 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 02/07/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.12B USD | Price to earnings Ratio - | 1Y Target Price 22 |
Price to earnings Ratio - | 1Y Target Price 22 | ||
Volume (30-day avg) 1091578 | Beta 1.5 | 52 Weeks Range 17.50 - 32.82 | Updated Date 04/1/2025 |
52 Weeks Range 17.50 - 32.82 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -2.17 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -6.37% | Operating Margin (TTM) 0.54% |
Management Effectiveness
Return on Assets (TTM) 0.72% | Return on Equity (TTM) -26.29% |
Valuation
Trailing PE - | Forward PE 59.52 | Enterprise Value 3748559241 | Price to Sales(TTM) 0.69 |
Enterprise Value 3748559241 | Price to Sales(TTM) 0.69 | ||
Enterprise Value to Revenue 0.82 | Enterprise Value to EBITDA 71.62 | Shares Outstanding 163328000 | Shares Floating 133801326 |
Shares Outstanding 163328000 | Shares Floating 133801326 | ||
Percent Insiders 1.15 | Percent Institutions 105.86 |
Analyst Ratings
Rating 3 | Target Price 27 | Buy 1 | Strong Buy 2 |
Buy 1 | Strong Buy 2 | ||
Hold 12 | Sell 1 | Strong Sell 2 | |
Strong Sell 2 |
Upturn AI SWOT
RXO Inc.
Company Overview
History and Background
RXO was spun off from XPO Logistics in November 2022. It focuses on tech-enabled brokerage services for truckload transportation and less-than-truckload (LTL) freight.
Core Business Areas
- Truckload Brokerage: Matches shippers needing freight moved with carriers that have available capacity. Utilizes technology to optimize matching and pricing.
- Less-Than-Truckload (LTL): Consolidates multiple smaller shipments onto a single truck, offering cost-effective solutions for smaller businesses.
- Managed Transportation: RXO manages and executes supply chains for large companies, encompassing truckload, less-than-truckload, expedited, and specialized freight, as well as warehousing and other value-added services.
- Freight Forwarding: RXO provides international air and ocean freight forwarding, customs brokerage, and other supply chain services
Leadership and Structure
Drew Wilkerson is the Chief Executive Officer. The company operates with a centralized structure, leveraging technology across its various segments.
Top Products and Market Share
Key Offerings
- RXO Connect: A digital freight marketplace that connects shippers and carriers. Market share data not readily available. Competitors include C.H. Robinson, Echo Global Logistics, and Uber Freight.
- LTL Services: Provides access to a network of LTL carriers. Market share data not readily available. Competitors include ArcBest, Old Dominion Freight Line, and Saia.
- Managed Transportation: RXO's managed transportation offering is a comprehensive solution for shippers needing to outsource their supply chains. Market share data not readily available. Competitors include Ryder, Penske and UPS Supply Chain Solutions
Market Dynamics
Industry Overview
The transportation and logistics industry is experiencing increased demand, driven by e-commerce and global trade. It is also facing challenges from rising fuel costs, driver shortages, and technological disruption.
Positioning
RXO is positioned as a tech-enabled third-party logistics (3PL) provider, aiming to offer superior service and efficiency through its technology platform.
Total Addressable Market (TAM)
The global 3PL market is estimated to be worth hundreds of billions of dollars. RXO is positioned to capture a significant portion of this TAM through its focus on technology and customer service.
Upturn SWOT Analysis
Strengths
- Technology Platform (RXO Connect)
- Experienced Management Team
- Large Carrier Network
- Strong Customer Relationships
- Scalable Business Model
Weaknesses
- Relatively short operational history as RXO Inc.
- Dependence on macroeconomic conditions
- Exposure to fuel price fluctuations
- Integration risks from future acquisitions
- Limited brand awareness compared to established players
Opportunities
- Expansion into new geographic markets
- Increased adoption of digital freight platforms
- Growth in e-commerce
- Strategic acquisitions
- Offering of value-added services
Threats
- Economic downturn
- Increased competition
- Driver shortages
- Rising fuel costs
- Cybersecurity risks
- Autonomous Trucking
Competitors and Market Share
Key Competitors
- CHRW
- ECHO
- JBHT
Competitive Landscape
RXO competes with both traditional and tech-enabled 3PL providers. It aims to differentiate itself through its superior technology platform and customer service.
Major Acquisitions
None
- Year: 2023
- Acquisition Price (USD millions): 0
- Strategic Rationale: N/A
Growth Trajectory and Initiatives
Historical Growth: Historical growth is tied to XPO's performance before the spin-off. RXO's growth since then has been driven by increased demand for its brokerage services.
Future Projections: Analyst estimates project continued growth for RXO, driven by the increasing adoption of digital freight platforms.
Recent Initiatives: RXO is focused on expanding its technology platform and growing its customer base through strategic partnerships.
Summary
RXO Inc. is a relatively new player, formed from the spin-off of XPO Logistics' brokerage segment. Its technology platform and scalable business model are strong advantages. However, competition and economic sensitivity are key threats, and the company still needs to grow its brand awareness.
Similar Companies
- CHRW
- ECHO
- JBHT
- KNX
- UPS
- FDX
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Analyst Reports
- Industry Publications
Disclaimers:
The data provided is for informational purposes only and should not be considered financial advice. Market data is subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About RXO Inc.
Exchange NYSE | Headquaters Charlotte, NC, United States | ||
IPO Launch date 2022-10-27 | CEO & Director Mr. Drew M. Wilkerson | ||
Sector Industrials | Industry Trucking | Full time employees 7540 | Website https://www.rxo.com |
Full time employees 7540 | Website https://www.rxo.com | ||
RXO, Inc. engages in truck brokerage business in the United States, Canada, Mexico, Asia, and Europe. The company offers truckload freight brokering services. It also provides asset-light managed transportation and last mile services, as well as freight forwarding services, including facilitation of ocean and air transportation, customs brokerage, and additional domestic services. RXO, Inc. was incorporated in 2022 and is based in Charlotte, North Carolina.
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