Is GXO Logistics Stock a Good Investment?
GXO Logistics Investment Advice | GXO |
- Examine GXO Logistics' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research GXO Logistics' leadership team and their track record. Good management can help GXO Logistics navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Air Freight & Logistics space and any emerging trends that could impact GXO Logistics' business and its evolving consumer preferences.
- Compare GXO Logistics' performance and market position to its competitors. Analyze how GXO Logistics is positioned in terms of product offerings, innovation, and market share.
- Check if GXO Logistics pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about GXO Logistics' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in GXO Logistics stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if GXO Logistics is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine GXO Logistics Stock
Researching GXO Logistics' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 95.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 1.65. Some equities with similar Price to Book (P/B) outperform the market in the long run. GXO Logistics has Price/Earnings To Growth (PEG) ratio of 1.04. The entity had not issued any dividends in recent years.
To determine if GXO Logistics is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding GXO Logistics' research are outlined below:
| GXO Logistics generated a negative expected return over the last 90 days | |
| GXO Logistics has high historical volatility and very poor performance | |
| GXO Logistics has high likelihood to experience some financial distress in the next 2 years | |
| GXO Logistics has 4.09 B in debt with debt to equity (D/E) ratio of 1.54, which is OK given its current industry classification. GXO Logistics has a current ratio of 0.93, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for GXO to invest in growth at high rates of return. | |
| Over 95.0% of GXO Logistics shares are owned by institutional investors | |
| Latest headline from insidermonkey.com: Why Is GXO Logistics, Inc. Among The Best TaaS Stocks To Invest In According to Hedge Funds |
GXO Logistics Quarterly Good Will |
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GXO Logistics uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in GXO Logistics. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to GXO Logistics' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 13th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 13th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact GXO Logistics' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises GXO Logistics' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2023-05-09 | 2023-03-31 | 0.43 | 0.49 | 0.06 | 13 | ||
2022-08-02 | 2022-06-30 | 0.61 | 0.68 | 0.07 | 11 | ||
2022-05-04 | 2022-03-31 | 0.52 | 0.59 | 0.07 | 13 | ||
2023-02-14 | 2022-12-31 | 0.75 | 0.83 | 0.08 | 10 | ||
2023-08-02 | 2023-06-30 | 0.61 | 0.7 | 0.09 | 14 | ||
2022-02-15 | 2021-12-31 | 0.52 | 0.73 | 0.21 | 40 | ||
2021-08-09 | 2021-06-30 | 0.3342 | -0.27 | -0.6042 | 180 |
Know GXO Logistics' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as GXO Logistics is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading GXO Logistics backward and forwards among themselves. GXO Logistics' institutional investor refers to the entity that pools money to purchase GXO Logistics' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Cooper Creek Partners Management Llc | 2024-09-30 | 2.4 M | Geode Capital Management, Llc | 2024-09-30 | 2 M | Swedbank Ab | 2024-09-30 | 1.8 M | Eminence Capital Llc | 2024-09-30 | 1.8 M | Amundi | 2024-09-30 | 1.8 M | River Road Asset Management, Llc | 2024-09-30 | 1.3 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1.2 M | Amvescap Plc. | 2024-09-30 | 1.2 M | Fmr Inc | 2024-09-30 | 1.1 M | Orbis Allan Gray Ltd | 2024-09-30 | 14.1 M | Vanguard Group Inc | 2024-09-30 | 11.1 M |
GXO Logistics' market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 5.11 B.Market Cap |
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GXO Logistics' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.04 | 0.04 | |
| Return On Capital Employed | 0.05 | 0.03 | |
| Return On Assets | 0.02 | 0.01 | |
| Return On Equity | 0.08 | 0.08 |
Determining GXO Logistics' profitability involves analyzing its financial statements and using various financial metrics to determine if GXO Logistics is a good buy. For example, gross profit margin measures GXO Logistics' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of GXO Logistics' profitability and make more informed investment decisions.
GXO Logistics' Earnings Breakdown by Geography
Evaluate GXO Logistics' management efficiency
GXO Logistics has Return on Asset of 0.0223 % which means that on every $100 spent on assets, it made $0.0223 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0373 %, implying that it generated $0.0373 on every 100 dollars invested. GXO Logistics' management efficiency ratios could be used to measure how well GXO Logistics manages its routine affairs as well as how well it operates its assets and liabilities. At this time, GXO Logistics' Return On Tangible Assets are very stable compared to the past year. As of the 28th of December 2024, Return On Equity is likely to grow to 0.08, while Return On Capital Employed is likely to drop 0.03. At this time, GXO Logistics' Non Currrent Assets Other are very stable compared to the past year. As of the 28th of December 2024, Return On Tangible Assets is likely to grow to 0.04, while Total Assets are likely to drop about 8.5 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 24.78 | 26.16 | |
| Tangible Book Value Per Share | (4.31) | (4.09) | |
| Enterprise Value Over EBITDA | 16.02 | 19.04 | |
| Price Book Value Ratio | 2.50 | 2.94 | |
| Enterprise Value Multiple | 16.02 | 19.04 | |
| Price Fair Value | 2.50 | 2.94 |
The management strategies employed by GXO Logistics' are designed to enhance shareholder value and ensure long-term growth. We assess the effectiveness of these strategies in our stock analysis.
Beta 1.639 |
Basic technical analysis of GXO Stock
As of the 28th of December, GXO Logistics retains the risk adjusted performance of (0.05), and Market Risk Adjusted Performance of (0.55). GXO Logistics technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices.GXO Logistics' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific GXO Logistics insiders, such as employees or executives, is commonly permitted as long as it does not rely on GXO Logistics' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases GXO Logistics insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
GXO Logistics' Outstanding Corporate Bonds
GXO Logistics issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. GXO Logistics uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most GXO bonds can be classified according to their maturity, which is the date when GXO Logistics has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| US36262BAA08 Corp BondUS36262BAA08 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HLNLN 3125 24 MAR 25 Corp BondUS36264NAB01 | View | |
| MPLX LP 4875 Corp BondUS55336VAG59 | View | |
| HLNLN 3625 24 MAR 32 Corp BondUS36264FAM32 | View | |
| HLNLN 3375 24 MAR 29 Corp BondUS36264FAL58 | View |
Understand GXO Logistics' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing GXO Logistics' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.55) | |||
| Mean Deviation | 1.72 | |||
| Coefficient Of Variation | (1,422) | |||
| Standard Deviation | 3.11 | |||
| Variance | 9.68 | |||
| Information Ratio | (0.08) | |||
| Jensen Alpha | (0.24) | |||
| Total Risk Alpha | (0.32) | |||
| Treynor Ratio | (0.56) | |||
| Maximum Drawdown | 27.9 | |||
| Value At Risk | (3.41) | |||
| Potential Upside | 2.56 | |||
| Skewness | 0.4563 | |||
| Kurtosis | 11.57 |
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.55) | |||
| Mean Deviation | 1.72 | |||
| Coefficient Of Variation | (1,422) | |||
| Standard Deviation | 3.11 | |||
| Variance | 9.68 | |||
| Information Ratio | (0.08) | |||
| Jensen Alpha | (0.24) | |||
| Total Risk Alpha | (0.32) | |||
| Treynor Ratio | (0.56) | |||
| Maximum Drawdown | 27.9 | |||
| Value At Risk | (3.41) | |||
| Potential Upside | 2.56 | |||
| Skewness | 0.4563 | |||
| Kurtosis | 11.57 |
Consider GXO Logistics' intraday indicators
GXO Logistics intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of GXO Logistics stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 26832.71 | |||
| Daily Balance Of Power | 0.6429 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 42.69 | |||
| Day Typical Price | 42.73 | |||
| Price Action Indicator | 0.38 | |||
| Period Momentum Indicator | 0.54 |
GXO Logistics Corporate Filings
8K | 4th of December 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
10Q | 5th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
F4 | 4th of September 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
GXO Stock media impact
Far too much social signal, news, headlines, and media speculation about GXO Logistics that are available to investors today. That information is available publicly through GXO media outlets and privately through word of mouth or via GXO internal channels. However, regardless of the origin, that massive amount of GXO data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of GXO Logistics news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of GXO Logistics relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to GXO Logistics' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive GXO Logistics alpha.
GXO Logistics Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards GXO Logistics can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
GXO Logistics Historical Investor Sentiment
Investor biases related to GXO Logistics' public news can be used to forecast risks associated with an investment in GXO. The trend in average sentiment can be used to explain how an investor holding GXO can time the market purely based on public headlines and social activities around GXO Logistics. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
GXO Logistics' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for GXO Logistics and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average GXO Logistics news discussions. The higher the estimate score, the more favorable the investor's outlook on GXO Logistics.
GXO Logistics Corporate Management
| Elizabeth Fogarty | Chief Communications Officer | Profile | |
| Clare Chatfield | Director | Profile | |
| Bill Fraine | Chief Commercial Officer | Profile | |
| Bradley Jacobs | Chairman of the Board | Profile | |
| Maryclaire Hammond | Chief Officer | Profile | |
| Neil Shelton | Chief Officer | Profile |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in GXO Logistics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in interest. To learn how to invest in GXO Stock, please use our How to Invest in GXO Logistics guide.You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Air Freight & Logistics space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GXO Logistics. If investors know GXO will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GXO Logistics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.50) | Earnings Share 0.89 | Revenue Per Share 92.626 | Quarterly Revenue Growth 0.278 | Return On Assets 0.0223 |
The market value of GXO Logistics is measured differently than its book value, which is the value of GXO that is recorded on the company's balance sheet. Investors also form their own opinion of GXO Logistics' value that differs from its market value or its book value, called intrinsic value, which is GXO Logistics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GXO Logistics' market value can be influenced by many factors that don't directly affect GXO Logistics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between GXO Logistics' value and its price, as these two are different measures arrived at by various means. Investors typically determine if GXO Logistics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GXO Logistics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.