RXO Revenue vs. Net Income

RXO Stock  USD 29.89  0.99  3.21%   
Considering RXO's profitability and operating efficiency indicators, RXO's profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess RXO's ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
2010-12-31
Previous Quarter
3.9 B
Current Value
4.4 B
Quarterly Volatility
618.7 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, RXO's Days Sales Outstanding is very stable compared to the past year. As of the 29th of November 2024, Sales General And Administrative To Revenue is likely to grow to 0.02, while Price To Sales Ratio is likely to drop 0.66. At this time, RXO's Income Tax Expense is very stable compared to the past year. As of the 29th of November 2024, Income Quality is likely to grow to 23.36, while Accumulated Other Comprehensive Income is likely to drop (3.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.240.1676
Way Up
Pretty Stable
Net Profit Margin0.0010.001
Notably Down
Pretty Stable
Operating Profit Margin0.01820.0099
Way Up
Very volatile
Pretax Profit Margin0.0010.001
Notably Down
Pretty Stable
Return On Assets0.00210.0022
Notably Down
Very volatile
Return On Equity0.00640.0067
Notably Down
Pretty Stable
For RXO profitability analysis, we use financial ratios and fundamental drivers that measure the ability of RXO to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well RXO Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between RXO's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of RXO Inc over time as well as its relative position and ranking within its peers.
  

RXO's Revenue Breakdown by Earning Segment

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Is Cargo Ground Transportation 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 RXO. If investors know RXO 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 RXO 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
(0.93)
Earnings Share
(2.14)
Revenue Per Share
31.776
Quarterly Revenue Growth
0.066
Return On Assets
0.0091
The market value of RXO Inc is measured differently than its book value, which is the value of RXO that is recorded on the company's balance sheet. Investors also form their own opinion of RXO's value that differs from its market value or its book value, called intrinsic value, which is RXO's 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 RXO's market value can be influenced by many factors that don't directly affect RXO's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between RXO's value and its price as these two are different measures arrived at by different means. Investors typically determine if RXO is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, RXO's 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.

RXO Inc Net Income vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining RXO's current stock value. Our valuation model uses many indicators to compare RXO value to that of its competitors to determine the firm's financial worth.
RXO Inc is rated fifth in revenue category among its peers. It is rated below average in net income category among its peers . The ratio of Revenue to Net Income for RXO Inc is about  981.75 . At this time, RXO's Total Revenue is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the RXO's earnings, one of the primary drivers of an investment's value.

RXO Revenue vs. Competition

RXO Inc is rated fifth in revenue category among its peers. Market size based on revenue of Industrials industry is at this time estimated at about 38.13 Billion. RXO retains roughly 3.93 Billion in revenue claiming about 10% of equities under Industrials industry.

RXO Net Income vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

RXO

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
3.93 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

RXO

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

RXO Net Income Comparison

RXO is currently under evaluation in net income category among its peers.

RXO Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in RXO, profitability is also one of the essential criteria for including it into their portfolios because, without profit, RXO will eventually generate negative long term returns. The profitability progress is the general direction of RXO's change in net profit over the period of time. It can combine multiple indicators of RXO, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-3 M-3.1 M
Operating Income39 M37 M
Net Income From Continuing OpsM3.8 M
Income Before TaxM3.8 M
Total Other Income Expense Net-35 M-33.2 M
Net Income Applicable To Common Shares105.8 M95.4 M
Net IncomeM3.8 M
Income Tax Expense29 M29.3 M
Net Interest Income-32 M-30.4 M
Interest Income3.6 M3.2 M
Change To Netincome16.2 M15.8 M
Net Income Per Share 0.03  0.03 
Income Quality 22.25  23.36 
Net Income Per E B T 0.70  0.61 

RXO Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on RXO. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of RXO position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the RXO's important profitability drivers and their relationship over time.

Use RXO in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if RXO position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in RXO will appreciate offsetting losses from the drop in the long position's value.

RXO Pair Trading

RXO Inc Pair Trading Analysis

The ability to find closely correlated positions to RXO could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace RXO when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back RXO - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling RXO Inc to buy it.
The correlation of RXO is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as RXO moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if RXO Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for RXO can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your RXO position

In addition to having RXO in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Social Domain Thematic Idea Now

Social Domain
Social Domain Theme
New or established large and mid-sized companies that are involved in the social media industry, including entities that provide web-based or mobile media applications and services across across large segment of population in multiple geographical areas. The Social Domain theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Social Domain Theme or any other thematic opportunities.
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When determining whether RXO Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of RXO's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Rxo Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Rxo Inc Stock:
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You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
To fully project RXO's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of RXO Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include RXO's income statement, its balance sheet, and the statement of cash flows.
Potential RXO investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although RXO investors may work on each financial statement separately, they are all related. The changes in RXO's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on RXO's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.