GXO Logistics Valuation
| GXO Stock | USD 45.45 0.07 0.15% |
At this time, the firm appears to be undervalued. GXO Logistics retains a regular Real Value of $54.85 per share. The prevalent price of the firm is $45.45. Our model calculates the value of GXO Logistics from analyzing the firm fundamentals such as return on asset of 0.0223, and Return On Equity of 0.0373 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting GXO Logistics' valuation include:
Price Book 1.7684 | Enterprise Value | Enterprise Value Ebitda 17.5698 | Price Sales 0.4971 | Forward PE 13.4409 |
Undervalued
Today
Please note that GXO Logistics' price fluctuation is very steady at this time. Calculation of the real value of GXO Logistics is based on 3 months time horizon. Increasing GXO Logistics' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since GXO Logistics is currently traded on the exchange, buyers and sellers on that exchange determine the market value of GXO Stock. However, GXO Logistics' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 45.45 | Real 54.85 | Target 66.0 | Hype 45.78 | Naive 43.07 |
The intrinsic value of GXO Logistics' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence GXO Logistics' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of GXO Logistics helps investors to forecast how GXO stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of GXO Logistics more accurately as focusing exclusively on GXO Logistics' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use GXO Logistics' intrinsic value based on its ongoing forecasts of GXO Logistics' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against GXO Logistics' closest peers.
GXO Logistics Cash |
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GXO Valuation Trend
Knowing GXO Logistics' actual value is paramount for traders when making sound investment determinations. Using both GXO Logistics' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
GXO Revenue by Product
GXO Logistics Total Value Analysis
GXO Logistics is currently anticipated to have company total value of 10.47 B with market capitalization of 5.49 B, debt of 4.09 B, and cash on hands of 495 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the GXO Logistics fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
10.47 B | 5.49 B | 4.09 B | 495 M |
GXO Logistics Investor Information
About 96.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 1.77. 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 1.12. The entity had not issued any dividends in recent years. Based on the key indicators related to GXO Logistics' liquidity, profitability, solvency, and operating efficiency, GXO Logistics is not in a good financial situation at this time. It has a very high probability of going through financial hardship in March.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.0231 | 0.0293 |
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| Total Cash From Operating Activities | 434.1 M | 641.7 M |
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| Operating Income | 250.8 M | 365.7 M |
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GXO Logistics Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. GXO Logistics has an asset utilization ratio of 102.85 percent. This suggests that the Company is making $1.03 for each dollar of assets. An increasing asset utilization means that GXO Logistics is more efficient with each dollar of assets it utilizes for everyday operations.GXO Logistics Ownership Allocation
GXO Logistics has a total of 119.48 Million outstanding shares. The majority of GXO Logistics outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in GXO Logistics to benefit from reduced commissions. Therefore, third-party entities are subject to a different set of regulations than regular investors in GXO Logistics. Please pay attention to any change in the institutional holdings of GXO Logistics as this could imply that something significant has changed or is about to change at the company. Please note that on September 28, 2021, Representative Fred Upton of US Congress acquired $250k to $500k worth of GXO Logistics's common stock.GXO Logistics Profitability Analysis
The company reported the last year's revenue of 9.78 B. Total Income to common stockholders was 229 M with profit before taxes, overhead, and interest of 1.77 B.About GXO Logistics Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of GXO Logistics. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of GXO Logistics based exclusively on its fundamental and basic technical indicators. By analyzing GXO Logistics's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of GXO Logistics's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of GXO Logistics. We calculate exposure to GXO Logistics's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of GXO Logistics's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.6 B | 1 B | |
| Pretax Profit Margin | 0.02 | 0.02 | |
| Operating Profit Margin | 0.03 | 0.02 | |
| Net Profit Margin | 0.02 | 0.01 | |
| Gross Profit Margin | 0.13 | 0.10 |
GXO Logistics Quarterly Retained Earnings |
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GXO Logistics Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 119.5 M | |
| Quarterly Earnings Growth Y O Y | -0.498 | |
| Forward Price Earnings | 13.4409 |
GXO Logistics Current Valuation Indicators
GXO Logistics' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final GXO Logistics' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as GXO Logistics, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use GXO Logistics' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes GXO Logistics' worth.When determining whether GXO Logistics offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of GXO Logistics' 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 Gxo Logistics Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Gxo Logistics Stock: 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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 | Quarterly Revenue Growth 0.278 | Return On Assets |
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.
Please note, there is a significant difference between GXO Logistics' value and its price as these two are different measures arrived at by different 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.