RXO Inc
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RXO Inc AI Insights
Informational only. Not investment advice.Snapshot
- Goodwill of 1.1B is 71% of equity (1.6B) with negative tangible book value (-6M) - significant impairment risk if freight downturn persists[Goodwill]
- Operating margin TTM of 0.19% vs industry median -4.8% - barely profitable but outperforming distressed sector[Operating Margin TTM]
- EPS growth 3Y of -81% with negative FCF (-18M TTM) signals structural cash generation challenges[EPS Growth 3Y TTM]
Watch Triggers
- Free Cash Flow TTM: Turns positive for 2 consecutive quarters — Validates operating model can self-fund; current -18M burn rate unsustainable
- Operating Margin TTM: Exceeds 2% sustained — 10x improvement from current 0.19% would signal freight cycle inflection
- Cash and Equivalents: Falls below 15M or debt covenant breach — 25M cash cushion thin vs 34M annual interest; liquidity crisis risk
Bull Case
Asset turnover of 1.8x (3.3x industry median) with 14.5% gross margin TTM shows efficient capital-light model that can scale rapidly when freight rates recover
P/S of 0.44x vs industry median 0.99x prices in current distress; debt/equity of 0.43 provides balance sheet flexibility for cycle upturn
Bear Case
Cash of only 25M with negative FCF (-18M TTM) and 682M total debt creates liquidity risk if downturn extends; interest expense 34M exceeds operating income 11M
Negative tangible book (-6M) means 1.6B equity is entirely goodwill/intangibles; any impairment directly destroys shareholder value
Bull vs Bear Balance
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Forward Thesis
Margin recovery to 3%+ operating margin as freight cycle normalizes would drive 15x earnings improvement
- Asset-light brokerage model has high operating leverage
- Revenue of 5.9B TTM provides scale for margin expansion
- Industry consolidation reducing capacity
Valuation Context
Caveats
Public Strategies Rankings
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RXO Fundamentals
| Metric | Value | YoY Growth | Industry Percentile |
|---|---|---|---|
$2.85B | — | ||
$3.51B | — | ||
1,656 | — | ||
$5.94B | +53.8% | — | |
$0.01 | — | ||
0.19% | -0.8% | — | |
-1.33% | +5.5% | — | |
$-18.0M | — | ||
-0.05 | +18.6% | — | |
Beta 5Y (Monthly) | unknown | — |
RXO Dividend History
RXO Stock Splits
RXO SEC Filings
| Filing Date | Report Date | Report Type | Filing Link |
|---|---|---|---|
11/06/25 | 09/30/25 | 10-Q | |
08/07/25 | 06/30/25 | 10-Q | |
05/07/25 | 03/31/25 | 10-Q | |
02/27/25 | 12/31/24 | Unknown | |
11/07/24 | 09/30/24 | 10-Q | |
08/07/24 | 06/30/24 | 10-Q | |
05/07/24 | 03/31/24 | 10-Q | |
02/13/24 | 12/31/23 | 10-K | |
11/07/23 | 09/30/23 | 10-Q | |
08/02/23 | 06/30/23 | 10-Q | |
05/03/23 | 03/31/23 | 10-Q | |
02/24/23 | 12/31/22 | 10-K | |
11/30/22 | 09/30/22 | 10-Q | |
10/13/22 | 06/30/22 | 10-12B/A | |
05/03/23 | 03/31/22 | 10-Q | |
10/13/22 | 12/31/21 | 10-12B/A | |
11/30/22 | 09/30/21 | 10-Q | |
10/13/22 | 06/30/21 | 10-12B/A |