📊 XPO Key Takeaways
Is XPO, Inc. (XPO) a Good Investment?
XPO faces structural headwinds with stagnant 1.1% revenue growth and declining EPS despite profitability, indicating margin compression in a capital-intensive transportation sector. Critical liquidity concerns (current ratio 0.99x) combined with elevated leverage (1.71x debt/equity) and minimal returns (ROE 5.5%, ROA 1.2%) present material downside risk.
XPO, Inc. Key Strengths (XPO)
- Positive free cash flow generation of $72M demonstrates underlying operational viability
- Adequate interest coverage ratio of 3.0x indicates ability to service debt obligations
- Profitability maintained with $101M net income despite challenging operating environment
XPO Stock Risks: XPO, Inc. Investment Risks
- Working capital deficit risk with current ratio of 0.99x below 1.0x safety threshold signals liquidity strain
- Earnings per share contracted 18.3% YoY despite flat revenue growth, indicating margin deterioration
- High leverage of 1.71x debt/equity ratio with $3.2B long-term debt limits financial flexibility for capex or downturns
Key Metrics to Watch
- Current and quick ratios - trend deterioration signals cash flow stress
- EPS and operating margin trend - need reversal of 18.3% YoY decline
- Debt/equity ratio and free cash flow conversion - monitor deleveraging trajectory
XPO, Inc. (XPO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.4% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
XPO Profit Margin, ROE & Profitability Analysis
XPO vs Transportation Sector: How XPO, Inc. Compares
How XPO, Inc. compares to Transportation sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is XPO, Inc. Stock Overvalued? XPO Valuation Analysis 2026
Based on fundamental analysis, XPO, Inc. shows some fundamental concerns relative to the Transportation sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
XPO, Inc. Balance Sheet: XPO Debt, Cash & Liquidity
XPO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: XPO, Inc.'s revenue has declined by 36% over the 5-year period, indicating business contraction. The most recent EPS of $1.60 reflects profitable operations.
XPO Revenue Growth, EPS Growth & YoY Performance
XPO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.0B | $69.0M | $0.58 |
| Q3 2025 | $2.1B | $82.0M | $0.68 |
| Q2 2025 | $2.1B | $106.0M | $0.89 |
| Q1 2025 | $2.0B | $67.0M | $0.56 |
| Q3 2024 | $2.0B | $84.0M | $0.71 |
| Q2 2024 | $1.9B | $33.0M | $0.28 |
| Q1 2024 | $1.9B | $14.0M | $0.13 |
| Q3 2023 | $1.9B | $84.0M | $0.71 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
XPO, Inc. Dividends, Buybacks & Capital Allocation
XPO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for XPO, Inc. (CIK: 0001166003)
📋 Recent SEC Filings
❓ Frequently Asked Questions about XPO
What is the AI rating for XPO?
XPO, Inc. (XPO) has an AI grade of B with 42% confidence, based on fundamental analysis of SEC EDGAR filings.
What are XPO's key strengths?
Claude: Positive free cash flow generation of $72M demonstrates underlying operational viability. Adequate interest coverage ratio of 3.0x indicates ability to service debt obligations.
What are the risks of investing in XPO?
Claude: Working capital deficit risk with current ratio of 0.99x below 1.0x safety threshold signals liquidity strain. Earnings per share contracted 18.3% YoY despite flat revenue growth, indicating margin deterioration.
What is XPO's revenue and growth?
XPO, Inc. reported revenue of $2.1B.
Does XPO pay dividends?
XPO, Inc. pays dividends, with $3.0M distributed to shareholders in the trailing twelve months.
Where can I find XPO SEC filings?
Official SEC filings for XPO, Inc. (CIK: 0001166003) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is XPO's EPS?
XPO, Inc. has a diluted EPS of $0.85.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is XPO's fundamental grade?
Based on our AI fundamental analysis in June 2026, XPO, Inc. has a B grade with 42% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is XPO stock overvalued or undervalued?
Valuation metrics for XPO: ROE of 5.5% (sector avg: 18%), net margin of 4.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is XPO's AI grade for 2026?
Our dual AI analysis gives XPO, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is XPO's free cash flow?
XPO, Inc.'s operating cash flow is $183.0M, with capital expenditures of $111.0M. FCF margin is 3.4%.
How does XPO compare to other Transportation stocks?
Vs Transportation sector averages: Net margin 4.8% (avg: 10%), ROE 5.5% (avg: 18%), current ratio 0.99 (avg: 1).
Is XPO, Inc. carrying too much debt?
XPO has a debt-to-equity ratio of 1.71x, which is above the Transportation sector average of 1x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.