RXO, Inc. (RXO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-111.6%

-$3.23

vs $27.79 price

Levered DCF

$2.06

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

3.13

Safe zone

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	-21.42×	-10.99×	680.12×	21.77×	16.15×	56.76×	39.62×
P/B	1.38×	1.97×	4.58×	3.41×	2.28×	2.29×	0×
P/S	0.37×	0.7×	0.69×	0.42×	0.52×	0.73×	0.78×
EV / EBITDA	77.29×	-20.37×	31.76×	12.06×	9.72×	18.72×	0×
Gross margin	14.4%	15.3%	16.8%	17.9%	15.7%	16.1%	15.6%
Operating margin	-0.1%	0.7%	1.7%	4.6%	4.1%	1.8%	2.6%
Net margin	-1.7%	-6.4%	0.1%	1.9%	3.2%	1.3%	2.0%
Current ratio	1.27×	1.26×	1.17×	1.25×	1.33×	1.37×	0×
Debt / equity	0.43×	0.41×	0.94×	1.05×	0.21×	0.11×	0×
Interest coverage	-0.2×	1×	2.09×	55×	0×	0×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	-6.5%	-18.0%	0.7%	15.7%	14.0%	4.0%	0.0%
Return on invested capital	-0.3%	1.2%	5.6%	13.5%	11.7%	3.6%	0.0%
Return on assets	-3.1%	-8.5%	0.2%	4.5%	7.3%	2.3%	0.0%
Free cash flow yield	-0.4%	-1.8%	0.9%	12.6%	4.7%	-0.9%	2.7%
Earnings yield	-4.7%	-9.1%	0.1%	4.6%	6.1%	1.8%	2.5%
Enterprise value	$2.8B	$3.8B	$3.3B	$2.5B	$2.6B	$2.5B	$0
Net debt / EBITDA	18.14×	-3.36×	5.37×	2.48×	0.73×	0.35×	0×
Cash conversion cycle (days)	38	45	23	22	31	33	0