GXO Logistics Gross Profit vs. Current Valuation

GXO Stock  USD 50.85  8.15  13.81%   
Based on GXO Logistics' profitability indicators, GXO Logistics' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess GXO Logistics' ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2010-12-31
Previous Quarter
1.4 B
Current Value
B
Quarterly Volatility
229.3 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, GXO Logistics' Price To Sales Ratio is very stable compared to the past year. As of the 4th of December 2024, Days Sales Outstanding is likely to grow to 74.47, while Sales General And Administrative To Revenue is likely to drop 0.07. At this time, GXO Logistics' Net Income Applicable To Common Shares is very stable compared to the past year. As of the 4th of December 2024, Change To Netincome is likely to grow to about 11.4 M, though Accumulated Other Comprehensive Income is likely to grow to (227.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.0960.1413
Way Down
Slightly volatile
Operating Profit Margin0.02310.0325
Way Down
Slightly volatile
For GXO Logistics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GXO Logistics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GXO Logistics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GXO Logistics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GXO Logistics over time as well as its relative position and ranking within its peers.
  

GXO Logistics' Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
To learn how to invest in GXO Stock, please use our How to Invest in GXO Logistics guide.
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
92.626
Quarterly Revenue Growth
0.278
Return On Assets
0.0223
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.

GXO Logistics Current Valuation vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining GXO Logistics's current stock value. Our valuation model uses many indicators to compare GXO Logistics value to that of its competitors to determine the firm's financial worth.
GXO Logistics is rated # 4 in gross profit category among its peers. It also is rated # 4 in current valuation category among its peers reporting about  7.87  of Current Valuation per Gross Profit. At this time, GXO Logistics' Gross Profit 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 GXO Logistics' earnings, one of the primary drivers of an investment's value.

GXO Logistics' Earnings Breakdown by Geography

GXO Current Valuation vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

GXO Logistics

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.55 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

GXO Logistics

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
12.2 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

GXO Current Valuation vs Competition

GXO Logistics is rated # 4 in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 76 Billion. GXO Logistics retains roughly 12.2 Billion in current valuation claiming about 16% of equities under Industrials industry.

GXO Logistics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in GXO Logistics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GXO Logistics will eventually generate negative long term returns. The profitability progress is the general direction of GXO Logistics' change in net profit over the period of time. It can combine multiple indicators of GXO Logistics, 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-239 M-227.1 M
Net Interest Income-51 M-48.5 M
Interest Income26.1 M21.9 M
Operating Income318 M250.8 M
Net Income From Continuing Ops206 M131.3 M
Income Before Tax266 M168.8 M
Total Other Income Expense Net-52 M-49.4 M
Net Income Applicable To Common Shares226.6 M237.9 M
Net Income229 M135.5 M
Income Tax Expense33 M32.6 M
Non Operating Income Net Other58.6 M40.7 M
Change To Netincome8.1 M11.4 M
Net Income Per Share 1.93  2.02 
Income Quality 2.44  2.56 
Net Income Per E B T 0.86  1.04 

GXO Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on GXO Logistics. 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 GXO Logistics 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 GXO Logistics' important profitability drivers and their relationship over time.

Use GXO Logistics 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 GXO Logistics 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 GXO Logistics will appreciate offsetting losses from the drop in the long position's value.

GXO Logistics Pair Trading

GXO Logistics Pair Trading Analysis

The ability to find closely correlated positions to GXO Logistics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GXO Logistics 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 GXO Logistics - 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 GXO Logistics to buy it.
The correlation of GXO Logistics 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 GXO Logistics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GXO Logistics 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 GXO Logistics 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 GXO Logistics position

In addition to having GXO Logistics 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.

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Hybrid Mix Funds
Hybrid Mix Funds Theme
Funds or Etfs that are made of portfolios of stocks, bonds, or cash instruments with different maturity horizons and characteristics. The Hybrid Mix Funds theme has 40 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 Hybrid Mix Funds Theme or any other thematic opportunities.
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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 learn how to invest in GXO Stock, please use our How to Invest in GXO Logistics guide.
You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
To fully project GXO Logistics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of GXO Logistics 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 GXO Logistics' income statement, its balance sheet, and the statement of cash flows.
Potential GXO Logistics investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although GXO Logistics investors may work on each financial statement separately, they are all related. The changes in GXO Logistics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on GXO Logistics'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.