XPO Logistics Net Income vs. Current Valuation
| XPO Stock | USD 157.94 0.26 0.16% |
Net Income | First Reported 2002-03-31 | Previous Quarter 150 M | Current Value 95 M | Quarterly Volatility 75.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.19 | 0.0994 |
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For XPO Logistics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of XPO Logistics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well XPO Logistics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between XPO Logistics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of XPO Logistics over time as well as its relative position and ranking within its peers.
XPO |
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 XPO Logistics. If investors know XPO 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 XPO 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 0.123 | Earnings Share 3.08 | Revenue Per Share 69.741 | Quarterly Revenue Growth 0.037 | Return On Assets 0.0632 |
The market value of XPO Logistics is measured differently than its book value, which is the value of XPO that is recorded on the company's balance sheet. Investors also form their own opinion of XPO Logistics' value that differs from its market value or its book value, called intrinsic value, which is XPO 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 XPO Logistics' market value can be influenced by many factors that don't directly affect XPO 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 XPO Logistics' value and its price as these two are different measures arrived at by different means. Investors typically determine if XPO Logistics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, XPO 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.
XPO Logistics Current Valuation vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining XPO Logistics's current stock value. Our valuation model uses many indicators to compare XPO Logistics value to that of its competitors to determine the firm's financial worth. XPO Logistics is rated below average in net income category among its peers. It is rated second in current valuation category among its peers reporting about 115.45 of Current Valuation per Net Income. At this time, XPO Logistics' Net Income 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 XPO Logistics' earnings, one of the primary drivers of an investment's value.XPO Logistics' Earnings Breakdown by Geography
XPO Current Valuation vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
XPO Logistics |
| = | 192 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
XPO Logistics |
| = | 22.17 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.
XPO Current Valuation vs Competition
XPO Logistics is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is at this time estimated at about 124.24 Billion. XPO Logistics retains roughly 22.17 Billion in current valuation claiming about 18% of equities under Industrials industry.
XPO Logistics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in XPO Logistics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, XPO Logistics will eventually generate negative long term returns. The profitability progress is the general direction of XPO Logistics' change in net profit over the period of time. It can combine multiple indicators of XPO 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -217 M | -206.2 M | |
| Operating Income | 438 M | 459.9 M | |
| Income Before Tax | 260 M | 273 M | |
| Total Other Income Expense Net | -178 M | -169.1 M | |
| Net Income | 192 M | 110.5 M | |
| Net Income Applicable To Common Shares | 765.9 M | 804.2 M | |
| Income Tax Expense | 68 M | 71.4 M | |
| Net Income From Continuing Ops | 98 M | 146.2 M | |
| Non Operating Income Net Other | 18.4 M | 9.4 M | |
| Interest Income | 121.5 M | 210.1 M | |
| Net Interest Income | -158 M | -165.9 M | |
| Change To Netincome | 274.9 M | 288.6 M | |
| Net Income Per Share | 1.63 | 1.71 | |
| Income Quality | 3.55 | 3.73 | |
| Net Income Per E B T | 0.73 | 0.85 |
XPO Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on XPO 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 XPO 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 XPO Logistics' important profitability drivers and their relationship over time.
Use XPO 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 XPO 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 XPO Logistics will appreciate offsetting losses from the drop in the long position's value.XPO Logistics Pair Trading
XPO Logistics Pair Trading Analysis
The ability to find closely correlated positions to XPO 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 XPO 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 XPO 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 XPO Logistics to buy it.
The correlation of XPO 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 XPO Logistics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if XPO 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 XPO 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.Use Investing Themes to Complement your XPO Logistics position
In addition to having XPO 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.Did You Try This Idea?
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Companies producing and distributing toys and different gaming products for kids. The Toys theme has 45 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 Toys Theme or any other thematic opportunities.
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Check out Your Current Watchlist. To learn how to invest in XPO Stock, please use our How to Invest in XPO Logistics guide.You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
To fully project XPO Logistics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of XPO 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 XPO Logistics' income statement, its balance sheet, and the statement of cash flows.