GXO Logistics GXO
United StatesIndustrials · Integrated Freight & LogisticsUSD
68.59 USD (+49.1%)
17 analysts
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GXO Logistics is a global provider of contract logistics and supply chain management solutions, operating warehouses and distribution centers for large e-commerce, retail, and industrial companies.
Key points
from its scores- ✕Poor share-price trend1.2
- ✕Little or no dividend1.5
- ✕Fragile balance sheet1.8
AI analysis
bottom line, main risk, context and newsHold or avoid until debt reduction and improved cash flow generation are confirmed; the current leverage is a significant risk in a high-rate environment.
GXO presents a highly leveraged balance sheet (Net Debt/EBITDA of 5.69) and very thin operating margins (2.99%), making it vulnerable to the current rising interest rate environment. Its valuation on forward P/E (13.01) and FCF yield (6.46%) appears attractive, but negative earnings growth (-4.00%) and poor momentum (-10.64%) suggest the market is discounting execution and cycle risks.
The high leverage (Net Debt/EBITDA of 5.69) in a rising interest rate environment, which increases the cost of debt service and limits the company's financial flexibility.
Context and risks
GXO Logistics operates in the logistics and transportation sector, a capital-intensive business with very high leverage (Net Debt/EBITDA of 5.69). The recent rise in US interest rates and the strength of the dollar increase the cost of servicing its debt and pressure its long-duration valuation, a financial risk already reflected in its weak financial health. No specific regulatory, geopolitical, or business model risks are identified beyond its exposure to the consumer and industrial cycle.
Is GXO Logistics stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 19% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 40.7 | 25.4 | +60% |
| EV / EBITDA | 11.3 | 14.5 | −22% |
| Price / book | 1.8 | 4.1 | −56% |
| Price / sales | 0.4 | 2.1 | −81% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.3 out of 10 (median for Industrials: 5.0).
Average analyst target: 68.59 USD, +49.1% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 2.9 (sector 5.8), Growth 4.1 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 40.7
- Forward P/E
- 13.0
- EV / EBITDA
- 11.3
- Price / book
- 1.8
- Price / sales
- 0.4
- PEG
- 1.14
- Market cap
- 5.3B USD
- Enterprise value
- 10.7B USD
Profitability
- ROE
- 4.5%
- ROA
- 2.4%
- ROIC (approx.)
- 4.5%
- Gross margin
- 15.3%
- Operating margin
- 3.0%
- Net margin
- 1.0%
- Free cash flow
- 340.6M USD
- FCF yield
- 6.5%
- Cash conversion
- 36%
Solvency
- Total debt
- 6.1B USD
- Net debt
- 5.4B USD
- Cash
- 769.0M USD
- EBITDA
- 941.0M USD
- Net debt / EBITDA
- 5.69
- Debt / equity
- 202.48
- Current ratio
- 0.79
- Quick ratio
- 0.70
Growth
- Revenue growth
- +4.3%
- Earnings growth
- −4.0%
- EPS (TTM)
- 1.13 USD
- EPS (forward)
- 3.54 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.57
- Analyst consensus
- Strong buy (17)
- Target price
- 68.59 USD
- 52-week range
- 43.61 – 66.85
Recent news
All GXO news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about GXO Logistics
Is GXO Logistics stock cheap or expensive?
On P/E and EV / EBITDA, it trades 19% above the Industrials median on average. Valuation score: 5.3 out of 10 (median for Industrials: 5.0). Average analyst target: 68.59 USD, +49.1% versus the price. This is not investment advice.
What score does GXO Logistics get on MeridIAn Screener?
It scores 3.2 out of 10, rank 2,061 of 2,130 (better than 3% of the companies analysed). Its strongest category is Valuation (5.3) and its weakest, Momentum (1.2). Analysis of 08/10/2026.
What is GXO Logistics's P/E ratio?
Its P/E is 40.7: the share price equals 40.7 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 13.0.
How much is GXO Logistics worth on the stock market?
Its market capitalisation is 5.3B USD and its enterprise value, debt included, is 10.7B USD.
How much debt does GXO Logistics have?
Its net debt (debt minus cash) is 5.4B USD. That is 5.69 times its EBITDA; the Industrials median is 1.58.
Does GXO Logistics pay a dividend?
It pays no dividend, or almost none.
How has GXO Logistics stock performed over the last year?
It has fallen 10.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 43.61 and 66.85 USD. Past performance does not guarantee future results.
What do analysts think of GXO Logistics?
17 analysts cover it; their average recommendation is “Strong buy” and their average target is 68.59 USD (+49.1% versus the price). It is an estimate, not market data.