QXO QXO
United StatesIndustrials · Industrial DistributionUSD
28.32 USD (+150.4%)
19 analysts
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QXO, Inc. is an industrial distribution company operating in the sector of industrial supplies and equipment, although its current business model shows negative profitability and high debt.
Key points
from its scores- ✓Strong growth10.0
- ✕Poor share-price trend0.8
- ✕Unfavourable risk and backdrop0.8
- ✕Little competitive advantage1.0
AI analysis
bottom line, main risk, context and newsQXO's fundamentals are very weak and high leverage in a rising rate environment poses a significant financial risk. There are no signs that the situation will improve in the short term.
QXO presents a very weak financial profile: extreme leverage (Net Debt/EBITDA of 7.25x), negative operating margins (-0.92%), and negative return on capital (ROE of -4.60%). Despite strong revenue growth (70.30%), this does not translate into profits, and the valuation, although seemingly moderate, is a trap given the business deterioration. Momentum is very negative (-33.75% over 12 months), reflecting market distrust.
The main risk is the high financial leverage (Net Debt/EBITDA of 7.25x) combined with negative operating profitability, making the company extremely vulnerable to an increase in interest rates or any further deterioration of the business.
Context and risks
QXO operates in the industrial distribution sector, a business with traditionally tight margins and high sensitivity to the economic cycle. Its high leverage (Net Debt/EBITDA of 7.25x) and negative operating margin make it vulnerable to a rising interest rate environment, which increases the cost of servicing its debt and further pressures its profitability. The weak momentum reflects market distrust in its ability to generate value in this context.
Is QXO stock cheap or expensive?
at the analysis dateOn EV / EBITDA, it trades 123% above the Industrials median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| EV / EBITDA | 32.3 | 14.5 | +123% |
| Price / book | 0.9 | 4.1 | −78% |
| Price / sales | 1.2 | 2.1 | −42% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 2.8 out of 10 (median for Industrials: 5.0).
Average analyst target: 28.32 USD, +150.4% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 1.0 (sector 5.8), Growth 10.0 (sector 6.6).
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
- Forward P/E
- 17.7
- EV / EBITDA
- 32.3
- Price / book
- 0.9
- Price / sales
- 1.2
- PEG
- 0.95
- Market cap
- 11.7B USD
- Enterprise value
- 19.0B USD
Profitability
- ROE
- −4.6%
- ROA
- −0.3%
- ROIC (approx.)
- −0.5%
- Gross margin
- 24.5%
- Operating margin
- −0.9%
- Net margin
- −5.2%
- Free cash flow
- −2.5B USD
- FCF yield
- −21.7%
- Cash conversion
- −434%
Solvency
- Total debt
- 7.0B USD
- Net debt
- 4.3B USD
- Cash
- 2.8B USD
- EBITDA
- 587.8M USD
- Net debt / EBITDA
- 7.25
- Debt / equity
- 57.03
- Current ratio
- 4.12
- Quick ratio
- 2.04
Growth
- Revenue growth
- +70.3%
- EPS (TTM)
- −0.89 USD
- EPS (forward)
- 0.64 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 2.28
- Analyst consensus
- Strong buy (19)
- Target price
- 28.32 USD
- 52-week range
- 10.77 – 27.61
Recent news
All QXO news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about QXO
Is QXO stock cheap or expensive?
On EV / EBITDA, it trades 123% above the Industrials median. Valuation score: 2.8 out of 10 (median for Industrials: 5.0). Average analyst target: 28.32 USD, +150.4% versus the price. This is not investment advice.
What score does QXO get on MeridIAn Screener?
It scores 2.5 out of 10, rank 2,113 of 2,130 (better than 1% of the companies analysed). Its strongest category is Growth (10.0) and its weakest, Momentum (0.8). Analysis of 08/10/2026.
How much is QXO worth on the stock market?
Its market capitalisation is 11.7B USD and its enterprise value, debt included, is 19.0B USD.
How much debt does QXO have?
Its net debt (debt minus cash) is 4.3B USD. That is 7.25 times its EBITDA; the Industrials median is 1.58.
Does QXO pay a dividend?
It pays no dividend, or almost none.
How has QXO stock performed over the last year?
It has fallen 39.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 10.77 and 27.61 USD. Past performance does not guarantee future results.
What do analysts think of QXO?
19 analysts cover it; their average recommendation is “Strong buy” and their average target is 28.32 USD (+150.4% versus the price). It is an estimate, not market data.