GXO Logistics Inc. Common Stock (GXO)

FairStock Score: 14/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $46.50 on 2026-10-13, GXO is a $5.3B logistics operator with 1,043 facilities and 150,000 employees. The business has scale: revenue rose from $9.8B in FY2023 to $11.7B in FY2024 and $13.2B in FY2025. But profits have not followed. Net income fell from $229.0M in FY2023 to $134.0M in FY2024 and just $32.0M in FY2025. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $3.4B while net income was only $25.0M, a 0.73% margin; in fiscal Q2 2025, the quarter ended 2025-06-30, net income was $26.0M. That is not the earning power I look for. FairStock's calculations reinforce the concern: P/E 41.15, P/B 1.79, ROE 4.50%, ROCE 2.42%, D/E 2.02, and Altman Z-Score 0.65. The Graham Number is $25.73, meaning the price is about 80.7% above that conservative anchor. The Lynch category is SLOW GROWER — Shrinking, with profit down 32.4% a year over four years and revenue growth of 13.5%. Free cash flow is $180.0M, a 3.4% yield, and EV/EBITDA is 13.01. The FairStock Score is 14/100, and beta is 1.54, so this is not a defensive issue. There may be switching costs in logistics contracts, but low margins, high leverage, and weak returns on capital suggest no durable moat. The stock may be discounting a recovery, but I see no margin of safety.

In plain English: GXO runs warehouses and supply-chain services for other companies around the world. Sales are growing, but profits have become very thin and the company uses a lot of debt, so the business looks weak on profitability. At the recent price near $46.50, the stock looks expensive compared with its earnings and a conservative value estimate.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer