QXO Inc. Common Stock (QXO)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

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

I look for businesses that earn good returns on capital and sell at a sensible price. QXO does not yet fit that mold. It distributes roofing and building products, a scale business where purchasing power and route density can matter, but the filed numbers show a company in transition, not a proven compounder. Revenue went from $56.9 million in fiscal 2024 (period ended 2024-12-31) to $6.8 billion in fiscal 2025 (period ended 2025-12-31), yet net income swung from a $28.0 million profit to a $279.4 million loss. In fiscal Q2 2026 (period ended 2026-06-30), revenue was $3.2 billion and net income was -$55.0 million. The FairStock calculations at the 2026-10-13 close of $11.02 show a P/B of 0.86 and negative P/E, with ROE of -4.60% and ROCE of -0.28%. Free cash flow over the trailing twelve months was $141.2 million, but that is only a 1.2% FCF yield on an $11.4 billion market cap. Debt-to-equity is 0.57, Altman Z-Score is 1.06, and Piotroski is 4/9 — not the balance sheet of a fortress. The stock is near the low end of its 52-week range of $10.39 to $27.61, and FairStock scores it 45/100, with a Lynch category of TURNAROUND, based on a loss in the latest year after earlier profits. A low price-to-book can be an opportunity if earnings recover, but so far the growth has come with losses, high EV/EBITDA of 32.69, and a beta of 2.29. I would want evidence of durable profitability before calling this a bargain.

In plain English: QXO distributes roofing and building products in the U.S. and Canada. Sales have grown very fast, but the company is losing money and carries debt, so the business looks weak right now. The stock price is low compared with the company's accounting value, but the losses make it hard to say it is cheap.

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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