XPO Inc. Common Stock (XPO)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

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

I look for durable businesses bought at a sensible price, and XPO demands caution. It is a cyclical trucking operator, as FairStock categorizes it, with North American less-than-truckload and European transportation segments. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.4B and net income was $162.0M, or diluted EPS of $1.36. That compares with fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $2.1B, net income $106.0M, and diluted EPS $0.89. The recent momentum is real. Piotroski F-Score of 9/9 and ROE of 21.59% also suggest improving fundamentals. But the full-year picture is less smooth: FY2025, ended 2025-12-31, had net income of $316.0M and diluted EPS of $2.64, down from FY2024 net income of $387.0M and diluted EPS of $3.23. The balance sheet carries a D/E of 2.06, ROCE is only 6.44%, and Altman Z-Score is 2.59. At the $181.15 close on 2026-10-13, FairStock calculations show P/E 53.28, P/B 10.81, EV/EBITDA 19.33, Graham Number $35.81, and margin of safety -405.86%. FCF yield is 2.8%. PEG of 1.01 may look reasonable if growth persists, but cyclical earnings and leverage mean the price already assumes a lot. FairStock Score is 35/100. The business is profitable and improving, but it is not a stable consumer staple; it is a capital-intensive transport network whose earnings swing with freight demand. The North American LTL density may be an advantage, but the numbers do not yet give a wide margin of safety.

In plain English: XPO runs freight transportation and trucking services in North America and Europe. The latest reported quarter showed higher sales and profit than a year earlier, and the company is profitable, but it uses a lot of debt and the stock price looks expensive compared with its profits and accounting value. Because it is a trucking business, results tend to rise and fall with the economy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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