NYSE:XPO
XPO Logistics, Inc (XPO)
Financials 
Technical Analysis 
Sep 5, 2026, 12:00 amThis summary was created by AI, based on 1 opinions in the last 12 months.
XPO Logistics, Inc. is currently experiencing significant momentum, with an impressive 80% increase in its stock price this year. However, a closer examination reveals that it operates with a relatively low free cash flow yield of just 2.5% and a high price-to-earnings (PE) ratio of 40x, raising concerns about its valuation. Given these factors, some experts suggest that it might be prudent to take some profits by selling shares based on its elevated PE ratio. Despite these concerns, analysts maintain a positive outlook for the long-term, highlighting the potential for upside as the company continues to grow and adapt in a competitive logistics market. Investors should weigh this potential against the current valuation metrics when considering their positions in XPO.
It ran into trouble when the roll up stories got into trouble in 2015. They ended up with too much debt. They ended up with fantastic businesses. He got into it early this year. He thought they would stop doing that and let the entity do well without further acquisitions and they did. Its earnings and outlook have improved a lot over the last couple of quarters. He really likes it.
Bruce Tatters(Top Pick Aug 22/16, Down 9.68%) It was just in the news because it sold its truck load business to TransForce here in Canada. They are a logistics company. They also own an LTL division. People thought XPO’s sale was at a low valuation, but he disagrees.
John KimA US logistics company. They will route and ship whatever products for you. This includes where it will be picked up, how it gets transported, and where it is going, as well as handling all the custom forms and way bills that are needed. They also own Conway Trucking which they bought last year in order to do the “last mile”. They’ve reached the inflection where they are starting to generate free cash flow now. Management has guided $500-$800 million of free cash flow in 2018, and that is on a $4 billion market cap company. You are either going to get a 25% upside or it could be a double by 2018.
John KimThis handles freight, last mile globally. It has been an acquisition story where it has been gaining the scale to do logistics businesses globally for major companies. This is going to benefit from all the e-commerce trends. It also has very, very strong organic growth for the next few years, despite a really weak overall freight market. Well-managed. Has incredibly strong earnings growth for the next couple of years.
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(A Top Pick Aug 17/16. Up 21.05%.) A global freight logistics company. One of those businesses in 2015 that got hit really hard because it had done too many acquisitions with a little bit too much debt into early 2016. Likes that it is a very high, free cash flow business. Trading at about 8.5X EBITDA, and growing in the 20%-25% rate. A fantastic business.