Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin3.2%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin0.2%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt182.9 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$3.2B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$587M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
C
Free Cash Flow$110M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income1012.5%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$813M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit11.6%
Operating Margin3.2%
Net Margin0.2%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
11.6%▼
12.3%▼
14.1%▲
13.6%•
N/A
Operating Margin %
3.2%▼
3.2%▼
3.9%▲
3.7%•
N/A
Net Income %
0.2%▼
1.1%▼
2.3%▲
2.2%•
N/A
Diluted EPS
0.28▼
1.12▼
1.92▲
1.67•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$12.3B
$11.3B
$9.5B
$9.2B
N/A
Total Debt
$5.9B▲
$5.2B▲
$4.1B▼
$4.2B•
N/A
Working Capital
-$587M▼
-$548M▼
-$58M▲
-$104M•
N/A
Years to Pay Debt
182.94
38.63
17.84
21.42
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$110M▼
$190M▼
$284M▲
$200M•
N/A
Owner Earnings
$813M
$908M
$864M
$868M
N/A
CapEx % of Net Income
1,012.5%
267.9%
119.7%
173.6%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
-42,630
-8,904
-8,188
-22,506
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
897,000
823,000
746,000
715,000
Total Unusual Items
-203,000
-159,000
-66,000
-93,000
Total Unusual Items Excluding Goodwill
-203,000
-159,000
-66,000
-93,000
Net Income From Continuing Operation Net Minority Interest
32,000
134,000
229,000
197,000
Reconciled Depreciation
457,000
415,000
361,000
329,000
Reconciled Cost Of Revenue
11,647,000
10,268,000
8,396,000
7,772,000
EBITDA
694,000
664,000
680,000
622,000
EBIT
237,000
249,000
319,000
293,000
Net Interest Income
-133,000
-103,000
-53,000
-29,000
Interest Expense
133,000
103,000
53,000
29,000
Normalized Income
192,370
284,096
286,812
267,494
Net Income From Continuing And Discontinued Operation
32,000
134,000
229,000
197,000
Total Expenses
12,753,000
11,329,000
9,394,000
8,658,000
Total Operating Income As Reported
245,000
218,000
318,000
242,000
Diluted Average Shares
116,303
119,798
119,490
117,616
Basic Average Shares
115,677
119,413
118,908
117,050
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
32,000
134,000
229,000
197,000
Net Income Common Stockholders
32,000
134,000
229,000
197,000
Net Income
32,000
134,000
229,000
197,000
Minority Interests
-4,000
-4,000
-4,000
-3,000
Net Income Including Noncontrolling Interests
36,000
138,000
233,000
200,000
Net Income Continuous Operations
36,000
138,000
233,000
200,000
Tax Provision
68,000
8,000
33,000
64,000
Pretax Income
104,000
146,000
266,000
264,000
Other Income Expense
-188,000
-131,000
-65,000
-42,000
Other Non Operating Income Expenses
15,000
28,000
1,000
51,000
Special Income Charges
-180,000
-162,000
-66,000
-93,000
Gain On Sale Of Business
-34,000
-2,000
-7,000
Other Special Charges
65,000
59,000
Restructuring And Mergern Acquisition
81,000
101,000
59,000
93,000
Gain On Sale Of Security
-23,000
3,000
-9,000
14,000
Net Non Operating Interest Income Expense
-133,000
-103,000
-53,000
-29,000
Interest Expense Non Operating
133,000
103,000
53,000
29,000
Operating Income
425,000
380,000
384,000
335,000
Operating Expense
1,106,000
1,061,000
998,000
886,000
Depreciation Amortization Depletion Income Statement
335,000
Depreciation And Amortization In Income Statement
335,000
Selling General And Administration
1,106,000
1,061,000
998,000
886,000
Gross Profit
1,531,000
1,441,000
1,382,000
1,221,000
Cost Of Revenue
11,647,000
10,268,000
8,396,000
7,772,000
Total Revenue
13,178,000
11,709,000
9,778,000
8,993,000
Operating Revenue
13,178,000
11,709,000
9,778,000
8,993,000
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
5,356
Ordinary Shares Number
114,512
119,496
119,057
118,728
Share Issued
119,868
119,496
119,057
118,728
Net Debt
2,211,000
2,218,000
1,179,000
1,311,000
Total Debt
5,854,000
5,176,000
4,086,000
4,219,000
Tangible Book Value
-1,707,000
-1,532,000
-546,000
-653,000
Invested Capital
6,048,000
5,634,000
4,559,000
4,451,000
Working Capital
-587,000
-548,000
-58,000
-104,000
Net Tangible Assets
-1,707,000
-1,532,000
-546,000
-653,000
Capital Lease Obligations
2,789,000
2,545,000
2,439,000
2,413,000
Common Stock Equity
2,983,000
3,003,000
2,912,000
2,645,000
Total Capitalization
5,602,000
5,524,000
4,532,000
4,384,000
Total Equity Gross Minority Interest
3,015,000
3,035,000
2,946,000
2,678,000
Minority Interest
32,000
32,000
34,000
33,000
Stockholders Equity
2,983,000
3,003,000
2,912,000
2,645,000
Gains Losses Not Affecting Retained Earnings
-201,000
-313,000
-239,000
-254,000
Other Equity Adjustments
-201,000
-313,000
-239,000
-254,000
Treasury Stock
202,000
0
Retained Earnings
718,000
686,000
552,000
323,000
Additional Paid In Capital
2,667,000
2,629,000
2,598,000
2,575,000
Capital Stock
1,000
1,000
1,000
1,000
Common Stock
1,000
1,000
1,000
1,000
Total Liabilities Net Minority Interest
9,247,000
8,231,000
6,561,000
6,541,000
Total Non Current Liabilities Net Minority Interest
5,372,000
5,042,000
3,935,000
4,009,000
Other Non Current Liabilities
709,000
623,000
473,000
417,000
Long Term Debt And Capital Lease Obligation
4,663,000
4,419,000
3,462,000
3,592,000
Long Term Capital Lease Obligation
2,044,000
1,898,000
1,842,000
1,853,000
Long Term Debt
2,619,000
2,521,000
1,620,000
1,739,000
Current Liabilities
3,875,000
3,189,000
2,626,000
2,532,000
Other Current Liabilities
434,000
385,000
327,000
193,000
Current Debt And Capital Lease Obligation
1,191,000
757,000
624,000
627,000
Current Capital Lease Obligation
745,000
647,000
597,000
560,000
Current Debt
446,000
110,000
27,000
67,000
Other Current Borrowings
446,000
110,000
27,000
67,000
Payables And Accrued Expenses
2,250,000
2,047,000
1,675,000
1,712,000
Current Accrued Expenses
1,238,000
1,058,000
830,000
860,000
Interest Payable
22,000
20,000
9,000
Payables
1,012,000
989,000
845,000
852,000
Total Tax Payable
254,000
213,000
136,000
135,000
Accounts Payable
758,000
776,000
709,000
717,000
Total Assets
12,262,000
11,266,000
9,507,000
9,219,000
Total Non Current Assets
8,974,000
8,625,000
6,939,000
6,791,000
Other Non Current Assets
570,000
601,000
327,000
306,000
Goodwill And Other Intangible Assets
4,690,000
4,535,000
3,458,000
3,298,000
Other Intangible Assets
909,000
986,000
567,000
570,000
Goodwill
3,781,000
3,549,000
2,891,000
2,728,000
Net PPE
3,714,000
3,489,000
3,154,000
3,187,000
Accumulated Depreciation
-2,126,000
-1,732,000
-1,545,000
-1,297,000
Gross PPE
5,840,000
5,221,000
4,699,000
4,484,000
Other Properties
3,842,000
3,442,000
3,226,000
3,185,000
Machinery Furniture Equipment
1,409,000
1,264,000
1,033,000
935,000
Buildings And Improvements
364,000
326,000
Land And Improvements
0
7,000
Properties
589,000
515,000
440,000
364,000
Current Assets
3,288,000
2,641,000
2,568,000
2,428,000
Other Current Assets
406,000
429,000
347,000
286,000
Receivables
2,028,000
1,799,000
1,753,000
1,647,000
Accounts Receivable
2,028,000
1,799,000
1,753,000
1,647,000
Allowance For Doubtful Accounts Receivable
-15,000
-15,000
-11,000
-12,000
Gross Accounts Receivable
2,043,000
1,814,000
1,764,000
1,659,000
Cash Cash Equivalents And Short Term Investments
854,000
413,000
468,000
495,000
Cash And Cash Equivalents
854,000
413,000
468,000
495,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
110,000
190,000
284,000
200,000
Repurchase Of Capital Stock
-200,000
0
0
Repayment Of Debt
-255,000
-453,000
-169,000
-115,000
Issuance Of Debt
577,000
1,096,000
0
917,000
Capital Expenditure
-324,000
-359,000
-274,000
-342,000
Interest Paid Supplemental Data
128,000
97,000
57,000
34,000
Income Tax Paid Supplemental Data
59,000
43,000
84,000
111,000
End Cash Position
857,000
485,000
470,000
495,000
Beginning Cash Position
485,000
470,000
495,000
333,000
Effect Of Exchange Rate Changes
23,000
-13,000
13,000
-18,000
Changes In Cash
349,000
28,000
-38,000
180,000
Financing Cash Flow
111,000
636,000
-186,000
787,000
Cash Flow From Continuing Financing Activities
111,000
636,000
-186,000
787,000
Net Other Financing Charges
-11,000
-7,000
-17,000
-15,000
Net Common Stock Issuance
-200,000
0
0
Common Stock Payments
-200,000
0
0
Net Issuance Payments Of Debt
322,000
643,000
-169,000
802,000
Net Long Term Debt Issuance
322,000
643,000
-169,000
802,000
Long Term Debt Payments
-255,000
-453,000
-169,000
-115,000
Long Term Debt Issuance
577,000
1,096,000
0
917,000
Investing Cash Flow
-196,000
-1,157,000
-410,000
-1,149,000
Cash Flow From Continuing Investing Activities
-196,000
-1,157,000
-410,000
-1,149,000
Net Other Investing Changes
3,000
-2,000
8,000
Net Investment Purchase And Sale
-24,000
4,000
-3,000
21,000
Sale Of Investment
4,000
21,000
0
Purchase Of Investment
-24,000
-3,000
Net Business Purchase And Sale
0
-863,000
-149,000
-876,000
Sale Of Business
32,000
Purchase Of Business
0
-863,000
-149,000
-876,000
Net PPE Purchase And Sale
149,000
61,000
18,000
40,000
Sale Of PPE
149,000
61,000
18,000
40,000
Capital Expenditure Reported
-324,000
-359,000
-274,000
-342,000
Operating Cash Flow
434,000
549,000
558,000
542,000
Cash Flow From Continuing Operating Activities
434,000
549,000
558,000
542,000
Change In Working Capital
-112,000
-6,000
-53,000
4,000
Change In Other Current Assets
21,000
-54,000
28,000
24,000
Change In Payables And Accrued Expense
-45,000
-70,000
-64,000
51,000
Change In Accrued Expense
16,000
-93,000
-61,000
6,000
Change In Payable
-61,000
23,000
-3,000
45,000
Change In Account Payable
-61,000
23,000
-3,000
45,000
Change In Receivables
-88,000
118,000
-17,000
-71,000
Changes In Account Receivables
-88,000
118,000
-17,000
-71,000
Other Non Cash Items
10,000
1,000
23,000
-17,000
Stock Based Compensation
47,000
39,000
35,000
33,000
Asset Impairment Charge
25,000
0
0
Deferred Tax
-29,000
-38,000
-41,000
-7,000
Deferred Income Tax
-29,000
-38,000
-41,000
-7,000
Depreciation Amortization Depletion
457,000
415,000
361,000
329,000
Depreciation And Amortization
457,000
415,000
361,000
329,000
Amortization Cash Flow
119,000
108,000
71,000
68,000
Amortization Of Intangibles
119,000
108,000
71,000
68,000
Depreciation
338,000
307,000
290,000
261,000
Net Income From Continuing Operations
36,000
138,000
233,000
200,000
2/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $3.0B
Warren's Owner Earnings
$813M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
2/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$13.2B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
0.85x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $1.67 to $0.28 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
-83.2% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $13.2Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 0.85xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $1.67 to $0.28 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what GXO is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
4.0%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
1,012.5%
267.9%
119.7%
173.6%
N/A
Repurchase of Capital Stock
-$200M
$0M
$0M
N/A
N/A
Free Cash Flow
$110M▼
$190M▼
$284M▲
$200M•
N/A•
Warren's Owner Earnings
$813M
$908M
$864M
$868M
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare GXO against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
GXO (GXO) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 11.6%. Operating margin: 3.2%. Net margin: 0.2%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.