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 Margin8.9%
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 Margin3.9%
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
D
Years to Pay Off Debt12.9 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$75M
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$329M
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 Income207.9%
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$1.5B
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 Profit12.0%
Operating Margin8.9%
Net Margin3.9%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
12.0%▲
11.3%▲
9.9%▲
9.5%•
N/A
Operating Margin %
8.9%▲
8.7%▲
7.0%▲
6.3%•
N/A
Net Income %
3.9%▼
4.8%▲
2.4%▼
8.6%•
N/A
Diluted EPS
2.64▼
3.23▲
1.60▼
5.76•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$8.2B
$7.7B
$7.5B
$6.3B
N/A
Total Debt
$4.1B▼
$4.1B▲
$4.1B▲
$3.2B•
N/A
Working Capital
$75M▼
$85M▲
$3M▼
$123M•
N/A
Years to Pay Debt
12.94
10.64
21.76
4.87
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$329M▲
$19M▲
-$851M▼
$311M•
N/A
Owner Earnings
$1.5B
$1.7B
$2.2B
$1.6B
N/A
CapEx % of Net Income
207.9%
203.9%
811.1%
78.2%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
-21,684
-7,240
-33,800
-43,186
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
1,255,000
1,226,000
990,000
936,000
Total Unusual Items
-78,000
-40,000
-130,000
-151,000
Total Unusual Items Excluding Goodwill
-78,000
-40,000
-130,000
-151,000
Net Income From Continuing Operation Net Minority Interest
316,000
387,000
192,000
184,000
Reconciled Depreciation
521,000
490,000
432,000
392,000
Reconciled Cost Of Revenue
7,178,000
7,157,000
6,974,000
6,988,000
EBITDA
703,000
EBIT
656,000
696,000
428,000
393,000
Net Interest Income
-219,000
-223,000
-168,000
-135,000
Interest Expense
219,000
223,000
168,000
135,000
Normalized Income
372,316
419,760
288,200
291,814
Net Income From Continuing And Discontinued Operation
316,000
387,000
189,000
666,000
Total Expenses
7,428,000
7,371,000
7,201,000
7,229,000
Total Operating Income As Reported
656,000
660,000
438,000
377,000
Diluted Average Shares
119,000
120,000
118,000
116,000
Basic Average Shares
118,000
116,000
116,000
115,000
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
316,000
387,000
189,000
666,000
Net Income Common Stockholders
316,000
387,000
189,000
666,000
Net Income
316,000
387,000
189,000
666,000
Minority Interests
0
0
-5,000
Net Income Including Noncontrolling Interests
316,000
387,000
189,000
666,000
Net Income Discontinuous Operations
0
0
-3,000
482,000
Net Income Continuous Operations
316,000
387,000
192,000
184,000
Tax Provision
121,000
86,000
68,000
74,000
Pretax Income
437,000
473,000
260,000
258,000
Other Income Expense
-72,000
-3,000
-115,000
-96,000
Other Non Operating Income Expenses
6,000
37,000
15,000
55,000
Special Income Charges
-78,000
-40,000
-130,000
-151,000
Gain On Sale Of Ppe
17,000
40,000
5,000
60,000
Other Special Charges
-7,000
33,000
39,000
54,000
Impairment Of Capital Assets
0
0
64,000
0
Restructuring And Mergern Acquisition
102,000
80,000
102,000
108,000
Gain On Sale Of Security
2,000
Net Non Operating Interest Income Expense
-219,000
-223,000
-168,000
-135,000
Interest Expense Non Operating
219,000
223,000
168,000
135,000
Operating Income
729,000
701,000
543,000
489,000
Operating Expense
250,000
214,000
227,000
241,000
Other Taxes
83,000
80,000
60,000
58,000
Selling General And Administration
167,000
134,000
167,000
183,000
General And Administrative Expense
167,000
134,000
167,000
183,000
Insurance And Claims
167,000
134,000
167,000
183,000
Gross Profit
979,000
915,000
770,000
730,000
Cost Of Revenue
7,178,000
7,157,000
6,974,000
6,988,000
Total Revenue
8,157,000
8,072,000
7,744,000
7,718,000
Operating Revenue
8,157,000
8,072,000
7,744,000
7,718,000
Balance Sheet
2025
2024
2023
2022
2021
Ordinary Shares Number
117,384
117,174
115,973
115,000
Share Issued
117,384
117,174
115,973
115,000
Net Debt
3,003,000
3,141,000
2,992,000
2,072,000
Total Debt
4,090,000
4,117,000
4,113,000
3,245,000
Tangible Book Value
3,000
-221,000
-654,000
-867,000
Invested Capital
5,174,000
4,987,000
4,670,000
3,544,000
Working Capital
75,000
85,000
3,000
123,000
Net Tangible Assets
3,000
-221,000
-654,000
-867,000
Capital Lease Obligations
777,000
730,000
709,000
713,000
Common Stock Equity
1,861,000
1,600,000
1,266,000
1,012,000
Total Capitalization
5,114,000
4,925,000
4,601,000
3,485,000
Total Equity Gross Minority Interest
1,861,000
1,601,000
1,266,000
1,012,000
Stockholders Equity
1,861,000
1,600,000
1,266,000
1,012,000
Gains Losses Not Affecting Retained Earnings
-187,000
-246,000
-217,000
-222,000
Other Equity Adjustments
-187,000
-246,000
-217,000
-222,000
Retained Earnings
888,000
572,000
185,000
-4,000
Additional Paid In Capital
1,160,000
1,274,000
1,298,000
1,238,000
Total Liabilities Net Minority Interest
6,333,000
6,111,000
6,226,000
5,257,000
Total Non Current Liabilities Net Minority Interest
4,778,000
4,691,000
4,636,000
3,750,000
Other Non Current Liabilities
346,000
285,000
285,000
259,000
Liabilities Heldfor Sale Non Current
281,000
Employee Benefits
86,000
85,000
91,000
93,000
Non Current Deferred Liabilities
482,000
393,000
337,000
319,000
Non Current Deferred Taxes Liabilities
482,000
393,000
337,000
319,000
Long Term Debt And Capital Lease Obligation
3,864,000
3,928,000
3,923,000
3,079,000
Long Term Capital Lease Obligation
611,000
603,000
588,000
606,000
Long Term Debt
3,253,000
3,325,000
3,335,000
2,473,000
Current Liabilities
1,555,000
1,420,000
1,590,000
1,507,000
Other Current Liabilities
114,000
46,000
93,000
46,000
Current Debt And Capital Lease Obligation
226,000
189,000
190,000
166,000
Current Capital Lease Obligation
166,000
127,000
121,000
107,000
Current Debt
60,000
62,000
69,000
59,000
Other Current Borrowings
60,000
62,000
69,000
59,000
Payables And Accrued Expenses
1,215,000
1,185,000
1,307,000
1,295,000
Current Accrued Expenses
654,000
615,000
691,000
692,000
Payables
561,000
570,000
616,000
603,000
Total Tax Payable
106,000
93,000
84,000
82,000
Accounts Payable
455,000
477,000
532,000
521,000
Total Assets
8,194,000
7,712,000
7,492,000
6,269,000
Total Non Current Assets
6,564,000
6,206,000
5,899,000
4,639,000
Other Non Current Assets
265,000
254,000
196,000
209,000
Goodwill And Other Intangible Assets
1,858,000
1,821,000
1,920,000
1,879,000
Other Intangible Assets
311,000
360,000
422,000
407,000
Goodwill
1,547,000
1,461,000
1,498,000
1,472,000
Net PPE
4,441,000
4,131,000
3,783,000
2,551,000
Accumulated Depreciation
-2,360,000
-2,019,000
-1,853,000
-1,679,000
Gross PPE
6,801,000
6,150,000
5,636,000
4,230,000
Other Properties
777,000
727,000
708,000
719,000
Machinery Furniture Equipment
1,054,000
924,000
859,000
793,000
Buildings And Improvements
1,017,000
874,000
733,000
406,000
Land And Improvements
920,000
879,000
860,000
258,000
Current Assets
1,630,000
1,505,000
1,593,000
1,630,000
Other Current Assets
285,000
282,000
208,000
199,000
Assets Held For Sale Current
0
17,000
1,332,000
Receivables
1,035,000
977,000
973,000
954,000
Accounts Receivable
1,035,000
977,000
973,000
954,000
Allowance For Doubtful Accounts Receivable
-40,000
-50,000
-45,000
-43,000
Gross Accounts Receivable
1,075,000
1,027,000
1,018,000
997,000
Cash Cash Equivalents And Short Term Investments
310,000
246,000
412,000
460,000
Cash And Cash Equivalents
310,000
246,000
412,000
460,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
329,000
19,000
-851,000
311,000
Repurchase Of Capital Stock
-125,000
0
0
0
Repayment Of Debt
-188,000
-82,000
-2,188,000
-1,404,000
Issuance Of Debt
23,000
0
2,996,000
275,000
Issuance Of Capital Stock
0
0
384,000
Capital Expenditure
-657,000
-789,000
-1,533,000
-521,000
Interest Paid Supplemental Data
229,000
223,000
185,000
145,000
Income Tax Paid Supplemental Data
90,000
34,000
87,000
78,000
End Cash Position
330,000
298,000
419,000
470,000
Beginning Cash Position
298,000
419,000
470,000
273,000
Effect Of Exchange Rate Changes
-1,000
0
5,000
-18,000
Changes In Cash
33,000
-121,000
-56,000
215,000
Financing Cash Flow
-339,000
-226,000
761,000
-862,000
Cash From Discontinued Financing Activities
0
0
0
-1,000
Cash Flow From Continuing Financing Activities
-339,000
-226,000
761,000
-861,000
Net Other Financing Charges
-49,000
-135,000
-47,000
288,000
Net Common Stock Issuance
-125,000
0
0
0
Common Stock Payments
-125,000
0
0
Common Stock Issuance
0
0
384,000
Net Issuance Payments Of Debt
-165,000
-91,000
808,000
-1,149,000
Net Short Term Debt Issuance
23,000
-9,000
34,000
-20,000
Short Term Debt Payments
-200,000
Short Term Debt Issuance
23,000
34,000
0
Net Long Term Debt Issuance
-188,000
-82,000
774,000
-1,129,000
Long Term Debt Payments
-188,000
-82,000
-2,188,000
-1,404,000
Long Term Debt Issuance
0
0
2,962,000
275,000
Investing Cash Flow
-616,000
-702,000
-1,499,000
245,000
Cash From Discontinued Investing Activities
0
0
3,000
649,000
Cash Flow From Continuing Investing Activities
-616,000
-702,000
-1,502,000
-404,000
Net Other Investing Changes
-3,000
Net Investment Purchase And Sale
0
12,000
2,000
29,000
Sale Of Investment
0
12,000
2,000
29,000
Net PPE Purchase And Sale
-616,000
-714,000
-1,504,000
-433,000
Sale Of PPE
41,000
75,000
29,000
88,000
Purchase Of PPE
-657,000
-789,000
-1,533,000
-521,000
Operating Cash Flow
986,000
808,000
682,000
832,000
Cash From Discontinued Operating Activities
0
0
-12,000
8,000
Cash Flow From Continuing Operating Activities
986,000
808,000
694,000
824,000
Change In Working Capital
-45,000
-194,000
-99,000
1,000
Change In Other Current Assets
-38,000
-106,000
-9,000
-3,000
Change In Payables And Accrued Expense
40,000
-41,000
-44,000
104,000
Change In Accrued Expense
62,000
-33,000
4,000
42,000
Change In Payable
-22,000
-8,000
-48,000
62,000
Change In Account Payable
-22,000
-8,000
-48,000
62,000
Change In Receivables
-47,000
-47,000
-46,000
-100,000
Changes In Account Receivables
-47,000
-47,000
-46,000
-100,000
Other Non Cash Items
35,000
21,000
68,000
86,000
Stock Based Compensation
77,000
87,000
78,000
77,000
Asset Impairment Charge
0
0
64,000
0
Deferred Tax
99,000
57,000
31,000
80,000
Deferred Income Tax
99,000
57,000
31,000
80,000
Depreciation Amortization Depletion
521,000
490,000
432,000
392,000
Depreciation And Amortization
521,000
490,000
432,000
392,000
Depreciation
432,000
392,000
385,000
Operating Gains Losses
-17,000
-40,000
-5,000
-60,000
Gain Loss On Investment Securities
1,000
Gain Loss On Sale Of PPE
-17,000
-40,000
-5,000
-60,000
Net Income From Continuing Operations
316,000
387,000
189,000
184,000
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: $1.9B
Warren's Owner Earnings
$1.5B
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.
$8.2B
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.
1.05x
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 $5.76 to $2.64 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.
-54.2% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $8.2Bvs > $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 — 1.05xvs 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 $5.76 to $2.64 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 XPO 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
8.7%
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
207.9%
203.9%
811.1%
78.2%
N/A
Repurchase of Capital Stock
-$125M
$0M
$0M
$0M
N/A
Free Cash Flow
$329M▲
$19M▲
-$851M▼
$311M•
N/A•
Warren's Owner Earnings
$1.5B
$1.7B
$2.2B
$1.6B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare XPO 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
XPO (XPO) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 12.0%. Operating margin: 8.9%. Net margin: 3.9%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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