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 Margin8.8%
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 Margin4.8%
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 Debt39.9 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-$16M
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
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book12.66x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow$72M
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 Income109.9%
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$343M
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.
About XPO, Inc.
XPO, Inc., together with its subsidiaries, provides freight transportation services in the United States, North America, France, the United Kingdom, and rest of Europe. The company operates in two segments, North American Less-Than-Truckload (LTL) and European Transportation. The North American LTL segment provides shippers with geographic density and day-definite domestic and cross-border services to the U.S., Mexico, Canada, and the Caribbean. The European Transportation segment offers dedicated truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding, and warehousing and multimodal solutions to an extensive base of customers within the consumer, trade, and industrial markets. The company was formerly known as XPO Logistics, Inc. and changed its name to XPO, Inc. in December 2022. The company was founded in 1989 and is based in Greenwich, Connecticut.
XPO, Inc., together with its subsidiaries, provides freight transportation services in the United States, North America, France, the United Kingdom, and rest of Europe. The company operates in two segments, North American Less-Than-Truckload (LTL) and European Transportation. The North American LTL segment provides shippers with geographic density and day-definite domestic and cross-border services to the U.S., Mexico, Canada, and the Caribbean. The European Transportation segment offers dedicated truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding, and warehousing and multimodal solutions to an extensive base of customers within the consumer, trade, and industrial markets. The company was formerly known as XPO Logistics, Inc. and changed its name to XPO, Inc. in December 2022. The company was founded in 1989 and is based in Greenwich, Connecticut.
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.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
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.
Mr. Market is currently offering XPO, Inc. at $199.50.
The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.
At $199.50, the stock trades at a 1049% premium to its Graham Number of $17.36. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Gross Profit %
11.4%▼
11.6%•
N/A
Operating Margin %
8.8%▲
8.1%•
N/A
Net Income %
4.8%▲
2.9%•
N/A
Diluted EPS
0.85▲
0.50•
N/A
Balance Sheet Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Total Assets
$8.2B
$8.2B
N/A
Total Debt
$4.0B▼
$4.1B•
N/A
Working Capital
-$16M▼
$75M•
N/A
Years to Pay Debt
39.91
69.32
N/A
Cash Flow Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Free Cash Flow
$72M▼
$120M•
N/A
Owner Earnings
$343M
$298M
N/A
CapEx % of Net Income
109.9%
179.7%
N/A
Income Statement
2026
2025
2024
Tax Effect Of Unusual Items
-1,840
-7,033
Tax Rate For Calcs
0
0
Normalized EBITDA
318,000
297,000
Total Unusual Items
-10,000
-20,000
Total Unusual Items Excluding Goodwill
-10,000
-20,000
Net Income From Continuing Operation Net Minority Interest
101,000
59,000
Reconciled Depreciation
131,000
133,000
Reconciled Cost Of Revenue
1,857,000
1,778,000
EBITDA
308,000
277,000
EBIT
177,000
144,000
Net Interest Income
-53,000
-53,000
Interest Expense
53,000
53,000
Normalized Income
109,160
71,967
Net Income From Continuing And Discontinued Operation
101,000
59,000
Total Expenses
1,912,000
1,849,000
Total Operating Income As Reported
174,000
143,000
Diluted Average Shares
119,000
119,000
Basic Average Shares
117,000
117,000
Diluted EPS
0
0
Basic EPS
0
0
0
Diluted NI Availto Com Stockholders
101,000
59,000
Net Income Common Stockholders
101,000
59,000
Net Income
101,000
59,000
Net Income Including Noncontrolling Interests
101,000
59,000
Net Income Continuous Operations
101,000
59,000
Tax Provision
23,000
32,000
Pretax Income
124,000
91,000
Other Income Expense
-7,000
-18,000
Other Non Operating Income Expenses
3,000
2,000
Special Income Charges
-10,000
-20,000
Gain On Sale Of Ppe
1,000
15,000
Other Special Charges
1,000
Restructuring And Mergern Acquisition
11,000
34,000
Net Non Operating Interest Income Expense
-53,000
-53,000
Interest Expense Non Operating
53,000
53,000
Operating Income
184,000
162,000
Operating Expense
55,000
71,000
Other Taxes
21,000
22,000
Selling General And Administration
34,000
49,000
General And Administrative Expense
34,000
49,000
Insurance And Claims
34,000
49,000
Gross Profit
239,000
233,000
Cost Of Revenue
1,857,000
1,778,000
Total Revenue
2,096,000
2,011,000
Operating Revenue
2,096,000
2,011,000
Balance Sheet
2026
2025
2024
Ordinary Shares Number
117,408
117,384
Share Issued
117,408
117,384
Net Debt
3,039,000
3,003,000
Total Debt
4,031,000
4,090,000
Tangible Book Value
23,000
3,000
Invested Capital
5,126,000
5,174,000
Working Capital
-16,000
75,000
Net Tangible Assets
23,000
3,000
Capital Lease Obligations
755,000
777,000
Common Stock Equity
1,850,000
1,861,000
Total Capitalization
5,022,000
5,114,000
Total Equity Gross Minority Interest
1,851,000
1,861,000
Stockholders Equity
1,850,000
1,861,000
Gains Losses Not Affecting Retained Earnings
-194,000
-187,000
Other Equity Adjustments
-194,000
-187,000
Retained Earnings
989,000
888,000
Additional Paid In Capital
1,055,000
1,160,000
Total Liabilities Net Minority Interest
6,332,000
6,333,000
Total Non Current Liabilities Net Minority Interest
4,641,000
4,778,000
Other Non Current Liabilities
300,000
346,000
Employee Benefits
84,000
86,000
Non Current Deferred Liabilities
494,000
482,000
Non Current Deferred Taxes Liabilities
494,000
482,000
Long Term Debt And Capital Lease Obligation
3,763,000
3,864,000
Long Term Capital Lease Obligation
591,000
611,000
Long Term Debt
3,172,000
3,253,000
Current Liabilities
1,691,000
1,555,000
Other Current Liabilities
161,000
114,000
Current Debt And Capital Lease Obligation
268,000
226,000
Current Capital Lease Obligation
164,000
166,000
Current Debt
104,000
60,000
Other Current Borrowings
104,000
60,000
Payables And Accrued Expenses
1,262,000
1,215,000
Current Accrued Expenses
800,000
654,000
Payables
462,000
561,000
Total Tax Payable
106,000
93,000
Accounts Payable
462,000
455,000
Total Assets
8,183,000
8,194,000
Total Non Current Assets
6,508,000
6,564,000
Other Non Current Assets
271,000
265,000
Goodwill And Other Intangible Assets
1,827,000
1,858,000
Other Intangible Assets
295,000
311,000
Goodwill
1,532,000
1,547,000
Net PPE
4,410,000
4,441,000
Accumulated Depreciation
-2,407,000
-2,360,000
Gross PPE
6,817,000
6,801,000
Other Properties
6,817,000
777,000
Machinery Furniture Equipment
1,054,000
924,000
Buildings And Improvements
1,017,000
874,000
Land And Improvements
920,000
879,000
Current Assets
1,675,000
1,630,000
Other Current Assets
275,000
285,000
Receivables
1,163,000
1,035,000
Accounts Receivable
1,163,000
1,035,000
Allowance For Doubtful Accounts Receivable
-40,000
-40,000
Gross Accounts Receivable
1,203,000
1,075,000
Cash Cash Equivalents And Short Term Investments
237,000
310,000
Cash And Cash Equivalents
237,000
310,000
Cash Flow
2026
2025
2024
Free Cash Flow
72,000
120,000
Repurchase Of Capital Stock
-30,000
-68,000
Repayment Of Debt
-50,000
-82,000
Capital Expenditure
-111,000
-106,000
Interest Paid Supplemental Data
39,000
71,000
Income Tax Paid Supplemental Data
4,000
19,000
End Cash Position
257,000
330,000
Beginning Cash Position
330,000
341,000
Effect Of Exchange Rate Changes
-2,000
0
Changes In Cash
-71,000
-11,000
Financing Cash Flow
-147,000
-154,000
Cash Flow From Continuing Financing Activities
-147,000
-154,000
Net Other Financing Charges
-87,000
-3,000
Net Common Stock Issuance
-30,000
-68,000
Common Stock Payments
-30,000
-68,000
Net Issuance Payments Of Debt
-30,000
-83,000
Net Short Term Debt Issuance
20,000
-1,000
Net Long Term Debt Issuance
-50,000
-82,000
Long Term Debt Payments
-50,000
-82,000
Investing Cash Flow
-107,000
-84,000
Cash Flow From Continuing Investing Activities
-107,000
-84,000
Net Investment Purchase And Sale
-3,000
0
4,000
Sale Of Investment
0
4,000
Purchase Of Investment
-3,000
Net PPE Purchase And Sale
-104,000
-83,000
Sale Of PPE
7,000
23,000
Purchase Of PPE
-111,000
-106,000
Operating Cash Flow
183,000
226,000
Cash Flow From Continuing Operating Activities
183,000
226,000
Change In Working Capital
-80,000
-19,000
Change In Other Current Assets
1,000
-56,000
Change In Payables And Accrued Expense
65,000
-22,000
Change In Accrued Expense
49,000
-14,000
Change In Payable
16,000
-8,000
Change In Account Payable
16,000
-8,000
Change In Receivables
-146,000
59,000
Changes In Account Receivables
-146,000
59,000
Other Non Cash Items
10,000
10,000
Stock Based Compensation
13,000
31,000
Deferred Tax
9,000
27,000
Deferred Income Tax
9,000
27,000
Depreciation Amortization Depletion
131,000
133,000
Depreciation And Amortization
131,000
133,000
Operating Gains Losses
-1,000
-15,000
Gain Loss On Sale Of PPE
-1,000
-15,000
Net Income From Continuing Operations
101,000
59,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $2.0B▲ $2.1B+7.3%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 10.6%▲ 11.4%+0.8pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 9.4%▲ 8.8%-0.6pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 3.5%▲ 4.8%+1.3pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$2.1B/qtr (≈$8.4B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.99x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$72M
vs Positive
Operating Cash Flow
$183M
Latest quarter · Buffett's cash reality check
ROIC
2.2%
Based on latest annual operating income
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.
Market Cap / Net Assets
12.7x
Net Assets: $1.9B
Asset Context — Trucking
Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.
Peers & Industry
No auto-detected peers for Trucking. 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
Capital Allocation & Alignment
Insider Ownership
1.99%
Low — management has little skin in the game
Return on Equity (ROE)
5.5%
Weak — poor returns on equity
Return on Assets (ROA)
1.2%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$125M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-1.4% YoY
Debt is declining — management is deleveraging
Leadership Team
Mario Harik
CEO & Chairman of the Board
Age 44
Pay: $2,124,784
2.104% of net income
Kyle Wismans
Chief Financial Officer
Age 41
Pay: $1,114,099
1.103% of net income
David Bates
Chief Operating Officer
Age 60
Pay: $5,102,965
5.052% of net income
Anthony Hoereth
Senior Vice President of Sales
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
10.36%
12,167,246
MFN Partners Management, LP
9.73%
11,425,369
Capital Research Global Investors
8.17%
9,588,191
Capital World Investors
4.92%
5,778,228
Vanguard Capital Management LLC
4.31%
5,060,285
Invesco Ltd.
4.12%
4,831,614
Vanguard Portfolio Management LLC
4.04%
4,746,471
FMR, LLC
3.07%
3,604,998
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
1.64
High volatility — moves more than the market
Short Interest
6.3% of float
Moderate short interest
Debt-to-Equity
2.21x
High leverage — significant financial risk
Current Ratio
0.99x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $116.68Current: $199.50High: $232.05
Currently at 72% of 52-week range
XPO, Inc. (XPO) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $17.36. Margin of safety: 0%. Gross profit margin: 11.4%. Operating margin: 8.8%. Net margin: 4.8%. Market cap: $23.4B. Sector: Industrials. Industry: Trucking. 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.