XPO turned in another solid quarter yesterday…steady improvement continues.
http://www.xpo.com/news/xpo-logistics-announces-fourth-quart…
To me, the highlights related to cash flows:
CFFO
2015: 90.8M
2016: 625.4M
FCF
2015: -167.9M
2016: +210.9M
FCF goal for the next 2 years combined is 900M…and they’ve been making a habit of hitting and exceeding their goals.
Also, this company is still in the bargain bin, with a PS of 0.45. Their PE ratio of ~50 doesn’t sound especially inexpensive until you realize:
- they’re only 3 quarters into profitability (since they hit their inflection-point)
- Fwd PE is under 30
- 2-yr Fwd PE is under 20
- Net Margin is currently less than 1% on a TTM basis, so there’s a LOT of room to run
- They’re rapidly growing cash flows, EPS, etc, and it’s highly likely they’ll beat estimates at this early stage in the game of showing profit.
Shares were up more than 12% this morning but quickly settled back down and are now up only 4% on these great results. I just added more.
Bear