AllAnalyst Report
logoMorningstarJuly 29, 2021

XPO Logistics, Inc.: Freight Volume, LTL Yields, and EBITDA Margins Continue to Push Higher in XPO’s Q2

Symbols
XPO
Sector(s)
Industrials
Rating
Current Price
$83.11
Fair Value
Economic Moat
Stewardship
Summary

XPO Logistics is a diversified trucking and logistics company, built mostly via acquisition (until 2016). Following the third-quarter 2021 spin-off of its global contract logistics division (outsourced warehousing and supply-chain services), XPO’s portfolio will reflect its current transportation operations--asset-based less-than-truckload shipping (33% of gross revenue), asset-light freight brokerage including intermodal and truck brokerage (29%), heavy goods last mile delivery (8%), and its European truckload and LTL operations (24%). The remainder of revenue stems from managed transportation and global forwarding services. Currently, the transportation division makes up 63% of gross revenue, while the contract logistics segment makes up 37%.

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Analyst Profile

Matthew Young

Equity Analyst
Matthew Young, CFA, is an equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers transportation and logistics firms.Before joining Morningstar in 2010, Young spent five years as an equity research associate at William Blair, where he covered logistics and commercial-services firms.Young holds a bachelor's degree from Wheaton College and a master's degree in business administration, with concentrations in finance and accounting, from the University of Chicago Booth School of Business. He also holds the Chartered Financial Analyst® designation.