Professional
Added to YB: 2025-10-24
Pitch date: 2025-10-22
RXO [bearish]
RXO, Inc.
+11.83%
current return
Author Info
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Company Info
RXO, Inc. engages in truck brokerage business in the United States, Canada, Mexico, Asia, and Europe.
Market Cap
$1.9B
Pitch Price
$17.50
Price Target
1.38 (-91%)
Dividend
N/A
EV/EBITDA
10.06
P/E
-24.31
EV/Sales
0.43
Sector
Ground Transportation
Category
N/A
RXO, Inc.: The Dead End of Digital Freight Brokerage
RXO short: DFF business model fundamentally flawed - never generated TTM FCF since spin-off, ran out of cash multiple times, avoided covenant violation only via aggressive EBITDA add-backs (45% of total by 2Q24). Overpaid 2-4x for failing Coyote acquisition while concealing its -68% EBITDA decline. Fair value $1.38-$7.94/share implies 60-90% downside vs current levels.
Read full article (40 min)