QXO Inc (QXO) AI Stock Analysis

• Market Cap: $5.38B
• Dividend Yield: N/A
• Average Volume (3M): 4.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: 4.32%
• EPS Growth: 55.86%
• Country: US
• Employees: 211
• Sector: Technology
• Sector Strength: 44
• Industry: Software - Application
• EPS (TTM): -0.72
• Shares Outstanding: 409,430,200
• 10 Day Avg. Volume: 5,203,752
• 30 Day Avg. Volume: 4,132,995
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 91.21
• Price to Cash Flow (P/CF): 24.00
• P/FCF Ratio: 24.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

QXO's strong financial performance, particularly its balance sheet stability and revenue growth, are significant strengths. However, operational inefficiencies and reliance on external financing are notable risks. The technical analysis suggests a lack of clear momentum, and the valuation indicates potential overvaluation. The corporate event of a large acquisition could enhance market position but also increases financial leverage.

QXO Inc Business Overview & Revenue Model

Company Description

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.

How the Company Makes Money

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QXO Inc Financial Statement Overview

Summary

QXO Inc has demonstrated strong revenue growth and improved net profitability, though operational inefficiencies persist. The balance sheet is robust with minimal leverage, high equity ratios, and solid financial stability. Cash flow statements indicate significant cash generation and effective capital management, despite notable activity in financing cash flows.

Income Statement

QXO Inc has shown strong revenue growth with a 4.31% increase from 2023 to 2024, and its gross profit margin of approximately 40.32% in 2024 indicates healthy profitability. However, the company recorded a negative EBIT margin of -124.85% in 2024, reflecting operational inefficiencies. The net profit margin improved significantly to 49.17% in 2024, indicating a substantial turnaround in net profitability. Despite these improvements, the volatility in EBIT suggests potential risks in cost management.

Balance Sheet

QXO Inc's balance sheet is robust, with a very low debt-to-equity ratio of 0.0001, indicating minimal leverage and financial risk. The equity ratio is remarkably high at approximately 99.11%, reflecting strong financial stability. The return on equity also improved significantly, driven by a substantial increase in net income. Overall, the company maintains a strong financial position with substantial equity backing its operations.

Cash Flow

QXO Inc demonstrated significant improvement in operating cash flow, rising to $84.88 million in 2024. The free cash flow to net income ratio is very healthy at approximately 3.03, indicating strong cash generation relative to net income. The company has effectively managed its capital expenditures, supporting positive free cash flow growth. However, the cash flow from financing activities was notably high, suggesting potential reliance on external funding.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
56.87M	54.52M	44.99M	41.70M	41.22M
	Gross Profit
22.93M	20.79M	17.01M	16.33M	15.87M
	EBIT
-71.00M	1.67M	-385.38K	-230.99K	223.38K
	EBITDA
51.99M	-185.11K	1.37M	1.16M	1.36M
	Net Income Common Stockholders
27.97M	-1.07M	-282.22K	-134.43K	175.65K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.07B	6.14M	8.01M	6.81M	6.60M
	Total Assets
5.10B	20.50M	21.44M	18.00M	16.54M
	Total Debt
577.00K	2.62M	2.40M	2.29M	3.04M
	Net Debt
-5.07B	-3.52M	-5.61M	-4.53M	-3.56M
	Total Liabilities
45.36M	13.02M	11.89M	8.64M	9.26M
	Stockholders Equity
5.05B	7.47M	9.55M	9.36M	7.28M
Cash Flow		Free Cash Flow
84.78M	462.88K	2.00M	111.27K	1.60M
	Operating Cash Flow
84.88M	583.80K	2.04M	226.03K	1.73M
	Investing Cash Flow
-102.00K	-399.42K	-188.74K	-510.46K	839.81K
	Financing Cash Flow
4.98B	-2.05M	-655.13K	503.13K	-4.63M

QXO Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QXO, the sentiment is Negative. The current price of 12.72 is below the 20-day moving average (MA) of 13.75, below the 50-day MA of 13.27, and below the 200-day MA of 18.78, indicating a bearish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 43.70 is Neutral, neither overbought nor oversold. The STOCH value of 45.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QXO.

QXO Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWAN	76 Outperform	$5.94B	14.01	62.32%	―	22.72%	―
CVLT	76 Outperform	$6.59B	39.32	74.05%	―	15.19%	―
QXO	70 Outperform	$5.38B	―	1.11%	―	4.32%	55.86%
PEGA	70 Outperform	$5.85B	61.76	21.12%	0.17%	4.51%	43.29%
VERX	70 Outperform	$6.21B	235.54	-24.39%	―	16.49%	-279.46%
Sector *	58 Neutral	$9.82B	10.00	-6.63%	3.09%	7.49%	-11.58%
U	53 Neutral	$7.88B	―	-20.84%	―	-17.10%	21.82%

QXO Inc Corporate Events

QXO Inc Announces $2 Billion Note Offering

On April 21, 2025, QXO Inc. announced a proposed private offering of $2 billion in Senior Secured Notes due 2032 by its subsidiary, Queen MergerCo, Inc. The proceeds from this offering, along with other financial resources, are intended to fund the acquisition of Beacon Roofing Supply, Inc. and related expenses. Upon completion, Queen MergerCo will merge into Beacon, making Beacon a wholly owned subsidiary of QXO. This move is part of QXO’s strategy to expand its market presence and strengthen its position in the building products distribution industry.

Spark’s Take on QXO Stock

According to Spark, TipRanks’ AI Analyst, QXO is a Neutral.

QXO Inc’s overall stock score reflects a solid financial performance with strong revenue growth, improved net profitability, and a robust balance sheet. However, challenges in operational efficiency and reliance on external financing are areas of concern. The technical analysis suggests a lack of clear momentum, while the valuation indicates potential overvaluation due to negative earnings. Despite these challenges, the company’s strong financial foundation provides some assurance, resulting in a moderately positive overall score.

To see Spark’s full report on QXO stock, click here.

QXO Inc Announces $500M Public Stock Offering

On April 16, 2025, QXO Inc. announced its intention to offer $500 million of its common stock to the public, with an option for underwriters to purchase an additional $75 million. The proceeds from this offering are intended to finance part of the acquisition of Beacon Roofing Supply, Inc., although the offering is not contingent on the acquisition’s completion. Morgan Stanley and Goldman Sachs are acting as underwriters for this offering, which will be made via a prospectus supplement filed with the SEC.

Spark’s Take on QXO Stock

According to Spark, TipRanks’ AI Analyst, QXO is a Neutral.

QXO Inc demonstrates strong financial stability with robust balance sheet metrics and healthy cash flow generation, driving its positive score. However, operational inefficiencies and a negative P/E ratio reflect valuation challenges, and the stock’s technical analysis suggests mixed market sentiment. The absence of earnings call and corporate events data limits further insights.

To see Spark’s full report on QXO stock, click here.