QXO Inc (QXO) Stock Analysis
Verdict: WATCH (do not buy)
Aggressive $17B roll-up of TopBuild brings massive $28B revenue potential, but execution friction and $7.0B debt leave shares near 52W lows.
Investment score: 41/100
Analysis as of
Is QXO Inc stock worth reviewing? The TradeMates thesis
QXO is undergoing a massive transformation under CEO Brad Jacobs, consolidating building materials distribution via the $17B TopBuild and $2.25B Kodiak acquisitions. While revenue is projected to reach $19.21B in 2027, $7.04B in debt and negative TTM net margins (-5.2%) create substantial balance sheet friction.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 40/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 40/100 (weight 15%)
- Insider Sentiment: 50/100 (weight 10%)
- Analyst Consensus: 85/100 (weight 10%)
- Risk-Adjusted Return: 35/100 (weight 15%)
QXO Inc opportunities and risks
What speaks for QXO
- Scale expansion via $17B TopBuild acquisition
What speaks against QXO
- High debt leverage from $7.04B total debt load
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| QXO | n/a | 1.2x | 42.1x | 19.2% | -5.2% | 1.2% |
| FERG | 21.4x | 1.4x | 15.8x | 30.6% | 6.4% | 2.9% |
| SUNB | 22.3x | 2.6x | 10.2x | 44.6% | 12.0% | 12.2% |
| WCC | 24.9x | 0.7x | 14.9x | 21.4% | 2.8% | 0.9% |
| WSO | 26.0x | 1.7x | 17.0x | 27.9% | 6.5% | 5.6% |
| AIT | 30.3x | 2.5x | 23.1x | 30.3% | 8.3% | 3.7% |
| Peer median | 24.9x | 1.7x | 15.8x | 30.3% | 6.5% | 3.7% |
Frequently asked questions about QXO Inc (QXO)
Is QXO stock a good investment?
The TradeMates model rates QXO Inc as WATCH (do not buy) with an investment score of 41/100. QXO is undergoing a massive transformation under CEO Brad Jacobs, consolidating building materials distribution via the $17B TopBuild and $2.25B Kodiak acquisitions. While revenue is projected to reach $19.21B in 2027, $7.04B in debt and negative TTM net margins (-5.2%) create substantial balance sheet friction. This is algorithmic model output, not personal investment advice.
Is QXO stock a buy?
The TradeMates model verdict for QXO is WATCH (do not buy) with an investment score of 41/100. Treat this as a model signal to review, not a personal buy recommendation.