Latest Ratios: P/E Ratio -16.4x · EV/EBITDA 33.5x · ROE -3.8%. (2004–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $10.7B | $11.8B | $6.5B | $45.0B | $61.2B | $89.9B | $51.5B | $78.3B | $41.8B | $76.0B | $53.7B |
| Enterprise Value | $12.2B | $13.4B | $6.5B | $45.0B | $61.2B | $89.9B | $51.5B | $78.3B | $41.8B | $76.0B | $53.7B |
| P/E Ratio → | -16.37 | — | — | — | — | — | 590.45 | — | 315.91 | — | 31.22 |
| P/S Ratio | 1.56 | 1.73 | 114.06 | 825.35 | 1359.96 | 2155.14 | 1249.25 | 2034.01 | 1156.55 | 2179.33 | 1573.20 |
| P/B Ratio | 0.65 | 1.22 | 1.28 | 6022.79 | 6404.54 | 9605.16 | 7073.46 | 8804.55 | 9634.05 | 17967.74 | 10799.26 |
| P/FCF | 58.39 | 64.55 | 76.52 | 97183.17 | 30594.47 | 807674.08 | 32097.59 | — | 46564.05 | 48898.01 | 41374.37 |
| P/OCF | 40.92 | 45.24 | 76.42 | 77047.62 | 30012.98 | 397605.31 | 29781.23 | — | 32254.80 | 32897.26 | 29919.74 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.96 | 113.97 | 825.29 | 1359.84 | 2155.03 | 1249.16 | 2033.84 | 1156.54 | 2179.28 | 1573.18 |
| EV / EBITDA | 33.46 | 36.54 | — | — | 44636.95 | 77225.58 | 38272.44 | — | — | 48701.28 | 27500.07 |
| EV / EBIT | — | — | 127.41 | — | — | 994409.73 | 217578.84 | — | — | 80864.29 | 42356.43 |
| EV / FCF | — | 73.02 | 76.45 | 97175.56 | 30591.66 | 807633.39 | 32095.38 | — | 46563.81 | 48896.99 | 41373.85 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 16.8% | 16.8% | 40.3% | 39.6% | 39.9% | 41.3% | 40.2% | 38.1% | 36.6% | 38.0% | 35.3% |
| Operating Margin | -0.8% | -0.8% | -124.8% | -2.4% | -0.9% | -0.6% | 0.5% | -5.0% | -3.2% | 2.7% | 3.7% |
| Net Profit Margin | -4.1% | -4.1% | 49.2% | -2.0% | -0.6% | -0.3% | 0.4% | 17.6% | 0.7% | -1.4% | 10.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -3.8% | -3.8% | 1.1% | -12.6% | -3.0% | -1.6% | 2.2% | 102.7% | 6.1% | -10.6% | 105.3% |
| ROA | -2.7% | -2.7% | 1.1% | -5.1% | -1.4% | -0.8% | 1.0% | 44.3% | 2.4% | -4.6% | 35.9% |
| ROIC | -0.5% | -0.5% | -2.1% | -24.9% | -6.6% | -4.1% | 5.4% | -43.4% | -25.7% | 20.3% | 31.0% |
| ROCE | -0.6% | -0.6% | -2.8% | -13.3% | -3.6% | -2.3% | 2.3% | -24.1% | -23.0% | 18.6% | 29.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.40 | 0.40 | 0.00 | 0.35 | 0.25 | 0.24 | 0.42 | 0.25 | 0.39 | 0.15 | 0.19 |
| Debt / EBITDA | 10.69 | 10.69 | — | — | 1.75 | 1.97 | 2.26 | — | — | 0.42 | 0.49 |
| Net Debt / Equity | — | 0.16 | -0.00 | -0.47 | -0.59 | -0.48 | -0.49 | -0.72 | -0.05 | -0.38 | -0.14 |
| Net Debt / EBITDA | 4.24 | 4.24 | — | — | -4.09 | -3.89 | -2.64 | — | — | -1.02 | -0.34 |
| Debt / FCF | — | 8.48 | -0.07 | -7.61 | -2.81 | -40.69 | -2.22 | — | -0.23 | -1.02 | -0.52 |
| Interest Coverage | -0.94 | -0.94 | 847.87 | -23.19 | -4.33 | 1.93 | 17.38 | -47.30 | -27.86 | 29.63 | 19.59 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.58 | 3.58 | 112.85 | 1.02 | 1.27 | 1.45 | 1.28 | 1.50 | 0.78 | 0.92 | 0.96 |
| Quick Ratio | 2.61 | 2.61 | 112.85 | 1.02 | 1.27 | 1.45 | 1.28 | 1.50 | 0.78 | 0.92 | 0.96 |
| Cash Ratio | 1.52 | 1.52 | 0.14 | 0.53 | 0.74 | 0.92 | 0.98 | 1.00 | 0.30 | 0.38 | 0.32 |
| Asset Turnover | — | 0.43 | 0.01 | 2.66 | 2.10 | 2.32 | 2.59 | 2.03 | 3.07 | 3.35 | 3.20 |
| Inventory Turnover | 3.80 | 3.80 | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 85.55 | 88.48 | 19.88 | 21.10 | 19.35 | 14.45 | 36.62 | 20.90 | 28.95 | 31.72 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.7% | 0.9% | 0.3% | 0.0% | — | 0.0% | 0.0% | 0.0% | — | 0.0% | 0.0% |
| Payout Ratio | — | — | 62.2% | — | — | — | 2306.4% | 3.3% | — | — | 7.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | 0.2% | — | 0.3% | — | 3.2% |
| FCF Yield | 1.7% | 1.5% | 1.3% | 0.0% | 0.0% | 0.0% | 0.0% | — | 0.0% | 0.0% | 0.0% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.7% | 0.9% | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $613M | $408M | $329M | $323M | $314M | $281M | $281M | $281M | $281M | $280M |
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying QXO stock.
QXO, Inc.'s current P/E ratio is -16.4x. The historical average is 31.2x.
QXO, Inc.'s current EV/EBITDA is 33.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 36.5x.
QXO, Inc.'s return on equity (ROE) is -3.8%. The historical average is 21.2%.
Based on historical data, QXO, Inc. is trading at a P/E of -16.4x. Compare with industry peers and growth rates for a complete picture.
QXO, Inc.'s current dividend yield is 1.66%.
QXO, Inc. has 16.8% gross margin and -0.8% operating margin.
QXO, Inc.'s Debt/EBITDA ratio is 10.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Integration and margin expansion execution
Metrics are mathematically derived from official filings.
Valuation Reflects Jacobs Premium, Not Current Earnings
QXO's forward P/E of 49.13 and EV/EBITDA of 41.88 are extreme outliers versus peers like BLDR (9.15x EV/EBITDA), indicating the market is pricing in a massive execution premium for the 'buy-and-build' strategy rather than current financial performance.
The valuation multiples are disconnected from the company's current negative operating margins and negative ROE, suggesting investors are paying for future scale and margin expansion that has yet to materialize. The P/B ratio of 0.84 appears low but is misleading, as it is depressed by a large goodwill balance from acquisitions, not tangible asset value. This pricing creates significant execution risk, as any stumble in the integration or margin trajectory could lead to a severe multiple compression.
Gross Margin Compression Signals Structural Shift
QXO's gross margin has structurally compressed from ~40% in its legacy IT business to 24.7% in 2026Q2, a level that aligns with the lower-margin, high-volume industrial distribution model it now operates in.
The shift from a high-margin, project-based IT consultancy to a transactional wholesale distributor is the primary driver of this margin compression. The current -1.3% operating margin indicates that SG&A and integration costs are scaling faster than gross profit, highlighting the significant investment required to build the new platform. Investors should monitor whether the 'tech-enabled' efficiency gains can eventually drive margins above the industry standard or if they will be permanently absorbed by the high costs of rapid consolidation.
Negative Returns Reflect Pre-Scale Investment Phase
QXO's ROIC and ROE have been consistently negative since the transformation began, with ROIC at -0.2% in 2026Q2, indicating the company is currently destroying value as it invests heavily to build scale and integrate acquisitions.
The negative returns on capital are a direct consequence of the aggressive 'buy-and-build' strategy, where upfront costs and integration expenses outpace the initial revenue contributions from acquired entities. The trend shows no sustained positive inflection, with ROIC swinging from -2.1% in 2025Q2 to -0.2% in 2026Q2, suggesting the path to positive returns is volatile and dependent on achieving operational synergies. This profile is typical for a high-growth roll-up in its early stages, but it requires successful execution to transition from value destruction to value creation.
Working Capital Demands Intensify with Scale
The cash conversion cycle has ballooned to 76 days in 2026Q2 from 91 days in 2025Q3, driven by a sharp increase in days inventory outstanding to 70 days, which suggests the integration of acquired distributors is creating significant and unpredictable working capital demands.
The lengthening CCC, particularly the rise in DIO, indicates that inventory management efficiency has not yet improved with scale, potentially due to the challenges of integrating disparate legacy systems and regional practices. The DSO of 56 days and DPO of 50 days suggest the company has moderate leverage with customers and suppliers, but the overall cycle is consuming cash. This working capital volatility is a key driver of the negative free cash flow and warrants close monitoring as a test of the platform's operational efficiency thesis.
Leverage Rises to Fund Aggressive Roll-Up
QXO's debt-to-equity ratio has surged to 0.68 in 2026Q2 from near-zero levels just four quarters prior, indicating a strategic shift to leverage for acquisition financing that has yet to be supported by positive operating earnings.
The rapid increase in leverage is a deliberate capital allocation choice to fund the M&A pipeline, but the negative interest coverage ratio of -1.18 in 2026Q2 signals that debt service is currently not covered by operating income. While the company's massive cash position of $2.8B provides a substantial liquidity buffer, the trajectory of leverage relative to the achievement of positive EBITDA will be critical. Investors should monitor covenant headroom and the company's ability to refinance debt on favorable terms if the integration timeline extends.
The Misleading Low Price-to-Book Ratio
QXO's P/B ratio of 0.84 is the most commonly misapplied metric, as it appears to signal deep value but actually obscures the significant goodwill impairment risk embedded in the company's acquisition-heavy balance sheet.
The low P/B ratio is a function of the massive $6.2B goodwill balance, which now constitutes over half of total equity, rather than reflecting tangible asset value. This metric is misleading for a roll-up because it does not account for the risk that acquired businesses may underperform, leading to potential impairments that would erode book value. A more appropriate alternative for analysis is EV/EBITDA, which focuses on operating cash flow generation and is less distorted by the accounting treatment of acquisitions and intangible assets.