U.S. Xpress Enterprises, Inc.
U.S. Xpress Enterprises, Inc.(NYSE: USX) is a freight carrier based in the United States. Through its non-asset-based truck brokerage network, the company provides various services using its own truckload fleet and third-party carriers. It operates in two segments: truckload and brokerage. The Truckload segment accounts for the majority of the company's revenue.
Why Should Investors Exit?
Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
USX's share price has fallen 50.67% in the past six months and is currently leaning towards the lower end of its 52-week range of USD 4.05 to USD 12.33. We have valued the stock using the EV/EBITDA-based relative valuation methodology and arrived at a target price of USD 3.33.
Considering the company's leveraged balance sheet, bottom line stress, further decline in operating cash flows, and current valuation, we recommend a "Sell" rating on the stock at the closing price of USD 4.42, up 3.27% as of February 09, 2022.
Three-Year Technical Price Chart (as of February 09, 2022). Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.