Summary
QXO: Trusting The Brad Jacobs Playbook For Long-Term Returns
A short-term focus on housing weakness has driven QXO to be undervalued if it can continue its consolidation of the building products distribution market. Strong CEO in Brad Jacobs, who has a superb track record of industry consolidation with previous ventures: United Rentals and XPO Inc., both returned >6,000% since their IPOs. I rate QXO a "Buy" at $15 or below, driven by strong EBITDA growth associated with the official closing of the TopBuild acquisition on July 1, 2026.
QXO Just Finished Building The Machine, And The Market Sold The News
QXO, Inc. has completed its $17B TopBuild acquisition, creating an $18B revenue platform with nationwide reach. Despite integration risks and near-term losses, QXO trades below its acquisition price for TopBuild, presenting a compelling long-term value opportunity. Management targets $4B organic EBITDA by 2030, with a clear blueprint for procurement synergies, technology rollout, and cross-selling across its diversified portfolio.
2 Ways to Play the QXO/TopBuild Deal
With a $17-billion bet on TopBuild Corp. NYSE: BLD, QXO Inc. NYSE: QXO is positioning itself to be one of the biggest building products companies in the country. Besides a direct investment in QXO, investors might take a hard turn away from QXO and look at one of the biggest competitors, Installed Building Products, Inc. NYSE: IBP.
Qxo Inc. Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TMB Timothy M. Bidwell Hazlett, BURT & WATSON Inc. | 700 | $13,342 | $10,531.5 | -$2,810.5 | -21.07% |
| CE Curtis Ellergodt Rothschild Investment LLC | 106 | $2,045 | $1,596.36 | -$448.64 | -21.94% |
| ABB Alexander Bjornager Bonde Danske Bank A/S | 500 | $9,645 | $7,522.5 | -$2,122.5 | -22.01% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 3 | $58.26 | $44.76 | -$13.5 | -23.17% |
| ASP Alan S. Parsow Elkhorn Partners Limited Partnership | 1,100 | $21,362 | $16,549.5 | -$4,812.5 | -22.53% |
Qxo Inc. (QXO) FAQ
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Qxo Inc. Profile
| Software Industry | Information Technology Sector | Bradley S. Jacobs CEO | NYSE Exchange | 82846H405 CUSIP |
| US Country | 7,794 Employees | 12 Jun 2024 Last Dividend | 6 Jun 2024 Last Split | - IPO Date |
Overview
QXO, Inc. is a distinguished entity operating within North America, providing a multifaceted array of business applications, technology solutions, and consultative services. With its headquarters nestled in Greenwich, Connecticut, the company carves its niche by serving primarily small and medium-sized enterprises (SMEs) in the manufacturing, distribution, and services sectors. Its operational spectrum is broad, extending from accounting and business management to sophisticated technological and consulting engagements, all tailored to enhance and streamline the operational efficiency of its clientele.
Products and Services
- Accounting and Business Management Solutions - QXO, Inc. offers customizable solutions that simplify complex financial transactions, improve accuracy, and promote effective business management.
- Financial Reporting - To facilitate informed decision-making, the company provides tools for comprehensive financial analysis and reporting.
- Enterprise Resource Planning (ERP) - QXO, Inc. delivers ERP solutions that integrate various functions of a business into a unified system, optimizing processes and enhancing performance.
- Human Capital Management - The company supports businesses in managing and optimizing their workforce through solutions that cover everything from payroll to talent acquisition and development.
- Warehouse Management Systems - To boost efficiency in inventory management and logistics, QXO, Inc. offers systems designed for the streamlined operation of warehouses.
- Customer Relationship Management (CRM) - With CRM solutions, the company enables businesses to better understand and manage their interactions and relationships with customers.
- Business Intelligence - QXO, Inc. provides tools and systems that assist in the analysis of business information, offering insights that drive business strategy and growth.
Beyond these core offerings, QXO, Inc. enriches its portfolio with value-added services that resonate with intricate business needs, encompassing:
- Consulting and Professional Services - Tailored consulting services aimed at addressing specific business challenges.
- Specialized Programming - Custom programming services to meet unique business requirements.
- Training and Technical Support - Comprehensive training and ongoing technical support to ensure the effective use and maintenance of the provided solutions.
The spectrum of its offerings extends further into Information Technology Managed Services, covering:
- Cybersecurity - Robust security solutions to protect against cyber threats.
- Application Hosting - Reliable hosting services that ensure applications are accessible and performant.
- Disaster Recovery and Business Continuity - Planning and solutions that reduce the impact of disruptive events on operations.
- Cloud Services - Scalable cloud computing solutions that cater to various business needs.
- Data Back-up, Network Maintenance, and Upgrade Services - Services designed to maintain and optimize IT infrastructure, ensuring business processes run smoothly without interruption.
