QXO (QXO) Stock Analysis & Winston Score

QXO is a building products distributor that sells roofing, windows, doors, and other construction materials to contractors, homebuilders, and repair professionals across the United States. The company was formed when tech entrepreneur Brad Jacobs took control of Beacon Roofing Supply in early 2025, rebranding it as QXO with the goal of building a large-scale distribution business in the fragmented building products industry.

QXO makes money by buying building materials from manufacturers and reselling them to customers at a markup, a model typical of wholesale distributors. The company operates hundreds of distribution branches across North America and generates several billion dollars in annual revenue. Its competitive position depends on branch density, supplier relationships, and logistics efficiency — advantages that take years to replicate. The main risk is that QXO is currently unprofitable and is pursuing an aggressive acquisition strategy, meaning execution risk and debt levels will be closely watched as it attempts to consolidate a historically fragmented market.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

>+1,000% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-585.5% YoY

YoY Growth Rate

Earnings declining

Insider Activity

0.3%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$2.4B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

QXO grew revenue 14782% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

24.1%

Thin — 24.1% gross margin

Operating Margin

-3.2%

Losing money on operations — -3.2%

ROCE

-0.5%

Weak — -0.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+11938.9%

Fast-growing sales (11938.9% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

2.7%

Thin free cash flow (2.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.39

Conservative — low debt load (0.39)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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