FEDEX CORP (NYSE:FDX), an undervalued stock with good fundamentals.

Uncover the potential of FEDEX CORP (NYSE:FDX) as our stock screener's choice for an undervalued stock. FDX maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

How We Gauge Valuation for FDX

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. FDX scores a 7 out of 10:

• The Price/Earnings ratio is 11.67, which indicates a very decent valuation of FDX.
• Based on the Price/Earnings ratio, FDX is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
• When comparing the Price/Earnings ratio of FDX to the average of the S&P500 Index (27.63), we can say FDX is valued rather cheaply.
• Based on the Price/Forward Earnings ratio of 10.10, the valuation of FDX can be described as reasonable.
• Based on the Price/Forward Earnings ratio, FDX is valued cheaper than 90.91% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of FDX to the average of the S&P500 Index (20.85), we can say FDX is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, FDX is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
• FDX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FDX is cheaper than 86.36% of the companies in the same industry.
• FDX has a very decent profitability rating, which may justify a higher PE ratio.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, FDX has achieved a 7:

• The Return On Assets of FDX (4.60%) is better than 72.73% of its industry peers.
• With a decent Return On Equity value of 14.65%, FDX is doing good in the industry, outperforming 77.27% of the companies in the same industry.
• With a decent Return On Invested Capital value of 6.22%, FDX is doing good in the industry, outperforming 68.18% of the companies in the same industry.
• The last Return On Invested Capital (6.22%) for FDX is above the 3 year average (6.15%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 4.45%, FDX is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
• In the last couple of years the Profit Margin of FDX has grown nicely.
• FDX has a Operating Margin of 6.80%. This is in the better half of the industry: FDX outperforms 77.27% of its industry peers.
• Looking at the Gross Margin, with a value of 70.84%, FDX belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.

A Closer Look at Health for FDX

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. FDX scores a 5 out of 10:

• Looking at the Debt to FCF ratio, with a value of 5.87, FDX is in the better half of the industry, outperforming 72.73% of the companies in the same industry.

Growth Insights: FDX

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. FDX has received a 4 out of 10:

• Based on estimates for the next years, FDX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.49% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of FDX contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.