FEDEX CORP (FDX.DE) Stock Fundamental Analysis
FRA:FDX - Deutsche Boerse Ag - US31428X1063 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to FDX. FDX was compared to 15 industry peers in the Air Freight & Logistics industry. FDX has an average financial health and profitability rating. FDX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FDX had positive earnings in the past year.
In the past year FDX had a positive cash flow from operations.
In the past 5 years FDX has always been profitable.
In the past 5 years FDX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.54%, FDX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
FDX's Return On Equity of 14.67% is in line compared to the rest of the industry. FDX outperforms 53.33% of its industry peers.
The Return On Invested Capital of FDX (6.07%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FDX is in line with the industry average of 7.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.54% | ||
| ROE | 14.67% | ||
| ROIC | 6.07% |
ROA(3y)4.65%
ROA(5y)4.4%
ROE(3y)15.4%
ROE(5y)14.96%
ROIC(3y)6.15%
ROIC(5y)5.64%
1.3 Margins
Looking at the Profit Margin, with a value of 4.44%, FDX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
FDX's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 6.65%, FDX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of FDX has remained more or less at the same level.
FDX has a better Gross Margin (70.74%) than 80.00% of its industry peers.
In the last couple of years the Gross Margin of FDX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.65% | ||
| PM (TTM) | 4.44% | ||
| GM | 70.74% |
OM growth 3Y0.01%
OM growth 5Y0.72%
PM growth 3Y-7.43%
PM growth 5Y44.85%
GM growth 3Y0.01%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FDX is destroying value.
FDX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FDX has been reduced compared to 5 years ago.
FDX has a better debt/assets ratio than last year.
2.2 Solvency
FDX has an Altman-Z score of 2.55. This is not the best score and indicates that FDX is in the grey zone with still only limited risk for bankruptcy at the moment.
FDX has a Altman-Z score of 2.55. This is in the better half of the industry: FDX outperforms 73.33% of its industry peers.
The Debt to FCF ratio of FDX is 7.57, which is on the high side as it means it would take FDX, 7.57 years of fcf income to pay off all of its debts.
FDX has a Debt to FCF ratio (7.57) which is in line with its industry peers.
FDX has a Debt/Equity ratio of 0.73. This is a neutral value indicating FDX is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.73, FDX is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.57 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.82
WACC7.38%
2.3 Liquidity
A Current Ratio of 1.23 indicates that FDX should not have too much problems paying its short term obligations.
FDX has a Current ratio of 1.23. This is amongst the best in the industry. FDX outperforms 86.67% of its industry peers.
FDX has a Quick Ratio of 1.19. This is a normal value and indicates that FDX is financially healthy and should not expect problems in meeting its short term obligations.
FDX's Quick ratio of 1.19 is amongst the best of the industry. FDX outperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.18% over the past year.
FDX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.78% yearly.
The Revenue has decreased by -0.63% in the past year.
FDX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.70% yearly.
EPS 1Y (TTM)0.18%
EPS 3Y-0.68%
EPS 5Y2.78%
EPS Q2Q%1.5%
Revenue 1Y (TTM)-0.63%
Revenue growth 3Y1.46%
Revenue growth 5Y4.7%
Sales Q2Q%-0.89%
3.2 Future
FDX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.37% yearly.
The Revenue is expected to grow by 3.61% on average over the next years.
EPS Next Y7.84%
EPS Next 2Y12.25%
EPS Next 3Y12.03%
EPS Next 5Y12.37%
Revenue Next Year0.07%
Revenue Next 2Y1.89%
Revenue Next 3Y2.58%
Revenue Next 5Y3.61%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.80, the valuation of FDX can be described as correct.
Based on the Price/Earnings ratio, FDX is valued a bit cheaper than 73.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of FDX to the average of the S&P500 Index (29.35), we can say FDX is valued slightly cheaper.
FDX is valuated reasonably with a Price/Forward Earnings ratio of 11.16.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FDX indicates a somewhat cheap valuation: FDX is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. FDX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.8 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
FDX's Enterprise Value to EBITDA ratio is in line with the industry average.
FDX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. FDX is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.78 | ||
| EV/EBITDA | 7.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FDX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of FDX may justify a higher PE ratio.
A more expensive valuation may be justified as FDX's earnings are expected to grow with 12.03% in the coming years.
PEG (NY)1.89
PEG (5Y)5.33
EPS Next 2Y12.25%
EPS Next 3Y12.03%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.21%. Purely for dividend investing, there may be better candidates out there.
FDX's Dividend Yield is slightly below the industry average, which is at 3.94.
FDX's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
The dividend of FDX is nicely growing with an annual growth rate of 14.41%!
Dividend Growth(5Y)14.41%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
33.49% of the earnings are spent on dividend by FDX. This is a low number and sustainable payout ratio.
The dividend of FDX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.49%
EPS Next 2Y12.25%
EPS Next 3Y12.03%
FRA:FDX (3/7/2025, 7:00:00 PM)
230.55
-0.1 (-0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners78.66%
Inst Owner ChangeN/A
Ins Owners8.23%
Ins Owner ChangeN/A
Market Cap55.53B
Analysts76
Price Target313.26 (35.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend4.68
Dividend Growth(5Y)14.41%
DP33.49%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.07%
Min EPS beat(2)-25.05%
Max EPS beat(2)2.91%
EPS beat(4)3
Avg EPS beat(4)-2.79%
Min EPS beat(4)-25.05%
Max EPS beat(4)10.87%
EPS beat(8)5
Avg EPS beat(8)3.45%
EPS beat(12)6
Avg EPS beat(12)0.22%
EPS beat(16)8
Avg EPS beat(16)0.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-1.68%
Revenue beat(4)0
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-2.35%
Revenue beat(12)0
Avg Revenue beat(12)-2.32%
Revenue beat(16)3
Avg Revenue beat(16)-0.91%
PT rev (1m)1.18%
PT rev (3m)4.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.5%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.8 | ||
| Fwd PE | 11.16 | ||
| P/S | 0.69 | ||
| P/FCF | 22.78 | ||
| P/OCF | 8.85 | ||
| P/B | 2.28 | ||
| P/tB | 2.99 | ||
| EV/EBITDA | 7.43 |
EPS(TTM)15.58
EY6.76%
EPS(NY)20.67
Fwd EY8.96%
FCF(TTM)10.12
FCFY4.39%
OCF(TTM)26.05
OCFY11.3%
SpS334.21
BVpS101.19
TBVpS77.13
PEG (NY)1.89
PEG (5Y)5.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.54% | ||
| ROE | 14.67% | ||
| ROCE | 8.18% | ||
| ROIC | 6.07% | ||
| ROICexc | 6.53% | ||
| ROICexgc | 7.21% | ||
| OM | 6.65% | ||
| PM (TTM) | 4.44% | ||
| GM | 70.74% | ||
| FCFM | 3.03% |
ROA(3y)4.65%
ROA(5y)4.4%
ROE(3y)15.4%
ROE(5y)14.96%
ROIC(3y)6.15%
ROIC(5y)5.64%
ROICexc(3y)6.77%
ROICexc(5y)6.22%
ROICexgc(3y)7.54%
ROICexgc(5y)6.96%
ROCE(3y)8.29%
ROCE(5y)7.61%
ROICexcg growth 3Y-1.89%
ROICexcg growth 5Y-5.08%
ROICexc growth 3Y-1.17%
ROICexc growth 5Y-3.51%
OM growth 3Y0.01%
OM growth 5Y0.72%
PM growth 3Y-7.43%
PM growth 5Y44.85%
GM growth 3Y0.01%
GM growth 5Y0.07%
F-Score6
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.57 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 96.5% | ||
| Cap/Sales | 4.77% | ||
| Interest Coverage | 7.62 | ||
| Cash Conversion | 67.24% | ||
| Profit Quality | 68.19% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 2.55 |
F-Score6
WACC7.38%
ROIC/WACC0.82
Cap/Depr(3y)146.31%
Cap/Depr(5y)151.28%
Cap/Sales(3y)6.66%
Cap/Sales(5y)7.09%
Profit Quality(3y)73.43%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.18%
EPS 3Y-0.68%
EPS 5Y2.78%
EPS Q2Q%1.5%
EPS Next Y7.84%
EPS Next 2Y12.25%
EPS Next 3Y12.03%
EPS Next 5Y12.37%
Revenue 1Y (TTM)-0.63%
Revenue growth 3Y1.46%
Revenue growth 5Y4.7%
Sales Q2Q%-0.89%
Revenue Next Year0.07%
Revenue Next 2Y1.89%
Revenue Next 3Y2.58%
Revenue Next 5Y3.61%
EBIT growth 1Y-2.14%
EBIT growth 3Y1.47%
EBIT growth 5Y5.45%
EBIT Next Year72.75%
EBIT Next 3Y27.1%
EBIT Next 5Y17.64%
FCF growth 1Y25.27%
FCF growth 3Y-9.64%
FCF growth 5Y91.11%
OCF growth 1Y-23.23%
OCF growth 3Y-6.4%
OCF growth 5Y8.17%