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 13 industry peers in the Air Freight & Logistics industry. Both the profitability and the financial health of FDX get a neutral evaluation. Nothing too spectacular is happening here. FDX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FDX was profitable.
FDX had a positive operating cash flow in the past year.
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
FDX has a Return On Assets of 4.54%. This is comparable to the rest of the industry: FDX outperforms 58.33% of its industry peers.
FDX's Return On Equity of 14.67% is in line compared to the rest of the industry. FDX outperforms 50.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.07%, FDX is in line with its industry, outperforming 58.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FDX is in line with the industry average of 7.26%.
| 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
With a Profit Margin value of 4.44%, FDX perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
FDX's Profit Margin has improved in the last couple of years.
FDX has a Operating Margin of 6.65%. This is comparable to the rest of the industry: FDX outperforms 58.33% of its industry peers.
In the last couple of years the Operating Margin of FDX has remained more or less at the same level.
The Gross Margin of FDX (70.74%) is better than 83.33% of its industry peers.
FDX's Gross Margin has been stable in the last couple of years.
| 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.
FDX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FDX has been reduced compared to a year ago.
2.2 Solvency
FDX has an Altman-Z score of 2.54. 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's Altman-Z score of 2.54 is amongst the best of the industry. FDX outperforms 83.33% 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.
Looking at the Debt to FCF ratio, with a value of 7.57, FDX is in line with its industry, outperforming 41.67% of the companies in the same industry.
FDX has a Debt/Equity ratio of 0.73. This is a neutral value indicating FDX is somewhat dependend on debt financing.
FDX has a better Debt to Equity ratio (0.73) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.57 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.71
WACC8.58%
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 better Current ratio (1.23) than 83.33% 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.
Looking at the Quick ratio, with a value of 1.19, FDX belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
FDX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.18%.
The Earnings Per Share has been growing slightly by 2.78% on average over the past years.
The Revenue has decreased by -0.63% in the past year.
The Revenue has been growing slightly by 4.70% on average over the past years.
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
The Earnings Per Share is expected to grow by 12.37% on average over the next years. This is quite good.
FDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.61% yearly.
EPS Next Y7.74%
EPS Next 2Y12.19%
EPS Next 3Y11.9%
EPS Next 5Y12.37%
Revenue Next Year0%
Revenue Next 2Y2.05%
Revenue Next 3Y2.77%
Revenue Next 5Y3.61%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 14.77 indicates a correct valuation of FDX.
FDX's Price/Earnings ratio is in line with the industry average.
FDX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.15 indicates a reasonable valuation of FDX.
FDX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FDX is cheaper than 66.67% of the companies in the same industry.
FDX is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 11.15 |
4.2 Price Multiples
FDX's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, FDX is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.74 | ||
| EV/EBITDA | 7.38 |
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.
PEG (NY)1.91
PEG (5Y)5.32
EPS Next 2Y12.19%
EPS Next 3Y11.9%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.02, FDX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.28, FDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
On average, the dividend of FDX grows each year by 14.41%, which is quite nice.
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.
FDX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.49%
EPS Next 2Y12.19%
EPS Next 3Y11.9%
FEDEX CORP
FRA:FDX (2/5/2025, 10:43:41 AM)
241.85
+1.6 (+0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners80.32%
Inst Owner ChangeN/A
Ins Owners8.21%
Ins Owner ChangeN/A
Market Cap58.25B
Analysts76.76
Price Target309.6 (28.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend5.08
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)-9.27%
PT rev (3m)7.8%
EPS NQ rev (1m)-5.5%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)-1.99%
EPS NY rev (3m)-8.87%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-2.74%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 11.15 | ||
| P/S | 0.69 | ||
| P/FCF | 22.74 | ||
| P/OCF | 8.84 | ||
| P/B | 2.28 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 7.38 |
EPS(TTM)16.37
EY6.77%
EPS(NY)21.69
Fwd EY8.97%
FCF(TTM)10.63
FCFY4.4%
OCF(TTM)27.37
OCFY11.32%
SpS351.09
BVpS106.3
TBVpS81.03
PEG (NY)1.91
PEG (5Y)5.32
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 | 2.54 |
F-Score6
WACC8.58%
ROIC/WACC0.71
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 Y7.74%
EPS Next 2Y12.19%
EPS Next 3Y11.9%
EPS Next 5Y12.37%
Revenue 1Y (TTM)-0.63%
Revenue growth 3Y1.46%
Revenue growth 5Y4.7%
Sales Q2Q%-0.89%
Revenue Next Year0%
Revenue Next 2Y2.05%
Revenue Next 3Y2.77%
Revenue Next 5Y3.61%
EBIT growth 1Y-2.14%
EBIT growth 3Y1.47%
EBIT growth 5Y5.45%
EBIT Next Year72.75%
EBIT Next 3Y27.06%
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%