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 14 industry peers in the Air Freight & Logistics industry. While FDX has a great profitability rating, there are some minor concerns on its financial health. FDX has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
FDX had positive earnings in the past year.
FDX had a positive operating cash flow in the past year.
FDX had positive earnings in 4 of the past 5 years.
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 4.60%, FDX is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
FDX has a Return On Equity (14.65%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 6.22%, FDX is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FDX is in line with the industry average of 7.44%.
The 3 year average ROIC (6.15%) for FDX is below the current ROIC(6.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 14.65% | ||
| ROIC | 6.22% |
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
The Profit Margin of FDX (4.45%) is better than 71.43% of its industry peers.
In the last couple of years the Profit Margin of FDX has grown nicely.
FDX's Operating Margin of 6.80% is fine compared to the rest of the industry. FDX outperforms 71.43% of its industry peers.
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 (70.84%) than 85.71% 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 | 6.8% | ||
| PM (TTM) | 4.45% | ||
| GM | 70.84% |
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.
Compared to 1 year ago, FDX has less shares outstanding
FDX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FDX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.55 indicates that FDX is not a great score, but indicates 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 78.57% of its industry peers.
The Debt to FCF ratio of FDX is 5.87, which is a neutral value as it means it would take FDX, 5.87 years of fcf income to pay off all of its debts.
FDX's Debt to FCF ratio of 5.87 is in line compared to the rest of the industry. FDX outperforms 57.14% of 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.
FDX's Debt to Equity ratio of 0.73 is fine compared to the rest of the industry. FDX outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.87
WACC7.18%
2.3 Liquidity
A Current Ratio of 1.24 indicates that FDX should not have too much problems paying its short term obligations.
FDX's Current ratio of 1.24 is fine compared to the rest of the industry. FDX outperforms 71.43% of its industry peers.
A Quick Ratio of 1.19 indicates that FDX should not have too much problems paying its short term obligations.
FDX's Quick ratio of 1.19 is fine compared to the rest of the industry. FDX outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| 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 2.36%.
FDX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.92% yearly.
EPS 1Y (TTM)2.36%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%12.2%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.5%
3.2 Future
Based on estimates for the next years, FDX will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.47% on average per year.
FDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.58% yearly.
EPS Next Y2.85%
EPS Next 2Y8.44%
EPS Next 3Y9.33%
EPS Next 5Y14.47%
Revenue Next Year2.13%
Revenue Next 2Y2.94%
Revenue Next 3Y3.09%
Revenue Next 5Y3.58%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.94 indicates a correct valuation of FDX.
Based on the Price/Earnings ratio, FDX is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.41. FDX is valued rather cheaply when compared to this.
FDX is valuated correctly with a Price/Forward Earnings ratio of 12.58.
Based on the Price/Forward Earnings ratio, FDX is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FDX to the average of the S&P500 Index (35.19), we can say FDX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 12.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FDX is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as FDX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.47 | ||
| EV/EBITDA | 6.96 |
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.
FDX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.54
PEG (5Y)0.93
EPS Next 2Y8.44%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.43%. Purely for dividend investing, there may be better candidates out there.
FDX's Dividend Yield is comparable with the industry average which is at 3.53.
Compared to an average S&P500 Dividend Yield of 2.35, FDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
The dividend of FDX is nicely growing with an annual growth rate of 16.33%!
Dividend Growth(5Y)16.33%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
FDX pays out 33.69% of its income as dividend. This is a sustainable payout ratio.
FDX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.69%
EPS Next 2Y8.44%
EPS Next 3Y9.33%
FRA:FDX (7/11/2025, 7:00:00 PM)
201.85
-3.15 (-1.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners77.86%
Inst Owner ChangeN/A
Ins Owners8.26%
Ins Owner ChangeN/A
Market Cap48.36B
Analysts76.11
Price Target243.82 (20.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend4.74
Dividend Growth(5Y)16.33%
DP33.69%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.7%
Min EPS beat(2)-1.52%
Max EPS beat(2)2.91%
EPS beat(4)2
Avg EPS beat(4)-5.89%
Min EPS beat(4)-25.05%
Max EPS beat(4)2.91%
EPS beat(8)4
Avg EPS beat(8)0.31%
EPS beat(12)6
Avg EPS beat(12)0.27%
EPS beat(16)7
Avg EPS beat(16)0.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)0.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)0.3%
Revenue beat(8)1
Avg Revenue beat(8)-1.87%
Revenue beat(12)1
Avg Revenue beat(12)-2.28%
Revenue beat(16)3
Avg Revenue beat(16)-1.31%
PT rev (1m)-1.58%
PT rev (3m)-10.28%
EPS NQ rev (1m)-1.93%
EPS NQ rev (3m)-3.52%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-1.99%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 12.58 | ||
| P/S | 0.64 | ||
| P/FCF | 16.47 | ||
| P/OCF | 7.83 | ||
| P/B | 2.12 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 6.96 |
EPS(TTM)15.6
EY7.73%
EPS(NY)16.05
Fwd EY7.95%
FCF(TTM)12.26
FCFY6.07%
OCF(TTM)25.77
OCFY12.77%
SpS313.71
BVpS95.41
TBVpS72.79
PEG (NY)4.54
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 14.65% | ||
| ROCE | 8.39% | ||
| ROIC | 6.22% | ||
| ROICexc | 6.7% | ||
| ROICexgc | 7.41% | ||
| OM | 6.8% | ||
| PM (TTM) | 4.45% | ||
| GM | 70.84% | ||
| FCFM | 3.91% |
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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.87 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 87.78% | ||
| Cap/Sales | 4.31% | ||
| Interest Coverage | 7.57 | ||
| Cash Conversion | 70.19% | ||
| Profit Quality | 87.7% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 2.55 |
F-Score6
WACC7.18%
ROIC/WACC0.87
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)2.36%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%12.2%
EPS Next Y2.85%
EPS Next 2Y8.44%
EPS Next 3Y9.33%
EPS Next 5Y14.47%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.5%
Revenue Next Year2.13%
Revenue Next 2Y2.94%
Revenue Next 3Y3.09%
Revenue Next 5Y3.58%
EBIT growth 1Y-2.72%
EBIT growth 3Y1.47%
EBIT growth 5Y5.45%
EBIT Next Year67.17%
EBIT Next 3Y24.98%
EBIT Next 5Y16.62%
FCF growth 1Y63.46%
FCF growth 3Y-9.64%
FCF growth 5Y91.11%
OCF growth 1Y-18.96%
OCF growth 3Y-6.4%
OCF growth 5Y8.17%