FEDEX CORP (FDX.DE) Stock Fundamental Analysis
FRA:FDX - Deutsche Boerse Ag - US31428X1063 - Common Stock - Currency: EUR
Overall FDX gets a fundamental rating of 6 out of 10. We evaluated FDX against 14 industry peers in the Air Freight & Logistics industry. FDX has an excellent profitability rating, but there are some minor concerns on its financial health. FDX has a correct valuation and a medium 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
The Return On Assets of FDX (4.60%) is better than 71.43% of its industry peers.
With a Return On Equity value of 14.65%, FDX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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.
FDX had an Average Return On Invested Capital over the past 3 years of 6.15%. This is in line with the industry average of 6.95%.
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
FDX has a better Profit Margin (4.45%) than 71.43% of its industry peers.
FDX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.80%, FDX is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
FDX's Operating Margin has been stable in the last couple of years.
FDX's Gross Margin of 70.84% is amongst the best of the industry. FDX outperforms 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
FDX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FDX has been reduced compared to 1 year ago.
The number of shares outstanding for FDX has been reduced compared to 5 years ago.
Compared to 1 year ago, FDX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.49 indicates that FDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FDX has a better Altman-Z score (2.49) than 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.
With a Debt to FCF ratio value of 5.87, FDX perfoms like the industry average, outperforming 57.14% 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 Debt to Equity ratio of 0.73. This is in the better half of the industry: FDX outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.86
WACC7.23%
2.3 Liquidity
A Current Ratio of 1.24 indicates that FDX should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.24, FDX belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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.
With an excellent Quick ratio value of 1.19, FDX belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.33% 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 been growing slightly by 0.34% 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)1.33%
EPS 3Y-0.68%
EPS 5Y2.78%
EPS Q2Q%16.84%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y1.46%
Revenue growth 5Y4.7%
Sales Q2Q%1.94%
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 11.49% yearly.
The Revenue is expected to grow by 3.01% on average over the next years.
EPS Next Y3.22%
EPS Next 2Y6.78%
EPS Next 3Y9.45%
EPS Next 5Y11.49%
Revenue Next Year-0.19%
Revenue Next 2Y1.47%
Revenue Next 3Y2.24%
Revenue Next 5Y3.01%
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
Based on the Price/Earnings ratio of 12.16, the valuation of FDX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of FDX indicates a somewhat cheap valuation: FDX is cheaper than 64.29% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.92. FDX is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.52, which indicates a very decent valuation of FDX.
Based on the Price/Forward Earnings ratio, FDX is valued cheaper than 92.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, FDX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 10.52 |
4.2 Price Multiples
FDX's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as FDX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.91 | ||
| EV/EBITDA | 6.45 |
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)3.78
PEG (5Y)4.38
EPS Next 2Y6.78%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.66%.
In the last 3 months the price of FDX has falen by -27.82%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.68, FDX pays a bit more dividend than its industry peers.
FDX's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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
33.69% 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.
DP33.69%
EPS Next 2Y6.78%
EPS Next 3Y9.45%
FRA:FDX (4/24/2025, 7:00:00 PM)
187.08
-0.3 (-0.16%)
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 Cap44.82B
Analysts76.76
Price Target271.77 (45.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend4.47
Dividend Growth(5Y)14.41%
DP33.69%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.64%
Min EPS beat(2)-1.64%
Max EPS beat(2)2.91%
EPS beat(4)2
Avg EPS beat(4)-5.92%
Min EPS beat(4)-25.05%
Max EPS beat(4)2.91%
EPS beat(8)4
Avg EPS beat(8)0.29%
EPS beat(12)6
Avg EPS beat(12)0.26%
EPS beat(16)7
Avg EPS beat(16)0%
Revenue beat(2)1
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)0.25%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)0.25%
Revenue beat(8)1
Avg Revenue beat(8)-1.88%
Revenue beat(12)1
Avg Revenue beat(12)-2.29%
Revenue beat(16)3
Avg Revenue beat(16)-1.31%
PT rev (1m)-13.25%
PT rev (3m)-20.36%
EPS NQ rev (1m)-11.36%
EPS NQ rev (3m)-12.68%
EPS NY rev (1m)-4.28%
EPS NY rev (3m)-6.1%
Revenue NQ rev (1m)-1.6%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 10.52 | ||
| P/S | 0.58 | ||
| P/FCF | 14.91 | ||
| P/OCF | 7.09 | ||
| P/B | 1.92 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 6.45 |
EPS(TTM)15.39
EY8.23%
EPS(NY)17.79
Fwd EY9.51%
FCF(TTM)12.54
FCFY6.71%
OCF(TTM)26.38
OCFY14.1%
SpS321.07
BVpS97.65
TBVpS74.5
PEG (NY)3.78
PEG (5Y)4.38
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 | 2.49 |
F-Score6
WACC7.23%
ROIC/WACC0.86
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)1.33%
EPS 3Y-0.68%
EPS 5Y2.78%
EPS Q2Q%16.84%
EPS Next Y3.22%
EPS Next 2Y6.78%
EPS Next 3Y9.45%
EPS Next 5Y11.49%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y1.46%
Revenue growth 5Y4.7%
Sales Q2Q%1.94%
Revenue Next Year-0.19%
Revenue Next 2Y1.47%
Revenue Next 3Y2.24%
Revenue Next 5Y3.01%
EBIT growth 1Y-2.72%
EBIT growth 3Y1.47%
EBIT growth 5Y5.45%
EBIT Next Year67.62%
EBIT Next 3Y25.29%
EBIT Next 5Y16.8%
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%