FEDEX CORP (FDX)
US31428X1063 - Common Stock
Taking everything into account, FDX scores 6 out of 10 in our fundamental rating. FDX was compared to 20 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 correct valuation and a medium growth rate. Finally FDX also has an excellent dividend rating. These ratings could make FDX a good candidate for dividend investing.
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.
FDX had positive earnings in each of the past 5 years.
FDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FDX has a Return On Assets of 4.66%. This is in the better half of the industry: FDX outperforms 73.68% of its industry peers.
FDX's Return On Equity of 14.87% is fine compared to the rest of the industry. FDX outperforms 78.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.98%, FDX is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FDX is below the industry average of 10.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 14.87% | ||
| ROIC | 5.98% |
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's Profit Margin of 4.61% is fine compared to the rest of the industry. FDX outperforms 78.95% of its industry peers.
FDX's Profit Margin has improved in the last couple of years.
FDX has a better Operating Margin (6.69%) than 78.95% of its industry peers.
FDX's Operating Margin has been stable in the last couple of years.
FDX's Gross Margin of 70.49% is amongst the best of the industry. FDX outperforms 94.74% 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 | 6.69% | ||
| PM (TTM) | 4.61% | ||
| GM | 70.49% |
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
An Altman-Z score of 2.59 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 2.59. This is comparable to the rest of the industry: FDX outperforms 57.89% of its industry peers.
The Debt to FCF ratio of FDX is 7.75, which is on the high side as it means it would take FDX, 7.75 years of fcf income to pay off all of its debts.
FDX has a Debt to FCF ratio of 7.75. This is in the better half of the industry: FDX outperforms 68.42% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that FDX is somewhat dependend on debt financing.
FDX has a Debt to Equity ratio of 0.72. This is comparable to the rest of the industry: FDX outperforms 52.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 7.75 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.73
WACC8.17%
2.3 Liquidity
A Current Ratio of 1.28 indicates that FDX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.28, FDX perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
FDX has a Quick Ratio of 1.24. 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 1.24, FDX is in line with its industry, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.18% over the past year.
Measured over the past 5 years, FDX shows a small growth in Earnings Per Share. The EPS has been growing by 2.78% on average per year.
The Revenue has decreased by -2.73% in the past year.
Measured over the past years, FDX shows a small growth in Revenue. The Revenue has been growing by 4.70% on average per year.
EPS 1Y (TTM)0.18%
EPS 3Y-0.68%
EPS 5Y2.78%
EPS Q2Q%1.5%
Revenue 1Y (TTM)-2.73%
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 11.71% yearly.
Based on estimates for the next years, FDX will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
EPS Next Y9.93%
EPS Next 2Y12.64%
EPS Next 3Y11.94%
EPS Next 5Y11.71%
Revenue Next Year0.92%
Revenue Next 2Y2.62%
Revenue Next 3Y3.25%
Revenue Next 5Y3.74%
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 16.30, the valuation of FDX can be described as correct.
FDX's Price/Earnings ratio is a bit cheaper when compared to the industry. FDX is cheaper than 73.68% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, FDX is valued a bit cheaper.
FDX is valuated correctly with a Price/Forward Earnings ratio of 12.20.
89.47% of the companies in the same industry are more expensive than FDX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.83. FDX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 12.2 |
4.2 Price Multiples
FDX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FDX is cheaper than 73.68% of the companies in the same industry.
FDX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FDX is cheaper than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.75 | ||
| EV/EBITDA | 8.05 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FDX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.64
PEG (5Y)5.87
EPS Next 2Y12.64%
EPS Next 3Y11.94%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.00%.
Compared to an average industry Dividend Yield of 2.80, FDX pays a better dividend. On top of this FDX pays more dividend than 84.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, FDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
5.2 History
The dividend of FDX is nicely growing with an annual growth rate of 14.41%!
FDX has been paying a dividend for at least 10 years, so it has a reliable track record.
FDX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.41%
Div Incr Years4
Div Non Decr Years22
5.3 Sustainability
FDX pays out 31.68% of its income as dividend. This is a sustainable payout ratio.
The dividend of FDX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.68%
EPS Next 2Y12.64%
EPS Next 3Y11.94%
FEDEX CORP
NYSE:FDX (12/20/2024, 8:10:00 PM)
After market: 277 +1.27 (+0.46%)275.73
-0.15 (-0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners80.32%
Inst Owner Change-0.4%
Ins Owners8.21%
Ins Owner Change0.2%
Market Cap67.37B
Analysts77.84
Price Target315.22 (14.32%)
Short Float %1.8%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Dividend Growth(5Y)14.41%
DP31.68%
Div Incr Years4
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-12.48%
Min EPS beat(2)-25.05%
Max EPS beat(2)0.1%
EPS beat(4)2
Avg EPS beat(4)-4.91%
Min EPS beat(4)-25.05%
Max EPS beat(4)10.87%
EPS beat(8)5
Avg EPS beat(8)4.55%
EPS beat(12)6
Avg EPS beat(12)0.95%
EPS beat(16)8
Avg EPS beat(16)1.52%
Revenue beat(2)0
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-0.81%
Revenue beat(4)0
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-2.74%
Revenue beat(12)1
Avg Revenue beat(12)-1.9%
Revenue beat(16)4
Avg Revenue beat(16)-0.51%
PT rev (1m)0.77%
PT rev (3m)-3.89%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-15.54%
EPS NY rev (1m)-0.87%
EPS NY rev (3m)-7.03%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-2.54%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 12.2 | ||
| P/S | 0.77 | ||
| P/FCF | 25.75 | ||
| P/OCF | 9.27 | ||
| P/B | 2.48 | ||
| P/tB | 3.26 | ||
| EV/EBITDA | 8.05 |
EPS(TTM)16.92
EY6.14%
EPS(NY)22.6
Fwd EY8.2%
FCF(TTM)10.71
FCFY3.88%
OCF(TTM)29.75
OCFY10.79%
SpS358.51
BVpS111.23
TBVpS84.58
PEG (NY)1.64
PEG (5Y)5.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 14.87% | ||
| ROCE | 8.07% | ||
| ROIC | 5.98% | ||
| ROICexc | 6.52% | ||
| ROICexgc | 7.22% | ||
| OM | 6.69% | ||
| PM (TTM) | 4.61% | ||
| GM | 70.49% | ||
| FCFM | 2.99% |
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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 7.75 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 108.36% | ||
| Cap/Sales | 5.31% | ||
| Interest Coverage | 7.97 | ||
| Cash Conversion | 71.59% | ||
| Profit Quality | 64.74% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 2.59 |
F-Score6
WACC8.17%
ROIC/WACC0.73
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 Y9.93%
EPS Next 2Y12.64%
EPS Next 3Y11.94%
EPS Next 5Y11.71%
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y1.46%
Revenue growth 5Y4.7%
Sales Q2Q%-0.89%
Revenue Next Year0.92%
Revenue Next 2Y2.62%
Revenue Next 3Y3.25%
Revenue Next 5Y3.74%
EBIT growth 1Y2.18%
EBIT growth 3Y1.47%
EBIT growth 5Y5.45%
EBIT Next Year75.82%
EBIT Next 3Y28.43%
EBIT Next 5Y17.16%
FCF growth 1Y-9.1%
FCF growth 3Y-9.64%
FCF growth 5Y91.11%
OCF growth 1Y-22.3%
OCF growth 3Y-6.4%
OCF growth 5Y8.17%