FEDEX CORP (FDX) Stock Fundamental Analysis
NYSE:FDX - New York Stock Exchange, Inc. - US31428X1063 - Common Stock
We assign a fundamental rating of 6 out of 10 to FDX. FDX was compared to 21 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 decent growth rate and is not valued too expensively. FDX also has an excellent dividend rating. These ratings would make FDX suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year FDX was profitable.
FDX had a positive operating cash flow in the past year.
FDX had positive earnings in each 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 4.54%, FDX is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
FDX has a better Return On Equity (14.67%) than 78.95% of its industry peers.
The Return On Invested Capital of FDX (6.07%) is better than 68.42% of its industry peers.
FDX had an Average Return On Invested Capital over the past 3 years of 6.15%. This is below the industry average of 10.93%.
| 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
FDX has a Profit Margin of 4.44%. This is in the better half of the industry: FDX outperforms 78.95% of its industry peers.
In the last couple of years the Profit Margin of FDX has grown nicely.
FDX has a better Operating Margin (6.65%) 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 70.74% is amongst the best of the industry. FDX outperforms 94.74% 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
FDX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FDX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FDX has less shares outstanding
FDX has a better debt/assets ratio than last year.
2.2 Solvency
FDX has an Altman-Z score of 2.61. 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 (2.61) which is in line with 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's Debt to FCF ratio of 7.57 is fine compared to the rest of the industry. FDX outperforms 68.42% 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 has a Debt to Equity ratio (0.73) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.57 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.74
WACC8.24%
2.3 Liquidity
FDX has a Current Ratio of 1.23. 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 Current ratio, with a value of 1.23, FDX is in line with its industry, outperforming 52.63% 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.
FDX has a Quick ratio of 1.19. This is comparable to the rest of the industry: FDX outperforms 52.63% 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.
FDX shows a decrease in Revenue. In the last year, the revenue decreased by -0.63%.
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
Based on estimates for the next years, FDX will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.37% on average per year.
The Revenue is expected to grow by 3.61% on average over the next years.
EPS Next Y9.93%
EPS Next 2Y12.64%
EPS Next 3Y11.94%
EPS Next 5Y12.37%
Revenue Next Year0.04%
Revenue Next 2Y2.05%
Revenue Next 3Y2.96%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.29, the valuation of FDX can be described as correct.
Based on the Price/Earnings ratio, FDX is valued a bit cheaper than 78.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. FDX is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.19, the valuation of FDX can be described as correct.
FDX's Price/Forward Earnings ratio is rather cheap when compared to the industry. FDX is cheaper than 89.47% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. FDX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.29 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
78.95% of the companies in the same industry are more expensive than FDX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FDX indicates a somewhat cheap valuation: FDX is cheaper than 73.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.07 | ||
| EV/EBITDA | 8.03 |
4.3 Compensation for Growth
FDX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FDX may justify a higher PE ratio.
PEG (NY)1.64
PEG (5Y)5.86
EPS Next 2Y12.64%
EPS Next 3Y11.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.99%, FDX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.64, 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 2.28, FDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
On average, the dividend of FDX grows each year by 14.41%, which is quite nice.
FDX has paid a dividend for at least 10 years, which is a reliable track record.
FDX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.41%
Div Incr Years4
Div Non Decr Years22
5.3 Sustainability
FDX pays out 33.49% 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.
DP33.49%
EPS Next 2Y12.64%
EPS Next 3Y11.94%
FEDEX CORP
NYSE:FDX (1/21/2025, 8:04:00 PM)
After market: 275 -0.57 (-0.21%)275.57
+0.47 (+0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners80.32%
Inst Owner Change-0.26%
Ins Owners8.21%
Ins Owner Change-0.08%
Market Cap66.37B
Analysts76.76
Price Target329.21 (19.47%)
Short Float %1.61%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend5.08
Dividend Growth(5Y)14.41%
DP33.49%
Div Incr Years4
Div Non Decr Years22
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.78%
Min EPS beat(2)-25.05%
Max EPS beat(2)1.49%
EPS beat(4)3
Avg EPS beat(4)-3.15%
Min EPS beat(4)-25.05%
Max EPS beat(4)10.87%
EPS beat(8)5
Avg EPS beat(8)3.27%
EPS beat(12)6
Avg EPS beat(12)0.1%
EPS beat(16)8
Avg EPS beat(16)0.4%
Revenue beat(2)0
Avg Revenue beat(2)-2.17%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-1.88%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-2.36%
Revenue beat(12)0
Avg Revenue beat(12)-2.33%
Revenue beat(16)3
Avg Revenue beat(16)-0.91%
PT rev (1m)4.44%
PT rev (3m)4.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.29 | ||
| Fwd PE | 12.19 | ||
| P/S | 0.76 | ||
| P/FCF | 25.07 | ||
| P/OCF | 9.74 | ||
| P/B | 2.51 | ||
| P/tB | 3.29 | ||
| EV/EBITDA | 8.03 |
EPS(TTM)16.92
EY6.14%
EPS(NY)22.6
Fwd EY8.2%
FCF(TTM)10.99
FCFY3.99%
OCF(TTM)28.29
OCFY10.27%
SpS362.85
BVpS109.86
TBVpS83.75
PEG (NY)1.64
PEG (5Y)5.86
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 | 2.61 |
F-Score6
WACC8.24%
ROIC/WACC0.74
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 5Y12.37%
Revenue 1Y (TTM)-0.63%
Revenue growth 3Y1.46%
Revenue growth 5Y4.7%
Sales Q2Q%-0.89%
Revenue Next Year0.04%
Revenue Next 2Y2.05%
Revenue Next 3Y2.96%
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%