FEDEX CORP (FDX) Stock Fundamental Analysis
NYSE:FDX - New York Stock Exchange, Inc. - US31428X1063 - Common Stock - Currency: USD
Overall FDX gets a fundamental rating of 6 out of 10. We evaluated FDX against 23 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 decent growth rate and is not valued too expensively. 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.
Each year in the past 5 years FDX has been profitable.
FDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.54%, FDX is doing good in the industry, outperforming 73.68% of the companies in the same industry.
FDX has a Return On Equity of 14.67%. This is in the better half of the industry: FDX outperforms 78.95% of its industry peers.
The Return On Invested Capital of FDX (6.07%) is better than 68.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FDX is significantly below the industry average of 11.36%.
| 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.
With a decent Operating Margin value of 6.65%, FDX is doing good in the industry, outperforming 78.95% of the companies in the same industry.
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 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
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.
Compared to 1 year ago, FDX has an improved debt to assets ratio.
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.
With a Altman-Z score value of 2.59, FDX perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
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 has a Debt to FCF ratio of 7.57. This is in the better half of the industry: FDX outperforms 63.16% 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 in line compared to the rest of the industry. FDX outperforms 47.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.57 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.81
WACC7.53%
2.3 Liquidity
A Current Ratio of 1.23 indicates that FDX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.23, FDX perfoms like the industry average, 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 (1.19) which is comparable to the rest of the 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%.
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 decreased by -0.63% 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)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
FDX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.37% yearly.
Based on estimates for the next years, FDX will show a small growth in Revenue. The Revenue will grow by 3.61% on average per year.
EPS Next Y7.84%
EPS Next 2Y12.25%
EPS Next 3Y12.03%
EPS Next 5Y12.37%
Revenue Next Year0.06%
Revenue Next 2Y1.94%
Revenue Next 3Y2.67%
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 15.02 indicates a correct valuation of FDX.
Compared to the rest of the industry, the Price/Earnings ratio of FDX indicates a somewhat cheap valuation: FDX is cheaper than 68.42% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. FDX is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.33, the valuation of FDX can be described as reasonable.
89.47% of the companies in the same industry are more expensive than FDX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FDX to the average of the S&P500 Index (22.68), we can say FDX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 11.33 |
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.
Based on the Price/Free Cash Flow ratio, FDX is valued a bit cheaper than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.13 | ||
| EV/EBITDA | 7.86 |
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.
FDX's earnings are expected to grow with 12.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.92
PEG (5Y)5.41
EPS Next 2Y12.25%
EPS Next 3Y12.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, FDX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.82, FDX pays a better dividend. On top of this FDX pays more dividend than 84.21% of the companies listed in the same industry.
FDX's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
On average, the dividend of FDX grows each year by 14.41%, which is quite nice.
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 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 2Y12.25%
EPS Next 3Y12.03%
254.19
-14.27 (-5.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners80.32%
Inst Owner Change-3.67%
Ins Owners8.21%
Ins Owner Change-0.08%
Market Cap61.22B
Analysts76.57
Price Target330.29 (29.94%)
Short Float %1.49%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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)-11.07%
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)0.33%
PT rev (3m)5.59%
EPS NQ rev (1m)-5.5%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)-1.9%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-2.74%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 11.33 | ||
| P/S | 0.7 | ||
| P/FCF | 23.13 | ||
| P/OCF | 8.99 | ||
| P/B | 2.31 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | 7.86 |
EPS(TTM)16.92
EY6.66%
EPS(NY)22.44
Fwd EY8.83%
FCF(TTM)10.99
FCFY4.32%
OCF(TTM)28.29
OCFY11.13%
SpS362.85
BVpS109.86
TBVpS83.75
PEG (NY)1.92
PEG (5Y)5.41
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 | 2.59 |
F-Score6
WACC7.53%
ROIC/WACC0.81
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 Y7.84%
EPS Next 2Y12.25%
EPS Next 3Y12.03%
EPS Next 5Y12.37%
Revenue 1Y (TTM)-0.63%
Revenue growth 3Y1.46%
Revenue growth 5Y4.7%
Sales Q2Q%-0.89%
Revenue Next Year0.06%
Revenue Next 2Y1.94%
Revenue Next 3Y2.67%
Revenue Next 5Y3.61%
EBIT growth 1Y-2.14%
EBIT growth 3Y1.47%
EBIT growth 5Y5.45%
EBIT Next Year72.75%
EBIT Next 3Y27.1%
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%