FEDEX CORP (FDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FDX - US31428X1063 - Common Stock
304.21 USD
-5.6 (-1.81%)
303.4 USD
-0.81 (-0.27%)
We assign a fundamental rating of 6 out of 10 to FDX. FDX was compared to 23 industry peers in the Air Freight & Logistics industry. FDX scores excellent on profitability, but there are some minor concerns on its financial health. FDX is not valued too expensively and it also shows a decent growth rate. Finally FDX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year FDX was profitable.
- In the past year FDX had a positive cash flow from operations.
- FDX had positive earnings in each of the past 5 years.
- Each year in the past 5 years FDX had a positive operating cash flow.
1.2 Ratios
- FDX's Return On Assets of 4.86% is fine compared to the rest of the industry. FDX outperforms 78.26% of its industry peers.
- Looking at the Return On Equity, with a value of 15.39%, FDX belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
- FDX's Return On Invested Capital of 6.56% is fine compared to the rest of the industry. FDX outperforms 73.91% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for FDX is significantly below the industry average of 12.36%.
- The 3 year average ROIC (6.03%) for FDX is below the current ROIC(6.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 15.39% | ||
| ROIC | 6.56% |
ROA(3y)4.73%
ROA(5y)4.99%
ROE(3y)15.15%
ROE(5y)16.47%
ROIC(3y)6.03%
ROIC(5y)6.27%
1.3 Margins
- Looking at the Profit Margin, with a value of 4.81%, FDX belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
- In the last couple of years the Profit Margin of FDX has grown nicely.
- With an excellent Operating Margin value of 7.11%, FDX belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- In the last couple of years the Operating Margin of FDX has grown nicely.
- The Gross Margin of FDX (71.27%) is better than 95.65% 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 | 7.11% | ||
| PM (TTM) | 4.81% | ||
| GM | 71.27% |
OM growth 3Y-0.28%
OM growth 5Y10.92%
PM growth 3Y4.41%
PM growth 5Y20.17%
GM growth 3Y1.06%
GM growth 5Y0.21%
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.
- Compared to 1 year ago, FDX has less shares outstanding
- The number of shares outstanding for FDX has been reduced compared to 5 years ago.
- Compared to 1 year ago, FDX has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.67 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 2.67. This is comparable to the rest of the industry: FDX outperforms 47.83% of its industry peers.
- The Debt to FCF ratio of FDX is 4.87, which is a neutral value as it means it would take FDX, 4.87 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of FDX (4.87) is better than 78.26% of its industry peers.
- FDX has a Debt/Equity ratio of 0.72. This is a neutral value indicating FDX is somewhat dependend on debt financing.
- FDX's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. FDX is outperformed by 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.87
WACC7.57%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that FDX should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.27, FDX is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
- FDX has a Quick 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.
- FDX has a worse Quick ratio (1.23) than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- FDX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.65%, which is quite good.
- The Earnings Per Share has been growing by 13.92% on average over the past years. This is quite good.
- FDX shows a small growth in Revenue. In the last year, the Revenue has grown by 3.09%.
- The Revenue has been growing slightly by 4.90% on average over the past years.
EPS 1Y (TTM)13.65%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%19.01%
Revenue 1Y (TTM)3.09%
Revenue growth 3Y-2.03%
Revenue growth 5Y4.9%
Sales Q2Q%6.84%
3.2 Future
- The Earnings Per Share is expected to grow by 11.48% on average over the next years. This is quite good.
- Based on estimates for the next years, FDX will show a small growth in Revenue. The Revenue will grow by 4.28% on average per year.
EPS Next Y2.73%
EPS Next 2Y8.31%
EPS Next 3Y8.99%
EPS Next 5Y11.48%
Revenue Next Year5.9%
Revenue Next 2Y5.11%
Revenue Next 3Y4.66%
Revenue Next 5Y4.28%
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.
- When comparing the Revenue 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
- Based on the Price/Earnings ratio of 15.82, 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 78.26% of the companies in the same industry.
- FDX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- FDX is valuated correctly with a Price/Forward Earnings ratio of 14.22.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FDX indicates a rather cheap valuation: FDX is cheaper than 91.30% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of FDX to the average of the S&P500 Index (25.98), we can say FDX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 14.22 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FDX is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
- 91.30% of the companies in the same industry are more expensive than FDX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.51 | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- FDX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.8
PEG (5Y)1.14
EPS Next 2Y8.31%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
- FDX has a Yearly Dividend Yield of 1.87%.
- FDX's Dividend Yield is rather good when compared to the industry average which is at 1.11. FDX pays more dividend than 86.96% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, FDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
- On average, the dividend of FDX grows each year by 16.41%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)16.41%
Div Incr Years4
Div Non Decr Years22
5.3 Sustainability
- FDX pays out 31.16% 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.
DP31.16%
EPS Next 2Y8.31%
EPS Next 3Y8.99%
FEDEX CORP / FDX FAQ
Can you provide the ChartMill fundamental rating for FEDEX CORP?
ChartMill assigns a fundamental rating of 6 / 10 to FDX.
What is the valuation status of FEDEX CORP (FDX) stock?
ChartMill assigns a valuation rating of 6 / 10 to FEDEX CORP (FDX). This can be considered as Fairly Valued.
What is the profitability of FDX stock?
FEDEX CORP (FDX) has a profitability rating of 8 / 10.
Can you provide the financial health for FDX stock?
The financial health rating of FEDEX CORP (FDX) is 4 / 10.
How sustainable is the dividend of FEDEX CORP (FDX) stock?
The dividend rating of FEDEX CORP (FDX) is 7 / 10 and the dividend payout ratio is 31.16%.