FEDEX CORP (FDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FDX - US31428X1063 - Common Stock
312.36 USD
+3.35 (+1.08%)
312.36 USD
0 (0%)
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. While FDX belongs to the best of the industry regarding profitability, 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.
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.
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
Looking at the Return On Assets, with a value of 4.86%, FDX is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
FDX has a better Return On Equity (15.39%) than 82.61% of its industry peers.
FDX has a better Return On Invested Capital (6.56%) than 73.91% of its industry peers.
FDX had an Average Return On Invested Capital over the past 3 years of 6.03%. This 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
FDX's Profit Margin of 4.81% is amongst the best of the industry. FDX outperforms 82.61% of its industry peers.
FDX's Profit Margin has improved in the last couple of years.
FDX has a Operating Margin of 7.11%. This is amongst the best in the industry. FDX outperforms 86.96% of its industry peers.
In the last couple of years the Operating Margin of FDX has grown nicely.
FDX's Gross Margin of 71.27% is amongst the best of the industry. FDX outperforms 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
Compared to 5 years ago, FDX has less shares outstanding
Compared to 1 year ago, FDX has a worse debt to assets ratio.
2.2 Solvency
FDX has an Altman-Z score of 2.69. 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.
With a Altman-Z score value of 2.69, FDX perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
FDX has a debt to FCF ratio of 4.87. This is a neutral value as FDX would need 4.87 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.87, FDX is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
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 | 2.69 |
ROIC/WACC0.87
WACC7.55%
2.3 Liquidity
A Current Ratio of 1.27 indicates that FDX should not have too much problems paying its short term obligations.
FDX has a worse Current ratio (1.27) than 73.91% of its industry peers.
A Quick Ratio of 1.23 indicates that FDX should not have too much problems paying its short term obligations.
FDX has a Quick ratio of 1.23. This is in the lower half of the industry: FDX underperforms 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.
The Revenue has been growing slightly by 3.09% in the past year.
FDX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.90% yearly.
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
FDX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.48% yearly.
The Revenue is expected to grow by 4.28% on average over the next years.
EPS Next Y2.12%
EPS Next 2Y8.42%
EPS Next 3Y9.27%
EPS Next 5Y11.48%
Revenue Next Year5.57%
Revenue Next 2Y4.88%
Revenue Next 3Y4.57%
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
A Price/Earnings ratio of 16.24 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 78.26% of the companies listed in the same industry.
FDX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.58 indicates a correct valuation of FDX.
Based on the Price/Forward Earnings ratio, FDX is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
FDX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.24 | ||
| Fwd PE | 14.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FDX indicates a rather cheap valuation: FDX is cheaper than 82.61% of the companies listed in the same industry.
FDX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FDX is cheaper than 91.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.95 | ||
| EV/EBITDA | 8.27 |
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)7.65
PEG (5Y)1.17
EPS Next 2Y8.42%
EPS Next 3Y9.27%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 1.88%.
Compared to an average industry Dividend Yield of 1.14, FDX pays a better dividend. On top of this FDX pays more dividend than 86.96% of the companies listed in the same industry.
FDX's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
The dividend of FDX is nicely growing with an annual growth rate of 16.41%!
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)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.
The dividend of FDX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.16%
EPS Next 2Y8.42%
EPS Next 3Y9.27%
312.36
+3.35 (+1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners80.48%
Inst Owner Change-0.02%
Ins Owners0.26%
Ins Owner Change0.17%
Market Cap73.70B
Revenue(TTM)90.09B
Net Income(TTM)4.33B
Analysts75.29
Price Target306.26 (-1.95%)
Short Float %1.81%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend5.55
Dividend Growth(5Y)16.41%
DP31.16%
Div Incr Years4
Div Non Decr Years22
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.88%
Min EPS beat(2)5.52%
Max EPS beat(2)16.25%
EPS beat(4)3
Avg EPS beat(4)5.91%
Min EPS beat(4)-1.52%
Max EPS beat(4)16.25%
EPS beat(8)6
Avg EPS beat(8)1.56%
EPS beat(12)8
Avg EPS beat(12)4.27%
EPS beat(16)9
Avg EPS beat(16)1.64%
Revenue beat(2)2
Avg Revenue beat(2)1.82%
Min Revenue beat(2)1.69%
Max Revenue beat(2)1.95%
Revenue beat(4)4
Avg Revenue beat(4)1.22%
Min Revenue beat(4)0.3%
Max Revenue beat(4)1.95%
Revenue beat(8)4
Avg Revenue beat(8)-0.32%
Revenue beat(12)4
Avg Revenue beat(12)-1.16%
Revenue beat(16)4
Avg Revenue beat(16)-1.44%
PT rev (1m)8.98%
PT rev (3m)12.69%
EPS NQ rev (1m)-5.17%
EPS NQ rev (3m)-4.38%
EPS NY rev (1m)1.91%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.24 | ||
| Fwd PE | 14.58 | ||
| P/S | 0.82 | ||
| P/FCF | 16.95 | ||
| P/OCF | 8.99 | ||
| P/B | 2.62 | ||
| P/tB | 3.43 | ||
| EV/EBITDA | 8.27 |
EPS(TTM)19.23
EY6.16%
EPS(NY)21.43
Fwd EY6.86%
FCF(TTM)18.43
FCFY5.9%
OCF(TTM)34.74
OCFY11.12%
SpS381.81
BVpS119.26
TBVpS91.18
PEG (NY)7.65
PEG (5Y)1.17
Graham Number227.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 15.39% | ||
| ROCE | 8.78% | ||
| ROIC | 6.56% | ||
| ROICexc | 7.2% | ||
| ROICexgc | 8% | ||
| OM | 7.11% | ||
| PM (TTM) | 4.81% | ||
| GM | 71.27% | ||
| FCFM | 4.83% |
ROA(3y)4.73%
ROA(5y)4.99%
ROE(3y)15.15%
ROE(5y)16.47%
ROIC(3y)6.03%
ROIC(5y)6.27%
ROICexc(3y)6.59%
ROICexc(5y)6.9%
ROICexgc(3y)7.32%
ROICexgc(5y)7.71%
ROCE(3y)8.07%
ROCE(5y)8.39%
ROICexgc growth 3Y-3.37%
ROICexgc growth 5Y12.94%
ROICexc growth 3Y-3.24%
ROICexc growth 5Y13.26%
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%
F-Score7
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.87 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 89.89% | ||
| Cap/Sales | 4.27% | ||
| Interest Coverage | 7.48 | ||
| Cash Conversion | 76.72% | ||
| Profit Quality | 100.37% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 2.69 |
F-Score7
WACC7.55%
ROIC/WACC0.87
Cap/Depr(3y)121.23%
Cap/Depr(5y)137.83%
Cap/Sales(3y)5.79%
Cap/Sales(5y)6.32%
Profit Quality(3y)70.96%
Profit Quality(5y)74.93%
High Growth Momentum
Growth
EPS 1Y (TTM)13.65%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%19.01%
EPS Next Y2.12%
EPS Next 2Y8.42%
EPS Next 3Y9.27%
EPS Next 5Y11.48%
Revenue 1Y (TTM)3.09%
Revenue growth 3Y-2.03%
Revenue growth 5Y4.9%
Sales Q2Q%6.84%
Revenue Next Year5.57%
Revenue Next 2Y4.88%
Revenue Next 3Y4.57%
Revenue Next 5Y4.28%
EBIT growth 1Y10.09%
EBIT growth 3Y-2.31%
EBIT growth 5Y16.35%
EBIT Next Year74.69%
EBIT Next 3Y26.03%
EBIT Next 5Y16.61%
FCF growth 1Y6.05%
FCF growth 3Y-0.97%
FCF growth 5YN/A
OCF growth 1Y-15.72%
OCF growth 3Y-10.55%
OCF growth 5Y6.66%
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%.