FEDEX CORP (FDX) Stock Fundamental Analysis
USA - NYSE:FDX - US31428X1063 - Common Stock
263.1 USD
+0.53 (+0.2%)
263.1 USD
0 (0%)
Overall FDX gets a fundamental rating of 6 out of 10. We evaluated FDX against 23 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.
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.
In the past 5 years FDX always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.66%, FDX is doing good in the industry, outperforming 78.26% of the companies in the same industry.
The Return On Equity of FDX (14.82%) is better than 82.61% of its industry peers.
FDX's Return On Invested Capital of 6.32% 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 11.55%.
The last Return On Invested Capital (6.32%) for FDX is above the 3 year average (6.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 14.82% | ||
| ROIC | 6.32% |
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
The Profit Margin of FDX (4.65%) is better than 82.61% of its industry peers.
FDX's Profit Margin has improved in the last couple of years.
The Operating Margin of FDX (6.96%) is better than 82.61% of its industry peers.
FDX's Operating Margin has improved in the last couple of years.
FDX's Gross Margin of 71.16% 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 | 6.96% | ||
| PM (TTM) | 4.65% | ||
| GM | 71.16% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FDX is destroying value.
Compared to 1 year ago, FDX has less shares outstanding
Compared to 5 years ago, FDX has less shares outstanding
The debt/assets ratio for FDX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.55 indicates that FDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of FDX (2.55) is comparable to the rest of the industry.
The Debt to FCF ratio of FDX is 5.79, which is a neutral value as it means it would take FDX, 5.79 years of fcf income to pay off all of its debts.
FDX has a Debt to FCF ratio of 5.79. This is in the better half of the industry: FDX outperforms 69.57% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that FDX is somewhat dependend on debt financing.
The Debt to Equity ratio of FDX (0.73) is worse than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.86
WACC7.34%
2.3 Liquidity
A Current Ratio of 1.25 indicates that FDX should not have too much problems paying its short term obligations.
The Current ratio of FDX (1.25) is worse than 69.57% of its industry peers.
FDX has a Quick Ratio of 1.21. 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 (1.21) than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.49% over the past year.
Measured over the past years, FDX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.92% on average per year.
Looking at the last year, FDX shows a small growth in Revenue. The Revenue has grown by 1.14% in the last year.
The Revenue has been growing slightly by 4.90% on average over the past years.
EPS 1Y (TTM)9.49%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%6.39%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y-2.03%
Revenue growth 5Y4.9%
Sales Q2Q%3.08%
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 10.39% yearly.
FDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.18% yearly.
EPS Next Y0.04%
EPS Next 2Y7.44%
EPS Next 3Y8.71%
EPS Next 5Y10.39%
Revenue Next Year4.58%
Revenue Next 2Y4.31%
Revenue Next 3Y4.1%
Revenue Next 5Y4.18%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.25, which indicates a correct valuation of FDX.
Based on the Price/Earnings ratio, FDX is valued a bit 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 25.07.
A Price/Forward Earnings ratio of 12.50 indicates a correct valuation of FDX.
FDX's Price/Forward Earnings ratio is rather cheap when compared to the industry. FDX is cheaper than 91.30% of the companies in the same industry.
FDX is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
78.26% of the companies in the same industry are more expensive than FDX, based on the Enterprise Value to EBITDA ratio.
86.96% 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 | 16.99 | ||
| EV/EBITDA | 7.37 |
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.
FDX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)324.6
PEG (5Y)1.02
EPS Next 2Y7.44%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.17%. Purely for dividend investing, there may be better candidates out there.
FDX's Dividend Yield is rather good when compared to the industry average which is at 3.55. FDX pays more dividend than 86.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, FDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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 32.68% 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.
DP32.68%
EPS Next 2Y7.44%
EPS Next 3Y8.71%
263.1
+0.53 (+0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners79.73%
Inst Owner Change-2.26%
Ins Owners0.24%
Ins Owner Change0.61%
Market Cap62.08B
Revenue(TTM)88.59B
Net Income(TTM)4.12B
Analysts74.86
Price Target272.51 (3.58%)
Short Float %1.92%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend5.55
Dividend Growth(5Y)16.41%
DP32.68%
Div Incr Years4
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.45%
Min EPS beat(2)3.38%
Max EPS beat(2)5.52%
EPS beat(4)3
Avg EPS beat(4)2.57%
Min EPS beat(4)-1.52%
Max EPS beat(4)5.52%
EPS beat(8)5
Avg EPS beat(8)-1.17%
EPS beat(12)8
Avg EPS beat(12)3.89%
EPS beat(16)9
Avg EPS beat(16)1.35%
Revenue beat(2)2
Avg Revenue beat(2)1.32%
Min Revenue beat(2)0.95%
Max Revenue beat(2)1.69%
Revenue beat(4)3
Avg Revenue beat(4)0.32%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)1.69%
Revenue beat(8)3
Avg Revenue beat(8)-0.82%
Revenue beat(12)3
Avg Revenue beat(12)-1.72%
Revenue beat(16)4
Avg Revenue beat(16)-1.34%
PT rev (1m)0.27%
PT rev (3m)1.07%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-3.33%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-2.73%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 12.5 | ||
| P/S | 0.7 | ||
| P/FCF | 16.99 | ||
| P/OCF | 8.21 | ||
| P/B | 2.24 | ||
| P/tB | 2.94 | ||
| EV/EBITDA | 7.37 |
EPS(TTM)18.46
EY7.02%
EPS(NY)21.04
Fwd EY8%
FCF(TTM)15.49
FCFY5.89%
OCF(TTM)32.06
OCFY12.19%
SpS375.45
BVpS117.69
TBVpS89.42
PEG (NY)324.6
PEG (5Y)1.02
Graham Number221.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 14.82% | ||
| ROCE | 8.46% | ||
| ROIC | 6.32% | ||
| ROICexc | 6.91% | ||
| ROICexgc | 7.67% | ||
| OM | 6.96% | ||
| PM (TTM) | 4.65% | ||
| GM | 71.16% | ||
| FCFM | 4.12% |
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-Score5
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.79 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 91.42% | ||
| Cap/Sales | 4.41% | ||
| Interest Coverage | 7.25 | ||
| Cash Conversion | 72.42% | ||
| Profit Quality | 88.78% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.55 |
F-Score5
WACC7.34%
ROIC/WACC0.86
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)9.49%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%6.39%
EPS Next Y0.04%
EPS Next 2Y7.44%
EPS Next 3Y8.71%
EPS Next 5Y10.39%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y-2.03%
Revenue growth 5Y4.9%
Sales Q2Q%3.08%
Revenue Next Year4.58%
Revenue Next 2Y4.31%
Revenue Next 3Y4.1%
Revenue Next 5Y4.18%
EBIT growth 1Y5.27%
EBIT growth 3Y-2.31%
EBIT growth 5Y16.35%
EBIT Next Year73.01%
EBIT Next 3Y25.8%
EBIT Next 5Y16.83%
FCF growth 1Y11.03%
FCF growth 3Y-0.97%
FCF growth 5YN/A
OCF growth 1Y-20.12%
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.
Can you provide the valuation status for FEDEX CORP?
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.
What is the expected EPS growth for FEDEX CORP (FDX) stock?
The Earnings per Share (EPS) of FEDEX CORP (FDX) is expected to grow by 0.04% in the next year.
Can you provide the dividend sustainability for FDX stock?
The dividend rating of FEDEX CORP (FDX) is 7 / 10 and the dividend payout ratio is 32.68%.