FEDEX CORP (FDX) Stock Fundamental Analysis
USA - NYSE:FDX - US31428X1063 - Common Stock
237.8 USD
+0.89 (+0.38%)
237.8 USD
0 (0%)
FDX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on FDX. Finally FDX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FDX had positive earnings in the past year.
FDX had a positive operating cash flow in the past year.
Each year in the past 5 years FDX has been profitable.
Each year in the past 5 years FDX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FDX (4.66%) is better than 78.26% of its industry peers.
FDX's Return On Equity of 14.82% is amongst the best of the industry. FDX outperforms 82.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.32%, FDX is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FDX is significantly below the industry average of 11.80%.
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
FDX has a Profit Margin of 4.65%. This is amongst the best in the industry. FDX outperforms 82.61% of its industry peers.
FDX's Profit Margin has improved in the last couple of years.
FDX's Operating Margin of 6.96% is amongst the best of the industry. FDX outperforms 82.61% of its industry peers.
In the last couple of years the Operating Margin of FDX has grown nicely.
Looking at the Gross Margin, with a value of 71.16%, FDX belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
FDX's Gross Margin has been stable in the last couple of years.
| 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
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
FDX has less shares outstanding than it did 5 years ago.
FDX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.50 indicates that FDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FDX has a Altman-Z score (2.50) which is in line with its industry peers.
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.
With a decent Debt to FCF ratio value of 5.79, FDX is doing good in the industry, outperforming 73.91% of the companies in the same industry.
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 of 0.73. This is in the lower half of the industry: FDX underperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.88
WACC7.15%
2.3 Liquidity
FDX has a Current Ratio of 1.25. This is a normal value and indicates that FDX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FDX (1.25) is worse than 69.57% of its industry peers.
A Quick Ratio of 1.21 indicates that FDX should not have too much problems paying its short term obligations.
FDX's Quick ratio of 1.21 is on the low side compared to the rest of the industry. FDX is outperformed by 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
FDX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.49%, which is quite good.
The Earnings Per Share has been growing by 13.92% on average over the past years. This is quite good.
Looking at the last year, FDX shows a small growth in Revenue. The Revenue has grown by 1.14% in the last 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)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
Based on estimates for the next years, FDX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.39% on average per year.
The Revenue is expected to grow by 4.18% on average over the next years.
EPS Next Y1.04%
EPS Next 2Y7.65%
EPS Next 3Y8.49%
EPS Next 5Y10.39%
Revenue Next Year4.57%
Revenue Next 2Y4.33%
Revenue Next 3Y4.05%
Revenue Next 5Y4.18%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.88 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.
When comparing the Price/Earnings ratio of FDX to the average of the S&P500 Index (27.40), we can say FDX is valued rather cheaply.
The Price/Forward Earnings ratio is 11.26, which indicates a very decent 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.
When comparing the Price/Forward Earnings ratio of FDX to the average of the S&P500 Index (22.94), we can say FDX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
FDX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FDX is cheaper than 86.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FDX is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.36 | ||
| EV/EBITDA | 6.81 |
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 excellent profitability rating of FDX may justify a higher PE ratio.
PEG (NY)12.42
PEG (5Y)0.93
EPS Next 2Y7.65%
EPS Next 3Y8.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.45%, FDX has a reasonable but not impressive dividend return.
FDX's Dividend Yield is rather good when compared to the industry average which is at 3.76. FDX pays more dividend than 86.96% of the companies in the same industry.
FDX's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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 their dividend for at least 10 years, which is a reliable track record.
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 2Y7.65%
EPS Next 3Y8.49%
237.8
+0.89 (+0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners79.73%
Inst Owner Change-0.14%
Ins Owners0.24%
Ins Owner Change0.58%
Market Cap56.11B
Analysts74.29
Price Target271.77 (14.29%)
Short Float %2.01%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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)1.69%
PT rev (3m)0.8%
EPS NQ rev (1m)-1.66%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)2.59%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)2.6%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 11.26 | ||
| P/S | 0.63 | ||
| P/FCF | 15.36 | ||
| P/OCF | 7.42 | ||
| P/B | 2.02 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 6.81 |
EPS(TTM)18.46
EY7.76%
EPS(NY)21.13
Fwd EY8.88%
FCF(TTM)15.49
FCFY6.51%
OCF(TTM)32.06
OCFY13.48%
SpS375.45
BVpS117.69
TBVpS89.42
PEG (NY)12.42
PEG (5Y)0.93
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%
ROICexcg growth 3Y-3.37%
ROICexcg 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 | 2.5 |
F-Score5
WACC7.15%
ROIC/WACC0.88
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 Y1.04%
EPS Next 2Y7.65%
EPS Next 3Y8.49%
EPS Next 5Y10.39%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y-2.03%
Revenue growth 5Y4.9%
Sales Q2Q%3.08%
Revenue Next Year4.57%
Revenue Next 2Y4.33%
Revenue Next 3Y4.05%
Revenue Next 5Y4.18%
EBIT growth 1Y5.27%
EBIT growth 3Y-2.31%
EBIT growth 5Y16.35%
EBIT Next Year73.01%
EBIT Next 3Y25.77%
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%