FEDEX CORP (FDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FDX - US31428X1063 - Common Stock
274.29 USD
+0.24 (+0.09%)
274.31 USD
+0.02 (+0.01%)
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. 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
FDX had positive earnings in the past year.
FDX had a positive operating cash flow in the past year.
In the past 5 years FDX has always been profitable.
Each year in the past 5 years FDX had a positive operating cash flow.
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.
With an excellent Return On Equity value of 14.82%, FDX belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
FDX has a better Return On Invested Capital (6.32%) than 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 12.34%.
The 3 year average ROIC (6.03%) for FDX is below the current ROIC(6.32%), indicating increased profibility in the last year.
| 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's Profit Margin of 4.65% 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 6.96%. This is amongst the best in 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.
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.
FDX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FDX has less shares outstanding
FDX has a worse debt/assets ratio than last year.
2.2 Solvency
FDX has an Altman-Z score of 2.58. 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.
The Altman-Z score of FDX (2.58) 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.
Looking at the Debt to FCF ratio, with a value of 5.79, FDX is in the better half of 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.
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 | 2.58 |
ROIC/WACC0.86
WACC7.39%
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.
With a Current ratio value of 1.25, 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 1.21. This is a normal value and indicates that FDX is financially healthy and should not expect problems in meeting its short term obligations.
FDX'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.
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.
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
The Earnings Per Share is expected to grow by 10.39% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.18% on average over the next years.
EPS Next Y0.21%
EPS Next 2Y7.46%
EPS Next 3Y8.91%
EPS Next 5Y10.39%
Revenue Next Year4.72%
Revenue Next 2Y4.33%
Revenue Next 3Y4.22%
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
FDX is valuated correctly with a Price/Earnings ratio of 14.86.
Based on the Price/Earnings ratio, FDX is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
FDX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.49.
With a Price/Forward Earnings ratio of 13.03, FDX is valued correctly.
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 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 13.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FDX is valued cheaper than 82.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FDX is valued cheaper than 91.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.71 | ||
| EV/EBITDA | 7.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of FDX may justify a higher PE ratio.
PEG (NY)70
PEG (5Y)1.07
EPS Next 2Y7.46%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.12%. 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 3.45. 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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
32.68% of the earnings are spent on dividend by FDX. This is a low number and 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 2Y7.46%
EPS Next 3Y8.91%
274.29
+0.24 (+0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners80.03%
Inst Owner Change-2.28%
Ins Owners0.26%
Ins Owner Change0.58%
Market Cap64.72B
Revenue(TTM)88.59B
Net Income(TTM)4.12B
Analysts75.88
Price Target281.03 (2.46%)
Short Float %2.23%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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)3.13%
PT rev (3m)4.33%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)-2.18%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)2.44%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 13.03 | ||
| P/S | 0.73 | ||
| P/FCF | 17.71 | ||
| P/OCF | 8.56 | ||
| P/B | 2.33 | ||
| P/tB | 3.07 | ||
| EV/EBITDA | 7.63 |
EPS(TTM)18.46
EY6.73%
EPS(NY)21.05
Fwd EY7.67%
FCF(TTM)15.49
FCFY5.65%
OCF(TTM)32.06
OCFY11.69%
SpS375.45
BVpS117.69
TBVpS89.42
PEG (NY)70
PEG (5Y)1.07
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 | 2.58 |
F-Score5
WACC7.39%
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 Y0.21%
EPS Next 2Y7.46%
EPS Next 3Y8.91%
EPS Next 5Y10.39%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y-2.03%
Revenue growth 5Y4.9%
Sales Q2Q%3.08%
Revenue Next Year4.72%
Revenue Next 2Y4.33%
Revenue Next 3Y4.22%
Revenue Next 5Y4.18%
EBIT growth 1Y5.27%
EBIT growth 3Y-2.31%
EBIT growth 5Y16.35%
EBIT Next Year73.24%
EBIT Next 3Y25.93%
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 0.21% 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%.