FEDEX CORP (FDX) Stock Fundamental Analysis
NYSE:FDX - New York Stock Exchange, Inc. - US31428X1063 - Common Stock - Currency: USD
Overall FDX gets a fundamental rating of 5 out of 10. We evaluated FDX against 22 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 bad growth rate and is valued cheaply. Finally FDX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FDX was profitable.
FDX had a positive operating cash flow in the past year.
Of the past 5 years FDX 4 years were profitable.
FDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FDX's Return On Assets of 4.60% is fine compared to the rest of the industry. FDX outperforms 77.27% of its industry peers.
FDX's Return On Equity of 14.65% is fine compared to the rest of the industry. FDX outperforms 77.27% of its industry peers.
With a decent Return On Invested Capital value of 6.22%, FDX is doing good in the industry, outperforming 72.73% of the companies in the same industry.
FDX had an Average Return On Invested Capital over the past 3 years of 6.15%. This is significantly below the industry average of 12.73%.
The 3 year average ROIC (6.15%) for FDX is below the current ROIC(6.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 14.65% | ||
| ROIC | 6.22% |
ROA(3y)4.65%
ROA(5y)4.4%
ROE(3y)15.4%
ROE(5y)14.96%
ROIC(3y)6.15%
ROIC(5y)5.64%
1.3 Margins
FDX's Profit Margin of 4.45% is amongst the best of the industry. FDX outperforms 81.82% of its industry peers.
FDX's Profit Margin has improved in the last couple of years.
The Operating Margin of FDX (6.80%) is better than 81.82% of its industry peers.
FDX's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 70.84%, FDX belongs to the best of the industry, outperforming 95.45% 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 | 6.8% | ||
| PM (TTM) | 4.45% | ||
| GM | 70.84% |
OM growth 3Y0.01%
OM growth 5Y0.72%
PM growth 3Y-7.43%
PM growth 5Y44.85%
GM growth 3Y0.01%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FDX 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
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.
FDX has a Altman-Z score of 2.55. This is comparable to the rest of the industry: FDX outperforms 50.00% of its industry peers.
FDX has a debt to FCF ratio of 5.87. This is a neutral value as FDX would need 5.87 years to pay back of all of its debts.
FDX has a Debt to FCF ratio of 5.87. This is in the better half of the industry: FDX outperforms 68.18% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that 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 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.84
WACC7.38%
2.3 Liquidity
FDX has a Current Ratio of 1.24. 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 (1.24) is worse than 63.64% of its industry peers.
A Quick Ratio of 1.19 indicates that FDX should not have too much problems paying its short term obligations.
FDX has a Quick ratio (1.19) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
FDX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.36%.
FDX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.92% yearly.
EPS 1Y (TTM)2.36%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%12.2%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.5%
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 14.47% yearly.
Based on estimates for the next years, FDX will show a small growth in Revenue. The Revenue will grow by 3.58% on average per year.
EPS Next Y9.75%
EPS Next 2Y12.03%
EPS Next 3Y12.09%
EPS Next 5Y14.47%
Revenue Next Year2.48%
Revenue Next 2Y3.17%
Revenue Next 3Y3.2%
Revenue Next 5Y3.58%
3.3 Evolution
The EPS 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
The Price/Earnings ratio is 13.09, which indicates a correct valuation of FDX.
Based on the Price/Earnings ratio, FDX is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
FDX is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
FDX is valuated reasonably with a Price/Forward Earnings ratio of 11.93.
Based on the Price/Forward Earnings ratio, FDX is valued cheaper than 90.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. FDX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 11.93 |
4.2 Price Multiples
FDX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FDX is cheaper than 77.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FDX is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.67 | ||
| EV/EBITDA | 7.02 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FDX may justify a higher PE ratio.
A more expensive valuation may be justified as FDX's earnings are expected to grow with 12.09% in the coming years.
PEG (NY)1.34
PEG (5Y)0.94
EPS Next 2Y12.03%
EPS Next 3Y12.09%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.40%. 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 3.86. FDX pays more dividend than 81.82% of the companies in the same industry.
FDX's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
On average, the dividend of FDX grows each year by 16.33%, which is quite nice.
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)16.33%
Div Incr Years4
Div Non Decr Years22
5.3 Sustainability
FDX pays out 33.69% 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.
DP33.69%
EPS Next 2Y12.03%
EPS Next 3Y12.09%
238.71
+3.62 (+1.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners77.86%
Inst Owner Change0.01%
Ins Owners8.26%
Ins Owner Change0.46%
Market Cap57.19B
Analysts76.11
Price Target278.35 (16.61%)
Short Float %1.77%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend5.53
Dividend Growth(5Y)16.33%
DP33.69%
Div Incr Years4
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.7%
Min EPS beat(2)-1.52%
Max EPS beat(2)2.91%
EPS beat(4)2
Avg EPS beat(4)-5.89%
Min EPS beat(4)-25.05%
Max EPS beat(4)2.91%
EPS beat(8)4
Avg EPS beat(8)0.31%
EPS beat(12)6
Avg EPS beat(12)0.27%
EPS beat(16)7
Avg EPS beat(16)0.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)0.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)0.3%
Revenue beat(8)1
Avg Revenue beat(8)-1.87%
Revenue beat(12)1
Avg Revenue beat(12)-2.28%
Revenue beat(16)3
Avg Revenue beat(16)-1.31%
PT rev (1m)-1.85%
PT rev (3m)-5.66%
EPS NQ rev (1m)-1.93%
EPS NQ rev (3m)-4.76%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)-1.4%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 11.93 | ||
| P/S | 0.65 | ||
| P/FCF | 16.67 | ||
| P/OCF | 7.93 | ||
| P/B | 2.14 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | 7.02 |
EPS(TTM)18.23
EY7.64%
EPS(NY)20.01
Fwd EY8.38%
FCF(TTM)14.32
FCFY6%
OCF(TTM)30.11
OCFY12.61%
SpS366.51
BVpS111.47
TBVpS85.04
PEG (NY)1.34
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 14.65% | ||
| ROCE | 8.39% | ||
| ROIC | 6.22% | ||
| ROICexc | 6.7% | ||
| ROICexgc | 7.41% | ||
| OM | 6.8% | ||
| PM (TTM) | 4.45% | ||
| GM | 70.84% | ||
| FCFM | 3.91% |
ROA(3y)4.65%
ROA(5y)4.4%
ROE(3y)15.4%
ROE(5y)14.96%
ROIC(3y)6.15%
ROIC(5y)5.64%
ROICexc(3y)6.77%
ROICexc(5y)6.22%
ROICexgc(3y)7.54%
ROICexgc(5y)6.96%
ROCE(3y)8.29%
ROCE(5y)7.61%
ROICexcg growth 3Y-1.89%
ROICexcg growth 5Y-5.08%
ROICexc growth 3Y-1.17%
ROICexc growth 5Y-3.51%
OM growth 3Y0.01%
OM growth 5Y0.72%
PM growth 3Y-7.43%
PM growth 5Y44.85%
GM growth 3Y0.01%
GM growth 5Y0.07%
F-Score6
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.87 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 87.78% | ||
| Cap/Sales | 4.31% | ||
| Interest Coverage | 7.57 | ||
| Cash Conversion | 70.19% | ||
| Profit Quality | 87.7% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 2.55 |
F-Score6
WACC7.38%
ROIC/WACC0.84
Cap/Depr(3y)146.31%
Cap/Depr(5y)151.28%
Cap/Sales(3y)6.66%
Cap/Sales(5y)7.09%
Profit Quality(3y)73.43%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.36%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%12.2%
EPS Next Y9.75%
EPS Next 2Y12.03%
EPS Next 3Y12.09%
EPS Next 5Y14.47%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.5%
Revenue Next Year2.48%
Revenue Next 2Y3.17%
Revenue Next 3Y3.2%
Revenue Next 5Y3.58%
EBIT growth 1Y-2.72%
EBIT growth 3Y1.47%
EBIT growth 5Y5.45%
EBIT Next Year67.17%
EBIT Next 3Y24.98%
EBIT Next 5Y16.62%
FCF growth 1Y63.46%
FCF growth 3Y-9.64%
FCF growth 5Y91.11%
OCF growth 1Y-18.96%
OCF growth 3Y-6.4%
OCF growth 5Y8.17%