FEDEX CORP (FDX) Stock Fundamental Analysis
USA - NYSE:FDX - US31428X1063 - Common Stock
262.09 USD
+3.23 (+1.25%)
241.13 USD
-20.96 (-8%)
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. FDX scores excellent on profitability, but there are some minor concerns on its financial health. FDX has a correct valuation and a medium growth rate. 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.
In the past 5 years FDX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.66%, FDX is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.82%, FDX belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.32%, FDX is doing good in the industry, outperforming 73.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FDX is significantly below the industry average of 11.58%.
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
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.
With an excellent Gross Margin value of 71.16%, FDX belongs to the best 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
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
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.
Looking at the Altman-Z score, with a value of 2.55, FDX is in line with its industry, outperforming 56.52% of the companies in the same 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.
With a decent Debt to FCF ratio value of 5.79, FDX is doing good in the industry, outperforming 69.57% 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 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.86
WACC7.32%
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.
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.
Looking at the Quick ratio, with a value of 1.21, FDX is doing worse than 69.57% of the companies in the same industry.
| 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
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 Y0.04%
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
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 14.20.
78.26% of the companies in the same industry are more expensive than FDX, based on the Price/Earnings ratio.
FDX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.06.
A Price/Forward Earnings ratio of 12.46 indicates a correct valuation of FDX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FDX indicates a rather cheap valuation: FDX is cheaper than 91.30% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FDX to the average of the S&P500 Index (32.73), we can say FDX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.2 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FDX indicates a somewhat cheap valuation: FDX is cheaper than 78.26% of the companies listed in the same industry.
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 | 16.92 | ||
| EV/EBITDA | 7.36 |
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)323.36
PEG (5Y)1.02
EPS Next 2Y7.44%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.24%.
FDX's Dividend Yield is rather good when compared to the industry average which is at 3.59. 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
On average, the dividend of FDX grows each year by 16.41%, which is quite nice.
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 2Y7.44%
EPS Next 3Y8.71%
262.09
+3.23 (+1.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners79.73%
Inst Owner Change-1.83%
Ins Owners0.24%
Ins Owner Change0.58%
Market Cap61.84B
Revenue(TTM)88.59B
Net Income(TTM)4.12B
Analysts74.86
Price Target272.51 (3.98%)
Short Float %2%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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 | 14.2 | ||
| Fwd PE | 12.46 | ||
| P/S | 0.7 | ||
| P/FCF | 16.92 | ||
| P/OCF | 8.17 | ||
| P/B | 2.23 | ||
| P/tB | 2.93 | ||
| EV/EBITDA | 7.36 |
EPS(TTM)18.46
EY7.04%
EPS(NY)21.04
Fwd EY8.03%
FCF(TTM)15.49
FCFY5.91%
OCF(TTM)32.06
OCFY12.23%
SpS375.45
BVpS117.69
TBVpS89.42
PEG (NY)323.36
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
WACC7.32%
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%.