FEDEX CORP (FDX) Stock Fundamental Analysis
USA - NYSE:FDX - US31428X1063 - Common Stock
227.7 USD
+2.01 (+0.89%)
226.71 USD
-0.99 (-0.43%)
Overall FDX gets a fundamental rating of 6 out of 10. We evaluated FDX 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 valued quite cheap, while showing a decent growth score. This is a good combination! 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.
FDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FDX's Return On Assets of 4.66% is fine compared to the rest of the industry. FDX outperforms 78.26% of its industry peers.
FDX's Return On Equity of 14.55% is amongst the best of the industry. FDX outperforms 82.61% of its industry peers.
FDX has a better Return On Invested Capital (6.29%) than 73.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FDX is significantly below the industry average of 12.53%.
The last Return On Invested Capital (6.29%) 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 | 14.55% | ||
| ROIC | 6.29% |
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.
In the last couple of years the Profit Margin of FDX has grown nicely.
Looking at the Operating Margin, with a value of 6.92%, FDX belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
FDX's Operating Margin has improved in the last couple of years.
FDX has a better Gross Margin (70.95%) than 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 | 6.92% | ||
| PM (TTM) | 4.65% | ||
| GM | 70.95% |
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.
FDX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FDX has been reduced compared to 5 years ago.
The debt/assets ratio for FDX is higher compared to a year ago.
2.2 Solvency
FDX has an Altman-Z score of 2.47. 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.
FDX has a Altman-Z score (2.47) which is comparable to the rest of the industry.
FDX has a debt to FCF ratio of 6.90. This is a slightly negative value and a sign of low solvency as FDX would need 6.90 years to pay back of all of its debts.
FDX's Debt to FCF ratio of 6.90 is fine compared to the rest of the industry. FDX outperforms 73.91% of its industry peers.
FDX has a Debt/Equity ratio of 0.68. This is a neutral value indicating FDX is somewhat dependend on debt financing.
FDX's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. FDX is outperformed by 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.9 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.86
WACC7.33%
2.3 Liquidity
A Current Ratio of 1.19 indicates that FDX should not have too much problems paying its short term obligations.
FDX has a worse Current ratio (1.19) than 73.91% of its industry peers.
FDX has a Quick Ratio of 1.15. This is a normal value and indicates that FDX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of FDX (1.15) is worse than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.15 |
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%.
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 0.27% in the last year.
The Revenue has been growing slightly by 4.90% on average over the past years.
EPS 1Y (TTM)2.36%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%12.2%
Revenue 1Y (TTM)0.27%
Revenue growth 3Y-2.03%
Revenue growth 5Y4.9%
Sales Q2Q%0.5%
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 11.46% on average per year.
FDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.62% yearly.
EPS Next Y2.7%
EPS Next 2Y8.41%
EPS Next 3Y9.08%
EPS Next 5Y11.46%
Revenue Next Year1.92%
Revenue Next 2Y2.86%
Revenue Next 3Y3.12%
Revenue Next 5Y3.62%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.49, FDX is valued correctly.
82.61% of the companies in the same industry are more expensive than FDX, based on the Price/Earnings ratio.
FDX is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.16, FDX is valued correctly.
86.96% of the companies in the same industry are more expensive than FDX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, FDX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
91.30% of the companies in the same industry are more expensive than FDX, based on the Enterprise Value to EBITDA ratio.
FDX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FDX is cheaper than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.02 | ||
| EV/EBITDA | 6.6 |
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)4.63
PEG (5Y)0.9
EPS Next 2Y8.41%
EPS Next 3Y9.08%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.53%.
Compared to an average industry Dividend Yield of 3.75, FDX pays a better dividend. On top of this FDX pays more dividend than 86.96% of the companies listed in the same industry.
FDX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
On average, the dividend of FDX grows each year by 16.33%, 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)16.33%
Div Incr Years4
Div Non Decr Years22
5.3 Sustainability
32.77% 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.
DP32.77%
EPS Next 2Y8.41%
EPS Next 3Y9.08%
227.7
+2.01 (+0.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners80.06%
Inst Owner Change2.52%
Ins Owners8.42%
Ins Owner Change0.47%
Market Cap53.73B
Analysts77.22
Price Target267.24 (17.36%)
Short Float %2.05%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend5.53
Dividend Growth(5Y)16.33%
DP32.77%
Div Incr Years4
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.93%
Min EPS beat(2)-1.52%
Max EPS beat(2)3.38%
EPS beat(4)2
Avg EPS beat(4)-5.07%
Min EPS beat(4)-25.05%
Max EPS beat(4)3.38%
EPS beat(8)5
Avg EPS beat(8)0.74%
EPS beat(12)7
Avg EPS beat(12)0.62%
EPS beat(16)8
Avg EPS beat(16)0.26%
Revenue beat(2)2
Avg Revenue beat(2)0.63%
Min Revenue beat(2)0.3%
Max Revenue beat(2)0.95%
Revenue beat(4)2
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)0.95%
Revenue beat(8)2
Avg Revenue beat(8)-1.23%
Revenue beat(12)2
Avg Revenue beat(12)-2.07%
Revenue beat(16)3
Avg Revenue beat(16)-1.49%
PT rev (1m)-0.88%
PT rev (3m)-5.3%
EPS NQ rev (1m)-2.49%
EPS NQ rev (3m)-13.56%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-7.67%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 12.16 | ||
| P/S | 0.61 | ||
| P/FCF | 18.02 | ||
| P/OCF | 7.64 | ||
| P/B | 1.91 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)18.23
EY8.01%
EPS(NY)18.72
Fwd EY8.22%
FCF(TTM)12.63
FCFY5.55%
OCF(TTM)29.82
OCFY13.1%
SpS372.65
BVpS118.98
TBVpS91
PEG (NY)4.63
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 14.55% | ||
| ROCE | 8.42% | ||
| ROIC | 6.29% | ||
| ROICexc | 6.81% | ||
| ROICexgc | 7.56% | ||
| OM | 6.92% | ||
| PM (TTM) | 4.65% | ||
| GM | 70.95% | ||
| FCFM | 3.39% |
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)7.7%
ROCE(3y)8.07%
ROCE(5y)8.39%
ROICexcg growth 3Y-3.48%
ROICexcg growth 5Y12.86%
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-Score6
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.9 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 95.1% | ||
| Cap/Sales | 4.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.01% | ||
| Profit Quality | 72.96% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.47 |
F-Score6
WACC7.33%
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)2.36%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%12.2%
EPS Next Y2.7%
EPS Next 2Y8.41%
EPS Next 3Y9.08%
EPS Next 5Y11.46%
Revenue 1Y (TTM)0.27%
Revenue growth 3Y-2.03%
Revenue growth 5Y4.9%
Sales Q2Q%0.5%
Revenue Next Year1.92%
Revenue Next 2Y2.86%
Revenue Next 3Y3.12%
Revenue Next 5Y3.62%
EBIT growth 1Y-2.55%
EBIT growth 3Y-2.31%
EBIT growth 5Y16.35%
EBIT Next Year75.42%
EBIT Next 3Y25.21%
EBIT Next 5Y16.36%
FCF growth 1Y-4.94%
FCF growth 3Y-0.97%
FCF growth 5YN/A
OCF growth 1Y-15.35%
OCF growth 3Y-10.55%
OCF growth 5Y6.66%