FEDEX CORP (FDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FDX - US31428X1063 - Common Stock
275.83 USD
+1.96 (+0.72%)
275.83 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. FDX scores excellent on profitability, but there are some minor concerns on its financial health. FDX has a decent growth rate and is not valued too expensively. 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.
FDX had positive earnings in each of the past 5 years.
FDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FDX has a better Return On Assets (4.66%) than 78.26% of its industry peers.
The Return On Equity of FDX (14.82%) is better than 82.61% of its industry peers.
FDX's Return On Invested Capital of 6.32% is fine compared to the rest of the industry. FDX outperforms 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 11.50%.
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.
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.
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.
FDX has less shares outstanding than it did 1 year ago.
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 2.59 indicates that FDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FDX has a Altman-Z score (2.59) which 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.
FDX has a better Debt to FCF ratio (5.79) than 69.57% of its industry peers.
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 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.87
WACC7.29%
2.3 Liquidity
A Current Ratio of 1.25 indicates that FDX should not have too much problems paying its short term obligations.
The Current ratio of FDX (1.25) is worse than 73.91% 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.
The Quick ratio of FDX (1.21) is worse than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.49% over the past year.
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.
The Revenue has been growing slightly by 1.14% in the past year.
Measured over the past years, FDX shows a small growth in Revenue. The Revenue has been growing by 4.90% on average per year.
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
FDX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.39% yearly.
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
Based on the Price/Earnings ratio of 14.94, the valuation of FDX can be described as correct.
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.
FDX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 13.11, which 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.
The average S&P500 Price/Forward Earnings ratio is at 36.12. FDX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.94 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FDX is valued a bit cheaper than 78.26% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FDX indicates a rather cheap valuation: FDX is cheaper than 86.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.81 | ||
| EV/EBITDA | 7.67 |
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)340.31
PEG (5Y)1.07
EPS Next 2Y7.44%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.20%. 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 3.61. 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 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
FDX pays out 32.68% of its income as dividend. This is a sustainable payout ratio.
FDX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.68%
EPS Next 2Y7.44%
EPS Next 3Y8.71%
275.83
+1.96 (+0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners79.73%
Inst Owner Change-2.29%
Ins Owners0.24%
Ins Owner Change0.58%
Market Cap65.08B
Revenue(TTM)88.59B
Net Income(TTM)4.12B
Analysts74.86
Price Target278.24 (0.87%)
Short Float %1.92%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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)2.38%
PT rev (3m)3.24%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-2.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.58%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.94 | ||
| Fwd PE | 13.11 | ||
| P/S | 0.73 | ||
| P/FCF | 17.81 | ||
| P/OCF | 8.6 | ||
| P/B | 2.34 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)18.46
EY6.69%
EPS(NY)21.04
Fwd EY7.63%
FCF(TTM)15.49
FCFY5.61%
OCF(TTM)32.06
OCFY11.62%
SpS375.45
BVpS117.69
TBVpS89.42
PEG (NY)340.31
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 | 2.59 |
F-Score5
WACC7.29%
ROIC/WACC0.87
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%.