FEDEX CORP (FDX)
US31428X1063 - Common Stock
Taking everything into account, FDX scores 6 out of 10 in our fundamental rating. FDX was compared to 20 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 is not valued too expensively and it also shows a decent growth rate. FDX also has an excellent dividend rating. These ratings would make FDX suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year FDX was profitable.
In the past year FDX had a positive cash flow from operations.
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
FDX's Return On Assets of 4.66% is fine compared to the rest of the industry. FDX outperforms 68.42% of its industry peers.
FDX's Return On Equity of 14.87% is fine compared to the rest of the industry. FDX outperforms 78.95% of its industry peers.
FDX has a better Return On Invested Capital (5.98%) than 63.16% of its industry peers.
FDX had an Average Return On Invested Capital over the past 3 years of 6.15%. This is significantly below the industry average of 13.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 14.87% | ||
| ROIC | 5.98% |
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 has a better Profit Margin (4.61%) than 78.95% of its industry peers.
FDX's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 6.69%, FDX is doing good in the industry, outperforming 73.68% of the companies in the same industry.
In the last couple of years the Operating Margin of FDX has remained more or less at the same level.
FDX's Gross Margin of 70.49% is amongst the best of the industry. FDX outperforms 94.74% of its industry peers.
FDX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.69% | ||
| PM (TTM) | 4.61% | ||
| GM | 70.49% |
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.
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 has been reduced compared to a year ago.
2.2 Solvency
FDX has an Altman-Z score of 2.62. 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 (2.62) which is comparable to the rest of the industry.
The Debt to FCF ratio of FDX is 7.75, which is on the high side as it means it would take FDX, 7.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FDX (7.75) is better than 68.42% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that FDX is somewhat dependend on debt financing.
FDX has a Debt to Equity ratio of 0.72. This is comparable to the rest of the industry: FDX outperforms 52.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 7.75 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.72
WACC8.26%
2.3 Liquidity
FDX has a Current Ratio of 1.28. 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 Current ratio of 1.28 is in line compared to the rest of the industry. FDX outperforms 57.89% of its industry peers.
FDX has a Quick 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.
Looking at the Quick ratio, with a value of 1.24, FDX is in line with its industry, outperforming 52.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.85% over the past year.
The Earnings Per Share has been growing slightly by 2.78% on average over the past years.
The Revenue has decreased by -1.13% in the past year.
FDX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.70% yearly.
EPS 1Y (TTM)4.85%
EPS 3Y-0.68%
EPS 5Y2.78%
EPS Q2Q%-20.88%
Revenue 1Y (TTM)-1.13%
Revenue growth 3Y1.46%
Revenue growth 5Y4.7%
Sales Q2Q%-0.47%
3.2 Future
The Earnings Per Share is expected to grow by 16.91% on average over the next years. This is quite good.
Based on estimates for the next years, FDX will show a small growth in Revenue. The Revenue will grow by 5.71% on average per year.
EPS Next Y10.9%
EPS Next 2Y13.6%
EPS Next 3Y12.84%
EPS Next 5Y16.91%
Revenue Next Year1.01%
Revenue Next 2Y2.81%
Revenue Next 3Y3.48%
Revenue Next 5Y5.71%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.51, the valuation of FDX can be described as rather expensive.
Based on the Price/Earnings ratio, FDX is valued a bit cheaper than 73.68% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.65. FDX is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.84, which indicates a correct valuation of FDX.
Based on the Price/Forward Earnings ratio, FDX is valued cheaper than 89.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, FDX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 12.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FDX is valued a bit cheaper than 73.68% of the companies in the same industry.
FDX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FDX is cheaper than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.57 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
FDX's 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.
FDX's earnings are expected to grow with 12.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.61
PEG (5Y)6.3
EPS Next 2Y13.6%
EPS Next 3Y12.84%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 1.89%.
Compared to an average industry Dividend Yield of 2.65, FDX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, FDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
5.2 History
The dividend of FDX is nicely growing with an annual growth rate of 14.41%!
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)14.41%
Div Incr Years3
Div Non Decr Years21
5.3 Sustainability
31.68% of the earnings are spent on dividend by FDX. This is a low number and sustainable payout ratio.
FDX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP31.68%
EPS Next 2Y13.6%
EPS Next 3Y12.84%
FEDEX CORP
NYSE:FDX (11/21/2024, 5:13:18 PM)
After market: 295.16 0 (0%)295.16
+7.13 (+2.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap72.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 12.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.61
PEG (5Y)6.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 14.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.69% | ||
| PM (TTM) | 4.61% | ||
| GM | 70.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)4.85%
EPS 3Y-0.68%
EPS 5Y
EPS Q2Q%
EPS Next Y10.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.13%
Revenue growth 3Y1.46%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y