EXPEDITORS INTL WASH INC (NYSE:EXPD) stands out as a strong candidate for quality investors, based on our Caviar Cruise screening methodology. The company demonstrates high profitability, financial health, and consistent growth, making it a compelling choice for long-term investors.
Why EXPD Fits the Quality Investing Criteria
Strong Revenue and EBIT Growth: Over the past five years, EXPD has delivered annual revenue growth of 2.8% and EBIT growth of 6.3%, indicating improving operational efficiency.
High Return on Invested Capital (ROIC): With an ROIC of 56.2%, the company efficiently generates profits from its capital investments, placing it among the top performers in its industry.
Zero Debt and Strong Cash Flow: EXPD has no outstanding debt, and its free cash flow comfortably covers obligations, reflecting financial stability.
Profit Quality: The company converts 103% of net income into free cash flow, demonstrating high earnings quality and efficient cash generation.
Consistent Profitability: EXPD has maintained profitability and positive operating cash flow over the past five years, a key indicator of business resilience.
Fundamental Analysis Summary
Our fundamental report assigns EXPD a rating of 7 out of 10, highlighting its strengths:
Profitability (8/10): High margins and returns on capital, outperforming most peers.
Financial Health (9/10): No debt, strong liquidity, and a solid Altman-Z score.
Valuation (4/10): Priced slightly above industry averages but justified by strong fundamentals.
Growth (5/10): Steady historical growth, though future expectations are modest.
For investors seeking quality stocks with strong financials and operational efficiency, EXPD presents a compelling case.
EXPEDITORS INTL WASH INC (NYSE:EXPD) is a high-quality logistics stock with strong profitability, zero debt, and efficient capital use, making it a solid pick for long-term investors.