FEDEX CORP (NYSE:FDX) stands out as a stock that provides good value for the fundamentals it showcases.

Uncover the hidden value in FEDEX CORP (NYSE:FDX) as our stock screening tool recommends it as an undervalued choice. FDX maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Analysis for FDX

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of FDX, the assigned 7 reflects its valuation:

• Based on the Price/Earnings ratio, FDX is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
• When comparing the Price/Earnings ratio of FDX to the average of the S&P500 Index (28.63), we can say FDX is valued rather cheaply.
• The Price/Forward Earnings ratio is 10.26, which indicates a very decent valuation of FDX.
• Based on the Price/Forward Earnings ratio, FDX is valued cheaper than 91.30% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.72, FDX is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, FDX is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
• FDX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FDX is cheaper than 78.26% of the companies in the same industry.
• The decent profitability rating of FDX may justify a higher PE ratio.
• A more expensive valuation may be justified as FDX's earnings are expected to grow with 12.03% in the coming years.

Assessing Profitability for FDX

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. FDX scores a 7 out of 10:

• With a decent Return On Assets value of 4.54%, FDX is doing good in the industry, outperforming 73.91% of the companies in the same industry.
• FDX has a Return On Equity of 14.67%. This is in the better half of the industry: FDX outperforms 78.26% of its industry peers.
• The Return On Invested Capital of FDX (6.07%) is better than 69.57% of its industry peers.
• FDX's Profit Margin of 4.44% is fine compared to the rest of the industry. FDX outperforms 78.26% of its industry peers.
• In the last couple of years the Profit Margin of FDX has grown nicely.
• With a decent Operating Margin value of 6.65%, FDX is doing good in the industry, outperforming 73.91% of the companies in the same industry.
• The Gross Margin of FDX (70.74%) is better than 95.65% of its industry peers.

Deciphering FDX's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. FDX has achieved a 5 out of 10:

• The Altman-Z score of FDX (2.54) is better than 60.87% of its industry peers.
• FDX has a Debt to FCF ratio of 7.57. This is in the better half of the industry: FDX outperforms 69.57% of its industry peers.

Understanding FDX's Growth Score

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. FDX was assigned a score of 4 for growth:

• FDX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.37% yearly.
• 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.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of FDX for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.