FEDEX CORP (1FDX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1FDX - US31428X1063 - Common Stock
206.3 EUR
-1.95 (-0.94%)
1FDX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 16 industry peers in the Air Freight & Logistics industry. While 1FDX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1FDX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1FDX was profitable.
- 1FDX had a positive operating cash flow in the past year.
- Each year in the past 5 years 1FDX has been profitable.
- 1FDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 4.66%, 1FDX perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- 1FDX's Return On Equity of 14.82% is in line compared to the rest of the industry. 1FDX outperforms 53.33% of its industry peers.
- 1FDX has a better Return On Invested Capital (6.32%) than 66.67% of its industry peers.
- 1FDX had an Average Return On Invested Capital over the past 3 years of 6.03%. This is below the industry average of 9.76%.
- The 3 year average ROIC (6.03%) for 1FDX 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
- With a decent Profit Margin value of 4.65%, 1FDX is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- 1FDX's Profit Margin has improved in the last couple of years.
- 1FDX has a better Operating Margin (6.96%) than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of 1FDX has grown nicely.
- 1FDX has a Gross Margin of 71.16%. This is amongst the best in the industry. 1FDX outperforms 86.67% of its industry peers.
- In the last couple of years the Gross Margin of 1FDX has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1FDX is destroying value.
- Compared to 1 year ago, 1FDX has less shares outstanding
- 1FDX has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for 1FDX is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.50 indicates that 1FDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1FDX has a Altman-Z score of 2.50. This is in the better half of the industry: 1FDX outperforms 73.33% of its industry peers.
- 1FDX has a debt to FCF ratio of 5.79. This is a neutral value as 1FDX would need 5.79 years to pay back of all of its debts.
- The Debt to FCF ratio of 1FDX (5.79) is comparable to the rest of the industry.
- 1FDX has a Debt/Equity ratio of 0.73. This is a neutral value indicating 1FDX is somewhat dependend on debt financing.
- 1FDX's Debt to Equity ratio of 0.73 is fine compared to the rest of the industry. 1FDX outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.91
WACC6.94%
2.3 Liquidity
- 1FDX has a Current Ratio of 1.25. This is a normal value and indicates that 1FDX is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of 1FDX (1.25) is comparable to the rest of the industry.
- A Quick Ratio of 1.21 indicates that 1FDX should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.21, 1FDX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
- 1FDX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.49%, which is quite good.
- 1FDX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.92% yearly.
- Looking at the last year, 1FDX shows a small growth in Revenue. The Revenue has grown by 1.14% in the last year.
- 1FDX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.90% yearly.
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
- 1FDX 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 Y1.04%
EPS Next 2Y7.65%
EPS Next 3Y8.49%
EPS Next 5Y10.39%
Revenue Next Year4.57%
Revenue Next 2Y4.33%
Revenue Next 3Y4.05%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- 1FDX is valuated correctly with a Price/Earnings ratio of 12.93.
- Based on the Price/Earnings ratio, 1FDX is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- 1FDX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 11.30, the valuation of 1FDX can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1FDX indicates a somewhat cheap valuation: 1FDX is cheaper than 80.00% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of 1FDX to the average of the S&P500 Index (25.83), we can say 1FDX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1FDX.
- 1FDX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.41 | ||
| EV/EBITDA | 6.83 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 1FDX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)12.47
PEG (5Y)0.93
EPS Next 2Y7.65%
EPS Next 3Y8.49%
5. Dividend
5.1 Amount
- 1FDX has a Yearly Dividend Yield of 2.45%.
- Compared to an average industry Dividend Yield of 2.93, 1FDX has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 1FDX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
- The dividend of 1FDX is nicely growing with an annual growth rate of 16.41%!
Dividend Growth(5Y)16.41%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 1FDX pays out 32.68% of its income as dividend. This is a sustainable payout ratio.
- 1FDX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.68%
EPS Next 2Y7.65%
EPS Next 3Y8.49%
FEDEX CORP / 1FDX.MI FAQ
Can you provide the ChartMill fundamental rating for FEDEX CORP?
ChartMill assigns a fundamental rating of 5 / 10 to 1FDX.MI.
What is the valuation status for 1FDX stock?
ChartMill assigns a valuation rating of 4 / 10 to FEDEX CORP (1FDX.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for FEDEX CORP?
FEDEX CORP (1FDX.MI) has a profitability rating of 7 / 10.
What is the valuation of FEDEX CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FEDEX CORP (1FDX.MI) is 12.93 and the Price/Book (PB) ratio is 2.03.
Can you provide the dividend sustainability for 1FDX stock?
The dividend rating of FEDEX CORP (1FDX.MI) is 4 / 10 and the dividend payout ratio is 32.68%.