FEDEX CORP (FDX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:FDX - US31428X1063 - Common Stock
256.65 EUR
-2.35 (-0.91%)
We assign a fundamental rating of 5 out of 10 to FDX. FDX was compared to 16 industry peers in the Air Freight & Logistics industry. While FDX has a great profitability rating, there are some minor concerns on its financial health. FDX has a decent growth rate and is not valued too expensively.
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.
- FDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 4.86%, FDX perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
- FDX has a Return On Equity of 15.39%. This is comparable to the rest of the industry: FDX outperforms 43.75% of its industry peers.
- FDX has a Return On Invested Capital of 6.56%. This is comparable to the rest of the industry: FDX outperforms 56.25% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FDX is below the industry average of 9.76%.
- The 3 year average ROIC (6.03%) for FDX is below the current ROIC(6.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 15.39% | ||
| ROIC | 6.56% |
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 an excellent Profit Margin value of 4.81%, FDX belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
- FDX's Profit Margin has improved in the last couple of years.
- FDX's Operating Margin of 7.11% is in line compared to the rest of the industry. FDX outperforms 56.25% of its industry peers.
- In the last couple of years the Operating Margin of FDX has grown nicely.
- Looking at the Gross Margin, with a value of 71.27%, FDX belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- In the last couple of years the Gross Margin of FDX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.11% | ||
| PM (TTM) | 4.81% | ||
| GM | 71.27% |
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
- FDX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for FDX has been reduced compared to 1 year ago.
- FDX has less shares outstanding than it did 5 years ago.
- FDX has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.67 indicates that FDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- FDX's Altman-Z score of 2.67 is fine compared to the rest of the industry. FDX outperforms 68.75% of its industry peers.
- The Debt to FCF ratio of FDX is 4.87, which is a neutral value as it means it would take FDX, 4.87 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.87, FDX is in line with its industry, outperforming 56.25% of the companies in the same industry.
- FDX has a Debt/Equity ratio of 0.72. This is a neutral value indicating FDX is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.72, FDX is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.89
WACC7.39%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that FDX should not have too much problems paying its short term obligations.
- FDX has a better Current ratio (1.27) than 68.75% of its industry peers.
- A Quick Ratio of 1.23 indicates that FDX should not have too much problems paying its short term obligations.
- The Quick ratio of FDX (1.23) is better than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- FDX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.65%, which is quite good.
- FDX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.92% yearly.
- The Revenue has been growing slightly by 3.09% 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)13.65%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%19.01%
Revenue 1Y (TTM)3.09%
Revenue growth 3Y-2.03%
Revenue growth 5Y4.9%
Sales Q2Q%6.84%
3.2 Future
- Based on estimates for the next years, FDX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.48% on average per year.
- Based on estimates for the next years, FDX will show a small growth in Revenue. The Revenue will grow by 4.28% on average per year.
EPS Next Y2.73%
EPS Next 2Y8.31%
EPS Next 3Y8.99%
EPS Next 5Y11.48%
Revenue Next Year5.9%
Revenue Next 2Y5.11%
Revenue Next 3Y4.66%
Revenue Next 5Y4.28%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 15.79, the valuation of FDX can be described as correct.
- Based on the Price/Earnings ratio, FDX is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, FDX is valued a bit cheaper.
- FDX is valuated correctly with a Price/Forward Earnings ratio of 14.20.
- Based on the Price/Forward Earnings ratio, FDX is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. FDX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.79 | ||
| Fwd PE | 14.2 |
4.2 Price Multiples
- FDX's Enterprise Value to EBITDA is on the same level as the industry average.
- FDX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.49 | ||
| EV/EBITDA | 8.08 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- FDX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.79
PEG (5Y)1.13
EPS Next 2Y8.31%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
- FDX has a Yearly Dividend Yield of 1.87%. Purely for dividend investing, there may be better candidates out there.
- FDX's Dividend Yield is slightly below the industry average, which is at 2.93.
- Compared to an average S&P500 Dividend Yield of 1.82, FDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
- On average, the dividend of FDX grows each year by 16.41%, which is quite nice.
Dividend Growth(5Y)16.41%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
- FDX pays out 31.16% 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.
DP31.16%
EPS Next 2Y8.31%
EPS Next 3Y8.99%
FEDEX CORP / FDX.DE FAQ
Can you provide the ChartMill fundamental rating for FEDEX CORP?
ChartMill assigns a fundamental rating of 5 / 10 to FDX.DE.
What is the valuation status of FEDEX CORP (FDX.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to FEDEX CORP (FDX.DE). This can be considered as Fairly Valued.
What is the profitability of FDX stock?
FEDEX CORP (FDX.DE) has a profitability rating of 7 / 10.
Can you provide the financial health for FDX stock?
The financial health rating of FEDEX CORP (FDX.DE) is 5 / 10.
How sustainable is the dividend of FEDEX CORP (FDX.DE) stock?
The dividend rating of FEDEX CORP (FDX.DE) is 4 / 10 and the dividend payout ratio is 31.16%.