FEDEX CORP (FDX) Stock Fundamental Analysis
NYSE:FDX - New York Stock Exchange, Inc. - US31428X1063 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to FDX. FDX was compared to 22 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 valued quite cheap, while showing a decent growth score. This is a good combination! Finally FDX also has an excellent dividend rating. This makes FDX very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
FDX had positive earnings in the past year.
FDX had a positive operating cash flow in the past year.
Each year in the past 5 years FDX has been profitable.
Each year in the past 5 years FDX had a positive operating cash flow.
1.2 Ratios
FDX has a better Return On Assets (4.60%) than 77.27% of its industry peers.
The Return On Equity of FDX (14.65%) is better than 81.82% of its industry peers.
With a decent Return On Invested Capital value of 6.22%, FDX is doing good in the industry, outperforming 72.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FDX is significantly below the industry average of 11.75%.
The last Return On Invested Capital (6.22%) for FDX is above the 3 year average (6.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 14.65% | ||
| ROIC | 6.22% |
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 Profit Margin of 4.45%. This is amongst the best in the industry. FDX outperforms 81.82% of its industry peers.
In the last couple of years the Profit Margin of FDX has grown nicely.
FDX has a Operating Margin of 6.80%. This is amongst the best in the industry. FDX outperforms 81.82% of its industry peers.
In the last couple of years the Operating Margin of FDX has remained more or less at the same level.
The Gross Margin of FDX (70.84%) is better than 95.45% of its industry peers.
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 | 6.8% | ||
| PM (TTM) | 4.45% | ||
| GM | 70.84% |
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
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.
Compared to 5 years ago, FDX has less shares outstanding
The debt/assets ratio for FDX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.51 indicates that FDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FDX's Altman-Z score of 2.51 is in line compared to the rest of the industry. FDX outperforms 54.55% of its industry peers.
The Debt to FCF ratio of FDX is 5.87, which is a neutral value as it means it would take FDX, 5.87 years of fcf income to pay off all of its debts.
FDX's Debt to FCF ratio of 5.87 is fine compared to the rest of the industry. FDX outperforms 68.18% of its industry peers.
FDX has a Debt/Equity ratio of 0.73. This is a neutral value indicating FDX is somewhat dependend on debt financing.
FDX's Debt to Equity ratio of 0.73 is in line compared to the rest of the industry. FDX outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.85
WACC7.32%
2.3 Liquidity
FDX has a Current 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.
The Current ratio of FDX (1.24) is comparable to the rest of the industry.
FDX has a Quick Ratio of 1.19. This is a normal value and indicates that FDX is financially healthy and should not expect problems in meeting its short term obligations.
FDX has a Quick ratio of 1.19. This is comparable to the rest of the industry: FDX outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
FDX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.33%.
FDX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.78% yearly.
FDX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.34%.
The Revenue has been growing slightly by 4.70% on average over the past years.
EPS 1Y (TTM)1.33%
EPS 3Y-0.68%
EPS 5Y2.78%
EPS Q2Q%16.84%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y1.46%
Revenue growth 5Y4.7%
Sales Q2Q%1.94%
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 11.49% on average per year.
Based on estimates for the next years, FDX will show a small growth in Revenue. The Revenue will grow by 3.01% on average per year.
EPS Next Y3.08%
EPS Next 2Y6.7%
EPS Next 3Y9.26%
EPS Next 5Y11.49%
Revenue Next Year-0.22%
Revenue Next 2Y1.29%
Revenue Next 3Y2.16%
Revenue Next 5Y3.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.51, which indicates a correct valuation of FDX.
FDX's Price/Earnings ratio is a bit cheaper when compared to the industry. FDX is cheaper than 77.27% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. FDX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.84 indicates a reasonable valuation of FDX.
90.91% of the companies in the same industry are more expensive than FDX, based on the Price/Forward Earnings ratio.
FDX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 10.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FDX indicates a rather cheap valuation: FDX is cheaper than 90.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FDX is valued cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.35 | ||
| EV/EBITDA | 6.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of FDX may justify a higher PE ratio.
PEG (NY)4.06
PEG (5Y)4.5
EPS Next 2Y6.7%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.39%.
Compared to an average industry Dividend Yield of 3.89, FDX pays a better dividend. On top of this FDX pays more dividend than 81.82% of the companies listed in the same industry.
FDX's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
On average, the dividend of FDX grows each year by 14.41%, which is quite nice.
FDX has paid a dividend for at least 10 years, which is a reliable track record.
FDX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.41%
Div Incr Years4
Div Non Decr Years22
5.3 Sustainability
FDX pays out 33.69% 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.
DP33.69%
EPS Next 2Y6.7%
EPS Next 3Y9.26%
NYSE:FDX (5/21/2025, 12:54:21 PM)
219.75
-1.39 (-0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners78.66%
Inst Owner Change-1.27%
Ins Owners8.23%
Ins Owner Change-0.1%
Market Cap52.65B
Analysts76.11
Price Target283.6 (29.06%)
Short Float %1.78%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend5.08
Dividend Growth(5Y)14.41%
DP33.69%
Div Incr Years4
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.64%
Min EPS beat(2)-1.64%
Max EPS beat(2)2.91%
EPS beat(4)2
Avg EPS beat(4)-5.92%
Min EPS beat(4)-25.05%
Max EPS beat(4)2.91%
EPS beat(8)4
Avg EPS beat(8)0.29%
EPS beat(12)6
Avg EPS beat(12)0.26%
EPS beat(16)7
Avg EPS beat(16)0%
Revenue beat(2)1
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)0.25%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)0.25%
Revenue beat(8)1
Avg Revenue beat(8)-1.88%
Revenue beat(12)1
Avg Revenue beat(12)-2.29%
Revenue beat(16)3
Avg Revenue beat(16)-1.31%
PT rev (1m)-3.88%
PT rev (3m)-14.13%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-12.15%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-4.41%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 10.84 | ||
| P/S | 0.6 | ||
| P/FCF | 15.35 | ||
| P/OCF | 7.3 | ||
| P/B | 1.97 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 6.61 |
EPS(TTM)17.57
EY8%
EPS(NY)20.28
Fwd EY9.23%
FCF(TTM)14.32
FCFY6.52%
OCF(TTM)30.11
OCFY13.7%
SpS366.51
BVpS111.47
TBVpS85.04
PEG (NY)4.06
PEG (5Y)4.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 14.65% | ||
| ROCE | 8.39% | ||
| ROIC | 6.22% | ||
| ROICexc | 6.7% | ||
| ROICexgc | 7.41% | ||
| OM | 6.8% | ||
| PM (TTM) | 4.45% | ||
| GM | 70.84% | ||
| FCFM | 3.91% |
ROA(3y)4.65%
ROA(5y)4.4%
ROE(3y)15.4%
ROE(5y)14.96%
ROIC(3y)6.15%
ROIC(5y)5.64%
ROICexc(3y)6.77%
ROICexc(5y)6.22%
ROICexgc(3y)7.54%
ROICexgc(5y)6.96%
ROCE(3y)8.29%
ROCE(5y)7.61%
ROICexcg growth 3Y-1.89%
ROICexcg growth 5Y-5.08%
ROICexc growth 3Y-1.17%
ROICexc growth 5Y-3.51%
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%
F-Score6
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.87 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 87.78% | ||
| Cap/Sales | 4.31% | ||
| Interest Coverage | 7.57 | ||
| Cash Conversion | 70.19% | ||
| Profit Quality | 87.7% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 2.51 |
F-Score6
WACC7.32%
ROIC/WACC0.85
Cap/Depr(3y)146.31%
Cap/Depr(5y)151.28%
Cap/Sales(3y)6.66%
Cap/Sales(5y)7.09%
Profit Quality(3y)73.43%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.33%
EPS 3Y-0.68%
EPS 5Y2.78%
EPS Q2Q%16.84%
EPS Next Y3.08%
EPS Next 2Y6.7%
EPS Next 3Y9.26%
EPS Next 5Y11.49%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y1.46%
Revenue growth 5Y4.7%
Sales Q2Q%1.94%
Revenue Next Year-0.22%
Revenue Next 2Y1.29%
Revenue Next 3Y2.16%
Revenue Next 5Y3.01%
EBIT growth 1Y-2.72%
EBIT growth 3Y1.47%
EBIT growth 5Y5.45%
EBIT Next Year67.62%
EBIT Next 3Y25.29%
EBIT Next 5Y16.8%
FCF growth 1Y63.46%
FCF growth 3Y-9.64%
FCF growth 5Y91.11%
OCF growth 1Y-18.96%
OCF growth 3Y-6.4%
OCF growth 5Y8.17%