FEDEX CORP (FDX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FDX - US31428X1063 - Common Stock
275.68 USD
-0.15 (-0.05%)
276 USD
+0.32 (+0.12%)
Taking everything into account, FDX scores 6 out of 10 in our fundamental rating. FDX was compared to 23 industry peers in the Air Freight & Logistics industry. FDX scores excellent on profitability, but there are some minor concerns on its financial health. FDX has a correct valuation and a medium growth rate. Finally FDX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FDX was profitable.
FDX had a positive operating cash flow in the past year.
In the past 5 years FDX has always been profitable.
FDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FDX has a better Return On Assets (4.66%) than 78.26% of its industry peers.
Looking at the Return On Equity, with a value of 14.82%, FDX belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
The Return On Invested Capital of FDX (6.32%) is better than 73.91% of its industry peers.
FDX had an Average Return On Invested Capital over the past 3 years of 6.03%. This is significantly below the industry average of 11.50%.
The 3 year average ROIC (6.03%) for FDX 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
Looking at the Profit Margin, with a value of 4.65%, FDX belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
In the last couple of years the Profit Margin of FDX has grown nicely.
With an excellent Operating Margin value of 6.96%, FDX belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
In the last couple of years the Operating Margin of FDX has grown nicely.
FDX's Gross Margin of 71.16% is amongst the best of the industry. FDX outperforms 95.65% of its industry peers.
FDX's Gross Margin has been stable in the last couple of years.
| 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
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.
The debt/assets ratio for FDX is higher compared to a year ago.
2.2 Solvency
FDX has an Altman-Z score of 2.59. This is not the best score and indicates that FDX is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.59, FDX perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
FDX has a debt to FCF ratio of 5.79. This is a neutral value as FDX would need 5.79 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.79, FDX is doing good in the industry, outperforming 69.57% of the companies in the same industry.
FDX has a Debt/Equity ratio of 0.73. This is a neutral value indicating FDX is somewhat dependend on debt financing.
FDX has a Debt to Equity ratio of 0.73. This is in the lower half of the industry: FDX underperforms 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.87
WACC7.3%
2.3 Liquidity
A Current Ratio of 1.25 indicates that FDX should not have too much problems paying its short term obligations.
FDX's Current ratio of 1.25 is on the low side compared to the rest of the industry. FDX is outperformed by 73.91% of its industry peers.
A Quick Ratio of 1.21 indicates that FDX should not have too much problems paying its short term obligations.
FDX's Quick ratio of 1.21 is on the low side compared to the rest of the industry. FDX is outperformed by 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
FDX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.49%, which is quite good.
The Earnings Per Share has been growing by 13.92% on average over the past years. This is quite good.
Looking at the last year, FDX shows a small growth in Revenue. The Revenue has grown by 1.14% in the last year.
FDX 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
Based on estimates for the next years, FDX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.39% on average per year.
The Revenue is expected to grow by 4.18% on average over the next years.
EPS Next Y0.04%
EPS Next 2Y7.44%
EPS Next 3Y8.71%
EPS Next 5Y10.39%
Revenue Next Year4.58%
Revenue Next 2Y4.31%
Revenue Next 3Y4.1%
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.
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
The Price/Earnings ratio is 14.93, which indicates a correct valuation of FDX.
Based on the Price/Earnings ratio, FDX is valued a bit cheaper than 78.26% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. FDX is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.10, the valuation of FDX can be described as correct.
91.30% of the companies in the same industry are more expensive than FDX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.59. FDX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FDX indicates a rather cheap valuation: FDX is cheaper than 86.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.8 | ||
| EV/EBITDA | 7.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FDX does not grow enough to justify the current Price/Earnings ratio.
FDX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)340.12
PEG (5Y)1.07
EPS Next 2Y7.44%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, FDX has a reasonable but not impressive dividend return.
FDX's Dividend Yield is rather good when compared to the industry average which is at 3.47. FDX pays more dividend than 86.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, FDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
On average, the dividend of FDX grows each year by 16.41%, which is quite nice.
FDX has been paying a dividend for at least 10 years, so it has a reliable track record.
FDX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.41%
Div Incr Years4
Div Non Decr Years22
5.3 Sustainability
FDX pays out 32.68% 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.
DP32.68%
EPS Next 2Y7.44%
EPS Next 3Y8.71%
275.68
-0.15 (-0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners79.73%
Inst Owner Change-2.29%
Ins Owners0.24%
Ins Owner Change0.58%
Market Cap65.05B
Revenue(TTM)88.59B
Net Income(TTM)4.12B
Analysts74.86
Price Target278.24 (0.93%)
Short Float %1.92%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend5.55
Dividend Growth(5Y)16.41%
DP32.68%
Div Incr Years4
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.45%
Min EPS beat(2)3.38%
Max EPS beat(2)5.52%
EPS beat(4)3
Avg EPS beat(4)2.57%
Min EPS beat(4)-1.52%
Max EPS beat(4)5.52%
EPS beat(8)5
Avg EPS beat(8)-1.17%
EPS beat(12)8
Avg EPS beat(12)3.89%
EPS beat(16)9
Avg EPS beat(16)1.35%
Revenue beat(2)2
Avg Revenue beat(2)1.32%
Min Revenue beat(2)0.95%
Max Revenue beat(2)1.69%
Revenue beat(4)3
Avg Revenue beat(4)0.32%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)1.69%
Revenue beat(8)3
Avg Revenue beat(8)-0.82%
Revenue beat(12)3
Avg Revenue beat(12)-1.72%
Revenue beat(16)4
Avg Revenue beat(16)-1.34%
PT rev (1m)2.38%
PT rev (3m)3.24%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)-2.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.58%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 13.1 | ||
| P/S | 0.73 | ||
| P/FCF | 17.8 | ||
| P/OCF | 8.6 | ||
| P/B | 2.34 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 7.66 |
EPS(TTM)18.46
EY6.7%
EPS(NY)21.04
Fwd EY7.63%
FCF(TTM)15.49
FCFY5.62%
OCF(TTM)32.06
OCFY11.63%
SpS375.45
BVpS117.69
TBVpS89.42
PEG (NY)340.12
PEG (5Y)1.07
Graham Number221.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 14.82% | ||
| ROCE | 8.46% | ||
| ROIC | 6.32% | ||
| ROICexc | 6.91% | ||
| ROICexgc | 7.67% | ||
| OM | 6.96% | ||
| PM (TTM) | 4.65% | ||
| GM | 71.16% | ||
| FCFM | 4.12% |
ROA(3y)4.73%
ROA(5y)4.99%
ROE(3y)15.15%
ROE(5y)16.47%
ROIC(3y)6.03%
ROIC(5y)6.27%
ROICexc(3y)6.59%
ROICexc(5y)6.9%
ROICexgc(3y)7.32%
ROICexgc(5y)7.71%
ROCE(3y)8.07%
ROCE(5y)8.39%
ROICexgc growth 3Y-3.37%
ROICexgc growth 5Y12.94%
ROICexc growth 3Y-3.24%
ROICexc growth 5Y13.26%
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%
F-Score5
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.79 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 91.42% | ||
| Cap/Sales | 4.41% | ||
| Interest Coverage | 7.25 | ||
| Cash Conversion | 72.42% | ||
| Profit Quality | 88.78% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.59 |
F-Score5
WACC7.3%
ROIC/WACC0.87
Cap/Depr(3y)121.23%
Cap/Depr(5y)137.83%
Cap/Sales(3y)5.79%
Cap/Sales(5y)6.32%
Profit Quality(3y)70.96%
Profit Quality(5y)74.93%
High Growth Momentum
Growth
EPS 1Y (TTM)9.49%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%6.39%
EPS Next Y0.04%
EPS Next 2Y7.44%
EPS Next 3Y8.71%
EPS Next 5Y10.39%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y-2.03%
Revenue growth 5Y4.9%
Sales Q2Q%3.08%
Revenue Next Year4.58%
Revenue Next 2Y4.31%
Revenue Next 3Y4.1%
Revenue Next 5Y4.18%
EBIT growth 1Y5.27%
EBIT growth 3Y-2.31%
EBIT growth 5Y16.35%
EBIT Next Year73.01%
EBIT Next 3Y25.8%
EBIT Next 5Y16.83%
FCF growth 1Y11.03%
FCF growth 3Y-0.97%
FCF growth 5YN/A
OCF growth 1Y-20.12%
OCF growth 3Y-10.55%
OCF growth 5Y6.66%
FEDEX CORP / FDX FAQ
Can you provide the ChartMill fundamental rating for FEDEX CORP?
ChartMill assigns a fundamental rating of 6 / 10 to FDX.
Can you provide the valuation status for FEDEX CORP?
ChartMill assigns a valuation rating of 6 / 10 to FEDEX CORP (FDX). This can be considered as Fairly Valued.
What is the profitability of FDX stock?
FEDEX CORP (FDX) has a profitability rating of 8 / 10.
What is the expected EPS growth for FEDEX CORP (FDX) stock?
The Earnings per Share (EPS) of FEDEX CORP (FDX) is expected to grow by 0.04% in the next year.
Can you provide the dividend sustainability for FDX stock?
The dividend rating of FEDEX CORP (FDX) is 7 / 10 and the dividend payout ratio is 32.68%.