FEDEX CORP (FDX) Stock Fundamental Analysis
USA - NYSE:FDX - US31428X1063 - Common Stock
231.75 USD
+5.25 (+2.32%)
231.707 USD
-0.04 (-0.02%)
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. While FDX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on FDX. 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.
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
The Return On Assets of FDX (4.66%) is better than 78.26% of its industry peers.
The Return On Equity of FDX (14.55%) is better than 82.61% of its industry peers.
FDX has a better Return On Invested Capital (6.29%) 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 12.53%.
The 3 year average ROIC (6.03%) for FDX is below the current ROIC(6.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 14.55% | ||
| ROIC | 6.29% |
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
FDX has a Profit Margin of 4.65%. This is amongst the best in the industry. FDX outperforms 82.61% of its industry peers.
In the last couple of years the Profit Margin of FDX has grown nicely.
The Operating Margin of FDX (6.92%) is better than 82.61% of its industry peers.
FDX's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 70.95%, FDX belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
FDX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.92% | ||
| PM (TTM) | 4.65% | ||
| GM | 70.95% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FDX is destroying value.
FDX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FDX has less shares outstanding
FDX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.47 indicates that FDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FDX has a Altman-Z score (2.47) which is comparable to the rest of the industry.
The Debt to FCF ratio of FDX is 6.90, which is on the high side as it means it would take FDX, 6.90 years of fcf income to pay off all of its debts.
FDX's Debt to FCF ratio of 6.90 is fine compared to the rest of the industry. FDX outperforms 73.91% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that FDX is somewhat dependend on debt financing.
FDX has a Debt to Equity ratio of 0.68. This is in the lower half of the industry: FDX underperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.9 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.85
WACC7.41%
2.3 Liquidity
FDX has a Current 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.
The Current ratio of FDX (1.19) is worse than 73.91% of its industry peers.
A Quick Ratio of 1.15 indicates that FDX should not have too much problems paying its short term obligations.
FDX's Quick ratio of 1.15 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 | 1.19 | ||
| Quick Ratio | 1.15 |
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 0.27% in the last year.
The Revenue has been growing slightly by 4.90% on average over the past years.
EPS 1Y (TTM)9.49%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%6.39%
Revenue 1Y (TTM)0.27%
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 11.46% on average per year.
FDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.62% yearly.
EPS Next Y2.7%
EPS Next 2Y8.41%
EPS Next 3Y9.08%
EPS Next 5Y11.46%
Revenue Next Year1.92%
Revenue Next 2Y2.86%
Revenue Next 3Y3.12%
Revenue Next 5Y3.62%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.55, FDX is valued correctly.
Based on the Price/Earnings ratio, FDX is valued a bit cheaper than 78.26% of the companies in the same industry.
When comparing the Price/Earnings ratio of FDX to the average of the S&P500 Index (27.38), we can say FDX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.82, the valuation of FDX can be described as reasonable.
91.30% of the companies in the same industry are more expensive than FDX, based on the Price/Forward Earnings ratio.
FDX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 10.82 |
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 91.30% of the companies listed in the same industry.
91.30% of the companies in the same industry are more expensive than FDX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.34 | ||
| EV/EBITDA | 6.62 |
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.
The excellent profitability rating of FDX may justify a higher PE ratio.
PEG (NY)4.65
PEG (5Y)0.9
EPS Next 2Y8.41%
EPS Next 3Y9.08%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.76, FDX pays a better dividend. On top of this FDX pays more dividend than 86.96% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, FDX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
The dividend of FDX is nicely growing with an annual growth rate of 16.33%!
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)16.33%
Div Incr Years4
Div Non Decr Years22
5.3 Sustainability
FDX pays out 32.77% of its income as dividend. This is a sustainable payout ratio.
The dividend of FDX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.77%
EPS Next 2Y8.41%
EPS Next 3Y9.08%
231.75
+5.25 (+2.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners80.06%
Inst Owner Change2.52%
Ins Owners8.42%
Ins Owner Change0.47%
Market Cap54.68B
Analysts77.22
Price Target267.24 (15.31%)
Short Float %2.05%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend5.53
Dividend Growth(5Y)16.33%
DP32.77%
Div Incr Years4
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.93%
Min EPS beat(2)-1.52%
Max EPS beat(2)3.38%
EPS beat(4)2
Avg EPS beat(4)-5.07%
Min EPS beat(4)-25.05%
Max EPS beat(4)3.38%
EPS beat(8)5
Avg EPS beat(8)0.74%
EPS beat(12)7
Avg EPS beat(12)0.62%
EPS beat(16)8
Avg EPS beat(16)0.26%
Revenue beat(2)2
Avg Revenue beat(2)0.63%
Min Revenue beat(2)0.3%
Max Revenue beat(2)0.95%
Revenue beat(4)2
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)0.95%
Revenue beat(8)2
Avg Revenue beat(8)-1.23%
Revenue beat(12)2
Avg Revenue beat(12)-2.07%
Revenue beat(16)3
Avg Revenue beat(16)-1.49%
PT rev (1m)-0.88%
PT rev (3m)-5.3%
EPS NQ rev (1m)-2.49%
EPS NQ rev (3m)-13.56%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-7.67%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.55 | ||
| Fwd PE | 10.82 | ||
| P/S | 0.62 | ||
| P/FCF | 18.34 | ||
| P/OCF | 7.77 | ||
| P/B | 1.95 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 6.62 |
EPS(TTM)18.46
EY7.97%
EPS(NY)21.42
Fwd EY9.24%
FCF(TTM)12.63
FCFY5.45%
OCF(TTM)29.82
OCFY12.87%
SpS372.65
BVpS118.98
TBVpS91
PEG (NY)4.65
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 14.55% | ||
| ROCE | 8.42% | ||
| ROIC | 6.29% | ||
| ROICexc | 6.81% | ||
| ROICexgc | 7.56% | ||
| OM | 6.92% | ||
| PM (TTM) | 4.65% | ||
| GM | 70.95% | ||
| FCFM | 3.39% |
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)7.7%
ROCE(3y)8.07%
ROCE(5y)8.39%
ROICexcg growth 3Y-3.48%
ROICexcg growth 5Y12.86%
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-Score6
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.9 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 95.1% | ||
| Cap/Sales | 4.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.01% | ||
| Profit Quality | 72.96% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.47 |
F-Score6
WACC7.41%
ROIC/WACC0.85
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 Y2.7%
EPS Next 2Y8.41%
EPS Next 3Y9.08%
EPS Next 5Y11.46%
Revenue 1Y (TTM)0.27%
Revenue growth 3Y-2.03%
Revenue growth 5Y4.9%
Sales Q2Q%3.08%
Revenue Next Year1.92%
Revenue Next 2Y2.86%
Revenue Next 3Y3.12%
Revenue Next 5Y3.62%
EBIT growth 1Y-2.55%
EBIT growth 3Y-2.31%
EBIT growth 5Y16.35%
EBIT Next Year75.42%
EBIT Next 3Y25.21%
EBIT Next 5Y16.36%
FCF growth 1Y-4.94%
FCF growth 3Y-0.97%
FCF growth 5YN/A
OCF growth 1Y-15.35%
OCF growth 3Y-10.55%
OCF growth 5Y6.66%