FEDEX CORP (FDX) Stock Fundamental Analysis
USA - NYSE:FDX - US31428X1063 - Common Stock
252.99 USD
-0.83 (-0.33%)
251.94 USD
-1.05 (-0.42%)
We assign a fundamental rating of 6 out of 10 to FDX. 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. FDX has a decent growth rate and is not valued too expensively. FDX also has an excellent dividend rating.
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.
In the past 5 years FDX always reported a positive cash flow from operatings.
1.2 Ratios
FDX's Return On Assets of 4.66% is fine compared to the rest of the industry. FDX outperforms 78.26% of its industry peers.
With an excellent Return On Equity value of 14.82%, FDX belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
FDX's Return On Invested Capital of 6.32% is fine compared to the rest of the industry. FDX outperforms 73.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FDX is significantly below the industry average of 11.58%.
The last Return On Invested Capital (6.32%) for FDX is above the 3 year average (6.03%), which is a sign of increasing profitability.
| 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
The Profit Margin of FDX (4.65%) is better than 82.61% of its industry peers.
In the last couple of years the Profit Margin of FDX has grown nicely.
FDX has a better Operating Margin (6.96%) than 82.61% of its industry peers.
FDX's Operating Margin has improved in the last couple of years.
FDX has a better Gross Margin (71.16%) than 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.
FDX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FDX has less shares outstanding
The debt/assets ratio for FDX is higher compared to a year ago.
2.2 Solvency
FDX has an Altman-Z score of 2.53. 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.
Looking at the Altman-Z score, with a value of 2.53, FDX is in line with its industry, outperforming 56.52% 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.
FDX has a better Debt to FCF ratio (5.79) than 69.57% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that FDX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.73, FDX is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.87
WACC7.28%
2.3 Liquidity
A Current Ratio of 1.25 indicates that FDX should not have too much problems paying its short term obligations.
FDX has a Current ratio of 1.25. This is in the lower half of the industry: FDX underperforms 69.57% of its industry peers.
FDX has a Quick Ratio of 1.21. This is a normal value and indicates that FDX is financially healthy and should not expect problems in meeting 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
The Earnings Per Share has grown by an nice 9.49% over the past year.
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 1.14% in the past 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.
FDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.18% yearly.
EPS Next Y0.04%
EPS Next 2Y7.44%
EPS Next 3Y8.91%
EPS Next 5Y10.39%
Revenue Next Year4.58%
Revenue Next 2Y4.31%
Revenue Next 3Y4.23%
Revenue Next 5Y4.18%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
FDX is valuated correctly with a Price/Earnings ratio of 13.70.
78.26% of the companies in the same industry are more expensive than FDX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.51. FDX is valued slightly cheaper when compared to this.
FDX is valuated correctly with a Price/Forward Earnings ratio of 12.02.
91.30% of the companies in the same industry are more expensive than FDX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FDX to the average of the S&P500 Index (22.53), we can say FDX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.02 |
4.2 Price Multiples
86.96% of the companies in the same industry are more expensive than FDX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FDX is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.34 | ||
| EV/EBITDA | 7.17 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)312.13
PEG (5Y)0.98
EPS Next 2Y7.44%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.33%. Purely for dividend investing, there may be better candidates out there.
FDX's Dividend Yield is rather good when compared to the industry average which is at 3.60. FDX pays more dividend than 86.96% of the companies 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 | 2.33% |
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
32.68% of the earnings are spent on dividend by FDX. This is a low number and 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 3Y8.91%
252.99
-0.83 (-0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners79.73%
Inst Owner Change-0.98%
Ins Owners0.24%
Ins Owner Change0.58%
Market Cap59.70B
Revenue(TTM)88.59B
Net Income(TTM)4.12B
Analysts74.29
Price Target272.51 (7.72%)
Short Float %2%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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)1.97%
PT rev (3m)1.07%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-3.33%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-2.73%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.7 | ||
| Fwd PE | 12.02 | ||
| P/S | 0.67 | ||
| P/FCF | 16.34 | ||
| P/OCF | 7.89 | ||
| P/B | 2.15 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 7.17 |
EPS(TTM)18.46
EY7.3%
EPS(NY)21.04
Fwd EY8.32%
FCF(TTM)15.49
FCFY6.12%
OCF(TTM)32.06
OCFY12.67%
SpS375.45
BVpS117.69
TBVpS89.42
PEG (NY)312.13
PEG (5Y)0.98
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 | 2.53 |
F-Score5
WACC7.28%
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 3Y8.91%
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 3Y4.23%
Revenue Next 5Y4.18%
EBIT growth 1Y5.27%
EBIT growth 3Y-2.31%
EBIT growth 5Y16.35%
EBIT Next Year73.01%
EBIT Next 3Y25.77%
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%.