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. While FDX has a great profitability rating, 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! FDX also has an excellent dividend rating.
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.
In the past 5 years FDX has always been profitable.
In the past 5 years FDX always reported a positive cash flow from operatings.
1.2 Ratios
FDX has a better Return On Assets (4.66%) than 77.27% of its industry peers.
The Return On Equity of FDX (14.55%) is better than 77.27% of its industry peers.
The Return On Invested Capital of FDX (6.29%) is better than 72.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FDX is significantly below the industry average of 12.56%.
The last Return On Invested Capital (6.29%) 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 | 14.55% | ||
| 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 81.82% of its industry peers.
In the last couple of years the Profit Margin of FDX has grown nicely.
With an excellent Operating Margin value of 6.92%, FDX belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
FDX's Operating Margin has improved in the last couple of years.
FDX has a Gross Margin of 70.95%. This is amongst the best in the industry. FDX outperforms 95.45% of its industry peers.
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
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
Compared to 1 year ago, FDX has a worse debt to assets ratio.
2.2 Solvency
FDX has an Altman-Z score of 2.48. 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.
The Altman-Z score of FDX (2.48) 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 72.73% of its industry peers.
FDX has a Debt/Equity ratio of 0.68. This is a neutral value indicating FDX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, FDX is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.9 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.84
WACC7.53%
2.3 Liquidity
A Current Ratio of 1.19 indicates that FDX should not have too much problems paying its short term obligations.
The Current ratio of FDX (1.19) is worse than 68.18% of its industry peers.
FDX has a Quick Ratio of 1.15. 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 1.15. This is in the lower half of the industry: FDX underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.36% 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.
Looking at the last year, FDX shows a small growth in Revenue. The Revenue has grown by 0.27% 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)2.36%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%12.2%
Revenue 1Y (TTM)0.27%
Revenue growth 3Y-2.03%
Revenue growth 5Y4.9%
Sales Q2Q%0.5%
3.2 Future
The Earnings Per Share is expected to grow by 14.47% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.58% on average over the next years.
EPS Next Y2.85%
EPS Next 2Y8.44%
EPS Next 3Y9.33%
EPS Next 5Y14.47%
Revenue Next Year2.13%
Revenue Next 2Y2.94%
Revenue Next 3Y3.08%
Revenue Next 5Y3.58%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.47, the valuation of FDX can be described as correct.
FDX's Price/Earnings ratio is rather cheap when compared to the industry. FDX is cheaper than 81.82% of the companies in the same industry.
FDX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.87.
The Price/Forward Earnings ratio is 12.12, which indicates a correct valuation of FDX.
Based on the Price/Forward Earnings ratio, FDX is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
FDX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
86.36% of the companies in the same industry are more expensive than FDX, based on the Enterprise Value to EBITDA ratio.
FDX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FDX is cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.98 | ||
| EV/EBITDA | 6.73 |
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)4.38
PEG (5Y)0.9
EPS Next 2Y8.44%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.58%, 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 3.83. FDX pays more dividend than 86.36% of the companies in the same industry.
FDX's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
On average, the dividend of FDX grows each year by 16.33%, 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)16.33%
Div Incr Years4
Div Non Decr Years22
5.3 Sustainability
32.77% of the earnings are spent on dividend by FDX. This is a low number and 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 2Y8.44%
EPS Next 3Y9.33%
227.26
-3.81 (-1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners80.06%
Inst Owner Change0.13%
Ins Owners8.42%
Ins Owner Change0.47%
Market Cap53.61B
Analysts77.22
Price Target269.62 (18.64%)
Short Float %1.62%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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)-3.14%
PT rev (3m)-4.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 12.12 | ||
| P/S | 0.61 | ||
| P/FCF | 17.98 | ||
| P/OCF | 7.62 | ||
| P/B | 1.91 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 6.73 |
EPS(TTM)18.23
EY8.02%
EPS(NY)18.75
Fwd EY8.25%
FCF(TTM)12.64
FCFY5.56%
OCF(TTM)29.83
OCFY13.12%
SpS372.73
BVpS119.01
TBVpS91.02
PEG (NY)4.38
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 | 2.48 |
F-Score6
WACC7.53%
ROIC/WACC0.84
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)2.36%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%12.2%
EPS Next Y2.85%
EPS Next 2Y8.44%
EPS Next 3Y9.33%
EPS Next 5Y14.47%
Revenue 1Y (TTM)0.27%
Revenue growth 3Y-2.03%
Revenue growth 5Y4.9%
Sales Q2Q%0.5%
Revenue Next Year2.13%
Revenue Next 2Y2.94%
Revenue Next 3Y3.08%
Revenue Next 5Y3.58%
EBIT growth 1Y-2.55%
EBIT growth 3Y-2.31%
EBIT growth 5Y16.35%
EBIT Next Year75.42%
EBIT Next 3Y25.54%
EBIT Next 5Y22.19%
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%