FEDEX CORP (FDX) Stock Fundamental Analysis
NYSE:FDX - New York Stock Exchange, Inc. - US31428X1063 - Common Stock - Currency: USD
FDX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 may be a bit undervalued, certainly considering the very reasonable score on growth Finally FDX also has an excellent dividend rating. With these ratings, FDX could be worth investigating further 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.
FDX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.60%, FDX is doing good in the industry, outperforming 77.27% of the companies in the same industry.
FDX's Return On Equity of 14.65% is amongst the best of the industry. FDX outperforms 81.82% of its industry peers.
FDX has a Return On Invested Capital of 6.22%. This is in the better half of the industry: FDX outperforms 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 11.51%.
The 3 year average ROIC (6.15%) for FDX is below the current ROIC(6.22%), indicating increased profibility in the last year.
| 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 better Profit Margin (4.45%) than 81.82% of its industry peers.
FDX's Profit Margin has improved in the last couple of years.
The Operating Margin of FDX (6.80%) is better than 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.
With an excellent Gross Margin value of 70.84%, FDX belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
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.
FDX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FDX has been reduced compared to 5 years ago.
The debt/assets ratio for FDX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.48 indicates that FDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FDX has a Altman-Z score (2.48) which is in line with its industry peers.
FDX has a debt to FCF ratio of 5.87. This is a neutral value as FDX would need 5.87 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.87, FDX is in the better half of the industry, outperforming 68.18% 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 (0.73) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.88
WACC7.07%
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.
FDX has a Current ratio (1.24) which is in line with its industry peers.
A Quick Ratio of 1.19 indicates that FDX should not have too much problems paying its short term obligations.
FDX has a Quick ratio of 1.19. This is comparable to the rest of the industry: FDX outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.33% over the past year.
Measured over the past 5 years, FDX shows a small growth in Earnings Per Share. The EPS has been growing by 2.78% on average per year.
The Revenue has been growing slightly by 0.34% in the past year.
FDX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.70% yearly.
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
FDX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.49% yearly.
FDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.01% yearly.
EPS Next Y3.22%
EPS Next 2Y6.78%
EPS Next 3Y9.45%
EPS Next 5Y11.49%
Revenue Next Year-0.23%
Revenue Next 2Y1.29%
Revenue Next 3Y2.17%
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.
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
A Price/Earnings ratio of 11.97 indicates a reasonable valuation of FDX.
81.82% of the companies in the same industry are more expensive than FDX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FDX to the average of the S&P500 Index (28.88), we can say FDX is valued rather cheaply.
A Price/Forward Earnings ratio of 10.36 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.
The average S&P500 Price/Forward Earnings ratio is at 21.20. FDX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 10.36 |
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 86.36% of the companies listed in the same industry.
FDX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FDX is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.69 | ||
| EV/EBITDA | 6.36 |
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)3.72
PEG (5Y)4.31
EPS Next 2Y6.78%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.56%, FDX has a reasonable but not impressive dividend return.
The stock price of FDX dropped by -20.59% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.94, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
On average, the dividend of FDX grows each year by 14.41%, 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)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 2Y6.78%
EPS Next 3Y9.45%
210.33
+0.48 (+0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners78.66%
Inst Owner Change0.34%
Ins Owners8.23%
Ins Owner Change-0.1%
Market Cap50.40B
Analysts76.76
Price Target284.74 (35.38%)
Short Float %1.72%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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)-11.17%
PT rev (3m)-13.51%
EPS NQ rev (1m)-1.51%
EPS NQ rev (3m)-12.68%
EPS NY rev (1m)-0.94%
EPS NY rev (3m)-6.1%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 10.36 | ||
| P/S | 0.57 | ||
| P/FCF | 14.69 | ||
| P/OCF | 6.98 | ||
| P/B | 1.89 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 6.36 |
EPS(TTM)17.57
EY8.35%
EPS(NY)20.31
Fwd EY9.66%
FCF(TTM)14.32
FCFY6.81%
OCF(TTM)30.11
OCFY14.32%
SpS366.51
BVpS111.47
TBVpS85.04
PEG (NY)3.72
PEG (5Y)4.31
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 | 2.48 |
F-Score6
WACC7.07%
ROIC/WACC0.88
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 Y3.22%
EPS Next 2Y6.78%
EPS Next 3Y9.45%
EPS Next 5Y11.49%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y1.46%
Revenue growth 5Y4.7%
Sales Q2Q%1.94%
Revenue Next Year-0.23%
Revenue Next 2Y1.29%
Revenue Next 3Y2.17%
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%