FEDEX CORP (FDX) Stock Fundamental Analysis
NYSE:FDX - New York Stock Exchange, Inc. - US31428X1063 - Common Stock - Currency: USD
Taking everything into account, FDX scores 6 out of 10 in our fundamental rating. FDX was compared to 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 is valued quite cheap, while showing a decent growth score. This is a good combination! FDX also has an excellent dividend rating. These ratings could make FDX a good candidate for value and dividend investing.
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.
Each year in the past 5 years FDX had a positive operating cash flow.
1.2 Ratios
FDX's Return On Assets of 4.60% is fine compared to the rest of the industry. FDX outperforms 77.27% of its industry peers.
FDX has a better Return On Equity (14.65%) than 77.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.22%, FDX is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FDX is significantly below the industry average of 12.73%.
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's Profit Margin of 4.45% is amongst the best of the industry. FDX outperforms 81.82% of its industry peers.
In the last couple of years the Profit Margin of FDX has grown nicely.
FDX's Operating Margin of 6.80% is amongst the best of the industry. FDX outperforms 81.82% of its industry peers.
FDX's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 70.84%, FDX belongs to the top of the industry, outperforming 95.45% 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 | 6.8% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FDX is destroying value.
FDX has less shares outstanding than it did 1 year ago.
FDX has less shares outstanding than it did 5 years ago.
FDX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.52 indicates that FDX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of FDX (2.52) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of FDX (5.87) is better than 68.18% of its industry peers.
FDX has a Debt/Equity ratio of 0.73. This is a neutral value indicating FDX is somewhat dependend on debt financing.
The Debt to Equity ratio of FDX (0.73) is worse than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.85
WACC7.31%
2.3 Liquidity
A Current Ratio of 1.24 indicates that FDX should not have too much problems paying its short term obligations.
FDX's Current ratio of 1.24 is in line compared to the rest of the industry. FDX outperforms 40.91% of its industry peers.
FDX has a Quick 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 Quick ratio of FDX (1.19) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
FDX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.33%.
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.
Looking at the last year, FDX shows a small growth in Revenue. The Revenue has grown by 0.34% in the last 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
Based on estimates for the next years, FDX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.33% on average per year.
The Revenue is expected to grow by 2.89% on average over the next years.
EPS Next Y3.08%
EPS Next 2Y6.7%
EPS Next 3Y9.26%
EPS Next 5Y11.33%
Revenue Next Year-0.25%
Revenue Next 2Y1.19%
Revenue Next 3Y2.04%
Revenue Next 5Y2.89%
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
FDX is valuated correctly with a Price/Earnings ratio of 12.77.
Based on the Price/Earnings ratio, FDX is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
FDX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.32.
The Price/Forward Earnings ratio is 11.07, which indicates a very decent valuation of FDX.
90.91% 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 (22.13), we can say FDX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.07 |
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 81.82% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FDX indicates a rather cheap valuation: FDX is cheaper than 86.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.67 | ||
| EV/EBITDA | 6.69 |
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)4.15
PEG (5Y)4.6
EPS Next 2Y6.7%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.58%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.93, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
The dividend of FDX is nicely growing with an annual growth rate of 14.41%!
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 2Y6.7%
EPS Next 3Y9.26%
224.38
-0.62 (-0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners77.86%
Inst Owner Change-1.24%
Ins Owners8.26%
Ins Owner Change-0.1%
Market Cap53.76B
Analysts76.11
Price Target282.2 (25.77%)
Short Float %1.79%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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)-0.49%
PT rev (3m)-13.56%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)-12.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.41%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.07 | ||
| P/S | 0.61 | ||
| P/FCF | 15.67 | ||
| P/OCF | 7.45 | ||
| P/B | 2.01 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 6.69 |
EPS(TTM)17.57
EY7.83%
EPS(NY)20.28
Fwd EY9.04%
FCF(TTM)14.32
FCFY6.38%
OCF(TTM)30.11
OCFY13.42%
SpS366.51
BVpS111.47
TBVpS85.04
PEG (NY)4.15
PEG (5Y)4.6
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 | 2.52 |
F-Score6
WACC7.31%
ROIC/WACC0.85
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 Y3.08%
EPS Next 2Y6.7%
EPS Next 3Y9.26%
EPS Next 5Y11.33%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y1.46%
Revenue growth 5Y4.7%
Sales Q2Q%1.94%
Revenue Next Year-0.25%
Revenue Next 2Y1.19%
Revenue Next 3Y2.04%
Revenue Next 5Y2.89%
EBIT growth 1Y-2.72%
EBIT growth 3Y1.47%
EBIT growth 5Y5.45%
EBIT Next Year67.17%
EBIT Next 3Y24.98%
EBIT Next 5Y16.62%
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%