FEDEX CORP (FDX) Stock Fundamental Analysis
NYSE:FDX - New York Stock Exchange, Inc. - US31428X1063 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FDX. 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 has a bad growth rate and is valued cheaply. Finally FDX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FDX had positive earnings in the past year.
In the past year FDX had a positive cash flow from operations.
Of the past 5 years FDX 4 years were profitable.
Each year in the past 5 years FDX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.60%, FDX is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
FDX has a better Return On Equity (14.65%) than 77.27% of its industry peers.
FDX has a better Return On Invested Capital (6.22%) than 72.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FDX is significantly below the industry average of 12.50%.
The last Return On Invested Capital (6.22%) for FDX is above the 3 year average (6.15%), which is a sign of increasing profitability.
| 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
The Profit Margin of FDX (4.45%) is better than 81.82% of its industry peers.
In the last couple of years the Profit Margin of FDX has grown nicely.
The Operating Margin of FDX (6.80%) is better than 81.82% of its industry peers.
FDX's Operating Margin has been stable in the last couple of years.
FDX has a Gross Margin of 70.84%. 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 | 6.8% | ||
| 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.
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
The debt/assets ratio for FDX is higher compared to a year ago.
2.2 Solvency
FDX has an Altman-Z score of 2.55. 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.
FDX has a Altman-Z score (2.55) which is comparable to the rest of the industry.
The Debt to FCF ratio of FDX is 5.87, which is a neutral value as it means it would take FDX, 5.87 years of fcf income to pay off all of its debts.
FDX has a better Debt to FCF ratio (5.87) than 68.18% 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: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.84
WACC7.4%
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.
Looking at the Current ratio, with a value of 1.24, FDX is doing worse than 63.64% of the companies in the same industry.
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.
FDX has a Quick ratio (1.19) which 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 2.36%.
Measured over the past years, FDX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.92% on average per year.
EPS 1Y (TTM)2.36%
EPS 3Y-4.09%
EPS 5Y13.92%
EPS Q2Q%12.2%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
FDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.58% yearly.
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 3Y3.09%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.34, FDX is valued correctly.
Based on the Price/Earnings ratio, FDX is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.04, FDX is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.97, FDX is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FDX indicates a rather cheap valuation: FDX is cheaper than 90.91% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FDX to the average of the S&P500 Index (37.64), we can say FDX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 12.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FDX is valued cheaper than 86.36% of the companies 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 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.98 | ||
| EV/EBITDA | 6.97 |
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 decent profitability rating of FDX may justify a higher PE ratio.
PEG (NY)4.69
PEG (5Y)0.96
EPS Next 2Y8.44%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 2.54%.
Compared to an average industry Dividend Yield of 3.91, FDX pays a better dividend. On top of this FDX pays more dividend than 86.36% of the companies listed in the same industry.
FDX's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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 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 2Y8.44%
EPS Next 3Y9.33%
243.2
+6.69 (+2.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners77.86%
Inst Owner Change-0.35%
Ins Owners8.26%
Ins Owner Change0.47%
Market Cap58.27B
Analysts76.11
Price Target269.62 (10.86%)
Short Float %1.68%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend5.53
Dividend Growth(5Y)16.33%
DP33.69%
Div Incr Years4
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.7%
Min EPS beat(2)-1.52%
Max EPS beat(2)2.91%
EPS beat(4)2
Avg EPS beat(4)-5.89%
Min EPS beat(4)-25.05%
Max EPS beat(4)2.91%
EPS beat(8)4
Avg EPS beat(8)0.31%
EPS beat(12)6
Avg EPS beat(12)0.27%
EPS beat(16)7
Avg EPS beat(16)0.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)0.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)0.3%
Revenue beat(8)1
Avg Revenue beat(8)-1.87%
Revenue beat(12)1
Avg Revenue beat(12)-2.28%
Revenue beat(16)3
Avg Revenue beat(16)-1.31%
PT rev (1m)-4.46%
PT rev (3m)-8.61%
EPS NQ rev (1m)-1.93%
EPS NQ rev (3m)-3.3%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 12.97 | ||
| P/S | 0.66 | ||
| P/FCF | 16.98 | ||
| P/OCF | 8.08 | ||
| P/B | 2.18 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 6.97 |
EPS(TTM)18.23
EY7.5%
EPS(NY)18.75
Fwd EY7.71%
FCF(TTM)14.32
FCFY5.89%
OCF(TTM)30.11
OCFY12.38%
SpS366.51
BVpS111.47
TBVpS85.04
PEG (NY)4.69
PEG (5Y)0.96
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 | 2.55 |
F-Score6
WACC7.4%
ROIC/WACC0.84
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)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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.5%
Revenue Next Year2.13%
Revenue Next 2Y2.94%
Revenue Next 3Y3.09%
Revenue Next 5Y3.58%
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%