FEDEX CORP (FDX)
US31428X1063 - Common Stock
Overall FDX gets a fundamental rating of 5 out of 10. We evaluated FDX against 17 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
FDX had positive earnings in each of the past 5 years.
Each year in the past 5 years FDX had a positive operating cash flow.
1.2 Ratios
FDX has a better Return On Assets (5.10%) than 64.71% of its industry peers.
Looking at the Return On Equity, with a value of 16.64%, FDX is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
FDX has a Return On Invested Capital of 6.41%. This is in the better half of the industry: FDX outperforms 64.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FDX is in line with the industry average of 7.59%.
The 3 year average ROIC (6.35%) for FDX is below the current ROIC(6.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 16.64% | ||
| ROIC | 6.41% |
ROA(3y)5.1%
ROA(5y)3.61%
ROE(3y)17.37%
ROE(5y)12.43%
ROIC(3y)6.35%
ROIC(5y)6.1%
1.3 Margins
FDX has a Profit Margin of 5.02%. This is in the better half of the industry: FDX outperforms 76.47% of its industry peers.
In the last couple of years the Profit Margin of FDX has declined.
The Operating Margin of FDX (7.01%) is better than 76.47% of its industry peers.
In the last couple of years the Operating Margin of FDX has declined.
FDX's Gross Margin of 70.92% is amongst the best of the industry. FDX outperforms 94.12% of its industry peers.
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 | 7.01% | ||
| PM (TTM) | 5.02% | ||
| GM | 70.92% |
OM growth 3Y13.09%
OM growth 5Y-3.46%
PM growth 3Y33.35%
PM growth 5Y-8.81%
GM growth 3Y-0.44%
GM growth 5Y-0.71%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FDX is destroying value.
Compared to 1 year ago, FDX has less shares outstanding
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 2.58. 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's Altman-Z score of 2.58 is in line compared to the rest of the industry. FDX outperforms 58.82% of its industry peers.
The Debt to FCF ratio of FDX is 6.06, which is on the high side as it means it would take FDX, 6.06 years of fcf income to pay off all of its debts.
FDX's Debt to FCF ratio of 6.06 is in line compared to the rest of the industry. FDX outperforms 52.94% of its industry peers.
FDX has a Debt/Equity ratio of 0.76. This is a neutral value indicating FDX is somewhat dependend on debt financing.
FDX has a Debt to Equity ratio (0.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.06 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.83
WACC7.7%
2.3 Liquidity
A Current Ratio of 1.31 indicates that FDX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.31, FDX is in line with its industry, outperforming 58.82% of the companies in the same industry.
FDX has a Quick Ratio of 1.26. This is a normal value and indicates that FDX is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.26, FDX perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
FDX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.60%.
The Earnings Per Share has been decreasing by -0.46% on average over the past years.
Looking at the last year, FDX shows a decrease in Revenue. The Revenue has decreased by -5.51% in the last year.
FDX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.61% yearly.
EPS 1Y (TTM)2.6%
EPS 3Y16.37%
EPS 5Y-0.46%
EPS growth Q2Q13.2%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y9.21%
Revenue growth 5Y6.61%
Revenue growth 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 15.82% on average per year.
FDX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.77% yearly.
EPS Next Y19.88%
EPS Next 2Y19.56%
EPS Next 3Y16.75%
EPS Next 5Y15.82%
Revenue Next Year-3.46%
Revenue Next 2Y-0.03%
Revenue Next 3Y1.39%
Revenue Next 5Y3.77%
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 15.34 indicates a correct valuation of FDX.
64.71% 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 (25.20), we can say FDX is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.43 indicates a correct valuation of FDX.
Based on the Price/Forward Earnings ratio, FDX is valued cheaper than 88.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, FDX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 12.43 |
4.2 Price Multiples
76.47% of the companies in the same industry are more expensive than FDX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FDX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.64 | ||
| EV/EBITDA | 7.83 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of FDX may justify a higher PE ratio.
FDX's earnings are expected to grow with 16.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y19.56%
EPS Next 3Y16.75%
5. Dividend
5.1 Amount
FDX has a Yearly Dividend Yield of 1.91%.
Compared to an average industry Dividend Yield of 2.83, FDX pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.45, FDX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
On average, the dividend of FDX grows each year by 18.12%, 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)18.12%
Div Incr Years3
Div Non Decr Years19
5.3 Sustainability
28.21% 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.
DP28.21%
EPS Next 2Y19.56%
EPS Next 3Y16.75%
FEDEX CORP
NYSE:FDX (4/24/2024, 2:42:03 PM)
After market: 266.07 0 (0%)266.07
-5.68 (-2.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap65.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 12.43 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.77
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 16.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.01% | ||
| PM (TTM) | 5.02% | ||
| GM | 70.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.6%
EPS 3Y16.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y19.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y9.21%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y