Expeditors International of Washington (NasdaqGS:EXPD) - Share price, News & Analysis

EXPD fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	4/6
Financial Health	6/6
Dividends	4/6

EXPD Stock Overview

Expeditors International of Washington, Inc.

Rewards

Trading at 23.1% below our estimate of its fair value

Earnings have grown 22.8% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of 10.3% per year for the next 3 years

High level of non-cash earnings

Expeditors International of Washington Competitors

United Parcel Service

NYSE:UPS

US$149.4b

FedEx

NYSE:FDX

US$52.1b

C.H. Robinson Worldwide

NasdaqGS:CHRW

US$12.9b

Forward Air

NasdaqGS:FWRD

US$2.5b

Price History & Performance

Summary of all time highs, changes and price drops for Expeditors International of Washington
Historical stock prices
Current Share Price	US$105.44
52 Week High	US$137.80
52 Week Low	US$94.95
Beta	0.85
1 Month Change	6.04%
3 Month Change	-0.73%
1 Year Change	-13.64%
3 Year Change	47.04%
5 Year Change	99.13%
Change since IPO	12,753.63%

Recent News & Updates

May 10

Expeditors Puts Cyber Attack In Rear View Mirror

This is an update on my long thesis on Expeditors. First quarter earnings included an update on the status and impact of February cyber attack. Unfortunately, working capital continues to restrain cash flow to some extent, as accounts receivable grew once again.

Apr 07

Expeditors Stumbles Into Value Territory

An update to my bullish thesis on Expeditors, which continues to enjoy strong tailwinds due to increased demand for its logistics expertise. Its moat remains intact, in my view, despite a recent cyber attack event that will hurt performance in the near term. Although not fully resolved yet, the IT problems will not last much longer. In the meantime, shares have become historically cheap. For those who can look past the next couple of quarters, an entry level at these prices will very likely turn out well.

Shareholder Returns

	EXPD	US Logistics	US Market
7D	-5.5%	-4.0%	-2.7%
1Y	-13.6%	-21.5%	-12.9%

Return vs Industry: EXPD exceeded the US Logistics industry which returned -21.5% over the past year.

Return vs Market: EXPD matched the US Market which returned -12.9% over the past year.

Price Volatility

Is EXPD's price volatile compared to industry and market?
EXPD volatility
EXPD Average Weekly Movement	5.1%
Logistics Industry Average Movement	6.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: EXPD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: EXPD's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1979	19,070	Jeff Musser	https://www.expeditors.com

Expeditors International of Washington, Inc. provides logistics services in the Americas, North Asia, South Asia, Europe, the Middle East, Africa, and India. The company offers airfreight services, such as air freight consolidation and forwarding; ocean freight and ocean services, including ocean freight consolidation, direct ocean forwarding, and order management; customs brokerage, intra-continental ground transportation and delivery, and warehousing and distribution services; and customs clearance, purchase order management, vendor consolidation, time-definite transportation services, temperature-controlled transit, cargo insurance, specialized cargo monitoring and tracking, and other supply chain solutions. It also provides optimization, trade compliance, consulting, cargo security, and solutions.

Expeditors International of Washington Fundamentals Summary

How do Expeditors International of Washington's earnings and revenue compare to its market cap?
EXPD fundamental statistics
Market Cap	US$17.69b
Earnings (TTM)	US$1.47b
Revenue (TTM)	US$17.99b

12.0x

P/E Ratio

1.0x

P/S Ratio

Is EXPD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EXPD income statement (TTM)
Revenue	US$17.99b
Cost of Revenue	US$15.67b
Gross Profit	US$2.32b
Other Expenses	US$846.51m
Earnings	US$1.47b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 02, 2022

Earnings per share (EPS)	8.79
Gross Margin	12.90%
Net Profit Margin	8.20%
Debt/Equity Ratio	0%

How did EXPD perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

13%

Payout Ratio

Does EXPD pay a reliable dividends?

See EXPD dividend history and benchmarks

When do you need to buy EXPD by to receive an upcoming dividend?
Expeditors International of Washington dividend dates
Ex Dividend Date	May 31 2022
Dividend Pay Date	Jun 15 2022
Days until Ex dividend	7 days
Days until Dividend pay date	22 days

Does EXPD pay a reliable dividends?

See EXPD dividend history and benchmarks

Valuation

Is Expeditors International of Washington undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

23.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EXPD ($105.44) is trading below our estimate of fair value ($137.11)

Significantly Below Fair Value: EXPD is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: EXPD is poor value based on its PE Ratio (12x) compared to the US Logistics industry average (11.1x).

PE vs Market: EXPD is good value based on its PE Ratio (12x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: EXPD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: EXPD is overvalued based on its PB Ratio (4.6x) compared to the US Logistics industry average (2.5x).

Future Growth

How is Expeditors International of Washington forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-10.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXPD's earnings are forecast to decline over the next 3 years (-10.3% per year).

Earnings vs Market: EXPD's earnings are forecast to decline over the next 3 years (-10.3% per year).

High Growth Earnings: EXPD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: EXPD's revenue is expected to decline over the next 3 years (-7.8% per year).

High Growth Revenue: EXPD's revenue is forecast to decline over the next 3 years (-7.8% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: EXPD's Return on Equity is forecast to be high in 3 years time (20.8%)

Past Performance

How has Expeditors International of Washington performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EXPD has a high level of non-cash earnings.

Growing Profit Margin: EXPD's current net profit margins (8.2%) are higher than last year (7.9%).

Past Earnings Growth Analysis

Earnings Trend: EXPD's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: EXPD's earnings growth over the past year (71.2%) exceeds its 5-year average (22.8% per year).

Earnings vs Industry: EXPD earnings growth over the past year (71.2%) underperformed the Logistics industry 71.2%.

Return on Equity

High ROE: EXPD's Return on Equity (38.5%) is considered high.

Financial Health

How is Expeditors International of Washington's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EXPD's short term assets ($7.0B) exceed its short term liabilities ($3.7B).

Long Term Liabilities: EXPD's short term assets ($7.0B) exceed its long term liabilities ($384.7M).

Debt to Equity History and Analysis

Debt Level: EXPD is debt free.

Reducing Debt: EXPD has not had any debt for past 5 years.

Debt Coverage: EXPD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EXPD has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Expeditors International of Washington current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.27%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: EXPD's dividend (1.27%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: EXPD's dividend (1.27%) is low compared to the top 25% of dividend payers in the US market (4.11%).

Stability and Growth of Payments

Stable Dividend: EXPD's dividends per share have been stable in the past 10 years.

Growing Dividend: EXPD's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (13.3%), EXPD's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (25.4%), EXPD's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.9yrs

Average management tenure

CEO

Jeff Musser (55 yo)

8.42yrs

Tenure

US$13,026,304

Compensation

Mr. Jeffrey S. Musser, also known as Jeff, has been the Chief Executive Officer and President of Expeditors International of Washington, Inc. since December 19, 2013. Mr. Musser served as Chief Information...

CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD13.03M) is about average for companies of similar size in the US market ($USD13.34M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: EXPD's management team is seasoned and experienced (7.9 years average tenure).

Board Members

Experienced Board: EXPD's board of directors are considered experienced (6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31