NasdaqGS:EXPD

Stock Analysis Report

Expeditors International of Washington

Executive Summary

Expeditors International of Washington, Inc.

Rewards

Trading at 2.8% below its fair value

Earnings are forecast to grow 4.12% per year

Earnings grew by 4.3% over the past year

Pays a reliable dividend of 1.34%

Risk Analysis

No risks detected for EXPD from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Expeditors International of Washington's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EXPD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

EXPD

-0.2%

US Logistics

0.7%

US Market


1 Year Return

4.4%

EXPD

3.9%

US Logistics

18.2%

US Market

Return vs Industry: EXPD exceeded the US Logistics industry which returned 3.9% over the past year.

Return vs Market: EXPD underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

EXPDIndustryMarket
7 Day0.8%-0.2%0.7%
30 Day-3.7%-4.5%1.5%
90 Day-1.5%-4.1%5.0%
1 Year5.9%4.4%6.4%3.9%20.8%18.2%
3 Year38.6%33.1%7.2%0.3%45.2%35.8%
5 Year75.6%63.5%19.8%7.3%71.6%52.7%

Price Volatility Vs. Market

How volatile is Expeditors International of Washington's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

2.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EXPD ($74.38) is trading below our estimate of fair value ($76.52)

Significantly Below Fair Value: EXPD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EXPD is poor value based on its PE Ratio (20.2x) compared to the Logistics industry average (20.2x).

PE vs Market: EXPD is poor value based on its PE Ratio (20.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: EXPD is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: EXPD is overvalued based on its PB Ratio (5.7x) compared to the US Logistics industry average (2.9x).


Next Steps

Future Growth

How is Expeditors International of Washington forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXPD's forecast earnings growth (4.1% per year) is above the savings rate (1.7%).

Earnings vs Market: EXPD's earnings (4.1% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: EXPD's earnings are forecast to grow, but not significantly.

Revenue vs Market: EXPD's revenue (4.5% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: EXPD's revenue (4.5% per year) is forecast to grow slower than 20% 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 (33.5%)


Next Steps

Past Performance

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

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXPD has high quality earnings.

Growing Profit Margin: EXPD's current net profit margins (7.6%) are lower than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: EXPD's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: EXPD's earnings growth over the past year (4.3%) is below its 5-year average (10.8% per year).

Earnings vs Industry: EXPD earnings growth over the past year (4.3%) exceeded the Logistics industry -8.7%.


Return on Equity

High ROE: EXPD's Return on Equity (28.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Expeditors International of Washington's financial position?


Financial Position Analysis

Short Term Liabilities: EXPD's short term assets ($2.8B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: EXPD's short term assets ($2.8B) exceed its long term liabilities ($313.6M).


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

Inventory Level: EXPD has a high level of physical assets or inventory.

Debt Coverage by Assets: EXPD's debt is covered by short term assets (assets are 4.8716510292615E+16x debt).


Next Steps

Dividend

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

1.34%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: EXPD's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: EXPD's dividend (1.34%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.8%), EXPD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EXPD's dividends in 3 years are forecast to be well covered by earnings (29.2% payout ratio).


Next Steps

Management

What is the CEO of Expeditors International of Washington's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Jeff Musser (53yo)

6yrs

Tenure

US$6,915,480

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 ($USD6.92M) is below average for companies of similar size in the US market ($USD10.90M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.2yrs

Average Tenure

53yo

Average Age

Experienced Management: EXPD's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

62yo

Average Age

Experienced Board: EXPD's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$151,09215 Mar 19
Christopher McClincy
EntityIndividual
Role
Chief Information Officer
Senior VP & Chief Information Officer
Shares1,960
Max PriceUS$77.09
SellUS$309,20212 Mar 19
Daniel Wall
EntityIndividual
Role
Senior Key Executive
President of Global Products
Shares4,109
Max PriceUS$75.25

Ownership Breakdown

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


Management Team

  • Eugene Alger (58yo)

    President of Global Services

    • Tenure: 4.3yrs
    • Compensation: US$4.30m
  • Brad Powell (58yo)

    Senior VP & CFO

    • Tenure: 11.2yrs
    • Compensation: US$4.30m
  • Benjamin Clark (50yo)

    Senior VP

    • Tenure: 4.8yrs
  • Dan Wall (50yo)

    President of Global Products

    • Tenure: 4.5yrs
    • Compensation: US$3.90m
  • Jeff Musser (53yo)

    President

    • Tenure: 6yrs
    • Compensation: US$6.92m
  • Christopher McClincy (44yo)

    Senior VP & Chief Information Officer

    • Tenure: 5.8yrs
  • Rick Rostan (62yo)

    President of Global Geographies & Operations

    • Tenure: 2.8yrs
    • Compensation: US$3.84m
  • Steven Grimmer

    Senior Vice President of Account Management

    • Tenure: 0yrs
  • J. Song

    Senior Vice President of Global Sales & Marketing

    • Tenure: 5.5yrs
  • Geoffrey Buscher

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Glenn Alger (62yo)

    Non-Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$264.97k
  • Liane Pelletier (61yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$284.97k
  • Alain Monié (68yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$264.97k
  • Diane Gulyas (62yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$264.97k
  • Mark Emmert (66yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$284.97k
  • Jeff Musser (53yo)

    President

    • Tenure: 6yrs
    • Compensation: US$6.92m
  • Robert Wright (59yo)

    Independent Chairman

    • Tenure: 5.6yrs
    • Compensation: US$439.97k
  • Rich McCune (73yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$289.97k
  • Jim DuBois (55yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$264.97k
  • Bob Carlile (63yo)

    Independent Director

    • Tenure: 0.6yrs

Company Information

Expeditors International of Washington, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Expeditors International of Washington, Inc.
  • Ticker: EXPD
  • Exchange: NasdaqGS
  • Founded: 1979
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: US$12.667b
  • Shares outstanding: 170.30m
  • Website: https://www.expeditors.com

Number of Employees


Location

  • Expeditors International of Washington, Inc.
  • 1015 Third Avenue
  • 12th Floor
  • Seattle
  • Washington
  • 98104
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EXPDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1984
EW1DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1984
0IJRLSE (London Stock Exchange)YesCommon StockGBUSDSep 1984
EXPD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 1984

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:36
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.