NYSE:FDX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$75.7b

Last Updated

2021/06/20 23:30 UTC

Data Sources

Company Financials +

Executive Summary

FedEx Corporation provides transportation, e-commerce, and business services worldwide. More Details


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has FedEx's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FDX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FDX's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.6%

FDX

-3.9%

US Logistics

-1.9%

US Market


1 Year Return

107.3%

FDX

63.1%

US Logistics

38.2%

US Market

Return vs Industry: FDX exceeded the US Logistics industry which returned 63.1% over the past year.

Return vs Market: FDX exceeded the US Market which returned 38.2% over the past year.


Shareholder returns

FDXIndustryMarket
7 Day-3.6%-3.9%-1.9%
30 Day-7.8%-6.6%1.0%
90 Day4.1%13.8%3.8%
1 Year109.9%107.3%65.8%63.1%40.4%38.2%
3 Year22.7%18.0%53.1%44.3%57.5%47.8%
5 Year100.6%89.5%118.7%95.1%127.2%101.7%

Long-Term Price Volatility Vs. Market

How volatile is FedEx's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FedEx undervalued compared to its fair value and its price relative to the market?

24.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FDX ($285.32) is trading above our estimate of fair value ($244.62)

Significantly Below Fair Value: FDX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FDX is good value based on its PE Ratio (24.8x) compared to the US Logistics industry average (26.1x).

PE vs Market: FDX is poor value based on its PE Ratio (24.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: FDX is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: FDX is overvalued based on its PB Ratio (3.4x) compared to the US Logistics industry average (3.2x).


Future Growth

How is FedEx forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FDX's forecast earnings growth (9.5% per year) is above the savings rate (2%).

Earnings vs Market: FDX's earnings (9.5% per year) are forecast to grow slower than the US market (15.7% per year).

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

Revenue vs Market: FDX's revenue (5% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: FDX's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FDX's Return on Equity is forecast to be low in 3 years time (17.5%).


Past Performance

How has FedEx performed over the past 5 years?

-5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FDX has high quality earnings.

Growing Profit Margin: FDX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FDX's earnings have declined by 5.5% per year over the past 5 years.

Accelerating Growth: FDX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FDX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Logistics industry (20.4%).


Return on Equity

High ROE: FDX's Return on Equity (13.8%) is considered low.


Financial Health

How is FedEx's financial position?


Financial Position Analysis

Short Term Liabilities: FDX's short term assets ($21.7B) exceed its short term liabilities ($13.6B).

Long Term Liabilities: FDX's short term assets ($21.7B) do not cover its long term liabilities ($47.2B).


Debt to Equity History and Analysis

Debt Level: FDX's debt to equity ratio (104.2%) is considered high.

Reducing Debt: FDX's debt to equity ratio has increased from 59.7% to 104.2% over the past 5 years.

Debt Coverage: FDX's debt is well covered by operating cash flow (40.2%).

Interest Coverage: FDX's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


Dividend

What is FedEx current dividend yield, its reliability and sustainability?

1.05%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 21 2021Ex Dividend DateJun 25 2021Dividend Pay DateJul 12 202117 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: FDX's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: FDX's dividend (1.05%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.6%), FDX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FDX's dividends in 3 years are forecast to be thoroughly covered by earnings (14.4% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Frederick Smith (76 yo)

23.42yrs

Tenure

US$11,125,799

Compensation

Mr. Frederick W. Smith has been Chairman of FedEx Express since 1975. Mr. Smith has been the Chief Executive Officer of FedEx Corporation since January 1998 and served as its President from January 1998 to...


CEO Compensation Analysis

Compensation vs Market: Frederick's total compensation ($USD11.13M) is about average for companies of similar size in the US market ($USD11.31M).

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


Leadership Team

Experienced Management: FDX's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: FDX's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FDX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

FedEx Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FedEx Corporation
  • Ticker: FDX
  • Exchange: NYSE
  • Founded: 1971
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: US$75.707b
  • Shares outstanding: 265.34m
  • Website: https://www.fedex.com

Number of Employees


Location

  • FedEx Corporation
  • 942 South Shady Grove Road
  • Memphis
  • Tennessee
  • 38120
  • United States

Listings


Biography

FedEx Corporation provides transportation, e-commerce, and business services worldwide. The company’s FedEx Express segment offers express transportation, small-package ground delivery, and freight transpo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 23:30
End of Day Share Price2021/06/18 00:00
Earnings2021/02/28
Annual Earnings2020/05/31


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.