NYSE:FDX

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Average dividend payer with limited growth.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

FDX

0.2%

US Logistics

-1.1%

US Market


1 Year Return

-9.8%

FDX

-3.2%

US Logistics

17.8%

US Market

Return vs Industry: FDX underperformed the US Logistics industry which returned -3.1% over the past year.

Return vs Market: FDX underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

FDXIndustryMarket
7 Day2.9%0.2%-1.1%
30 Day6.0%-3.9%1.5%
90 Day1.1%-5.8%6.6%
1 Year-8.4%-9.8%-1.3%-3.2%20.2%17.8%
3 Year-13.0%-16.0%8.2%1.8%47.5%38.1%
5 Year-3.0%-7.7%16.6%5.1%71.2%52.4%

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?

575.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FDX ($163.25) is trading above our estimate of fair value ($39.93)

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


Price To Earnings Ratio

PE vs Industry: FDX is poor value based on its PE Ratio (575.8x) compared to the Logistics industry average (21.6x).

PE vs Market: FDX is poor value based on its PE Ratio (575.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: FDX is poor value based on its PEG Ratio (29.1x)


Price to Book Ratio

PB vs Industry: FDX is good value based on its PB Ratio (2.3x) compared to the US Logistics industry average (2.9x).


Next Steps

Future Growth

How is FedEx forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FDX's forecast earnings growth (19.8% per year) is above the savings rate (1.7%).

Earnings vs Market: FDX's earnings (19.8% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: FDX's revenue (4.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: FDX's revenue (4.6% 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 (15.3%).


Next Steps

Past Performance

How has FedEx performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FDX has a large one-off loss of $432.0M impacting its November 30 2019 financial results.

Growing Profit Margin: FDX's current net profit margins (0.1%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: FDX's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: FDX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FDX had negative earnings growth (-98.5%) over the past year, making it difficult to compare to the Logistics industry average (-5.9%).


Return on Equity

High ROE: FDX's Return on Equity (0.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FedEx's financial position?


Financial Position Analysis

Short Term Liabilities: FDX's short term assets ($13.2B) exceed its short term liabilities ($10.5B).

Long Term Liabilities: FDX's short term assets ($13.2B) do not cover its long term liabilities ($40.7B).


Debt to Equity History and Analysis

Debt Level: FDX's debt to equity ratio (100.5%) is considered high.

Reducing Debt: FDX's debt to equity ratio has increased from 30.6% to 100.5% over the past 5 years.

Debt Coverage: FDX's debt is well covered by operating cash flow (29.4%).

Interest Coverage: FDX's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: FDX's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

1.59%

Current Dividend Yield


Upcoming Dividend Payment

Purchase FedEx before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: FDX's dividend (1.59%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FDX's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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 high payout ratio (917%), FDX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FDX's dividends in 3 years are forecast to be well covered by earnings (20.7% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Frederick Smith (75yo)

22.1yrs

Tenure

US$15,961,974

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 ($USD15.96M) is above average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frederick Smith
Founder22.1yrsUS$15.96m7.47% $3.2b
Alan Graf
Executive VP & CFO22.1yrsUS$5.34m0.084% $35.7m
Robert Carter
Executive VP of FedEx Information Services & Chief Information Officer19.7yrsUS$5.96m0.018% $7.7m
Mark Allen
Executive VP2.3yrsUS$4.79m0.0084% $3.6m
Henry Maier
President & CEO of Fedex Ground6.7yrsUS$4.72m0.013% $5.4m
Rajesh Subramaniam
President0.08yrsno data0.016% $6.7m
John Merino
Corporate VP & Principal Accounting Officer0yrsno data0.011% $4.8m
Mickey Foster
Staff Vice President of Investor Relations0yrsno datano data
Brie Carere
Executive VP and Chief Marketing & Communications Officer1.1yrsno data0.0025% $1.1m
Jill Brannon
Executive VP & Chief Sales Officer0.9yrsno data0.0045% $1.9m

4.5yrs

Average Tenure

61yo

Average Age

Experienced Management: FDX's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frederick Smith
Founder22.1yrsUS$15.96m7.47% $3.2b
Rajesh Subramaniam
President0.08yrsno data0.016% $6.7m
John Edwardson
Independent Director16.7yrsUS$331.37k0.030% $12.7m
Paul Walsh
Independent Director24.1yrsUS$315.37k0.0046% $2.0m
Shirley Jackson
Independent Director21.1yrsUS$300.37k0.0034% $1.4m
Susan Schwab
Independent Director10.7yrsUS$300.37k0.0020% $856.8k
David Steiner
Lead Independent Director0yrsUS$321.37k0.010% $4.4m
R. Martin
Independent Director8.4yrsUS$300.37k0.020% $8.5m
Joshua Ramo
Independent Director8.4yrsUS$300.37k0.0020% $856.8k
Kimberly Jabal
Independent Director6.2yrsUS$306.37k0.00080% $341.0k

10.7yrs

Average Tenure

64yo

Average Age

Experienced Board: FDX's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FDX 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.


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$42.628b
  • Shares outstanding: 261.12m
  • Website: https://www.fedex.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FDXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1992
FDX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992
FDXDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
FDXXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1992
FDXSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1992
0QZXLSE (London Stock Exchange)YesCommon StockGBUSDJan 1992
FDXWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992
FDXETLX (Eurotlx)YesCommon StockITEURJan 1992
FDXBASE (Buenos Aires Stock Exchange)CEDEAR EACH 2 REP 1 ORD USD0.10ARARSNov 2002
FDXB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.10BRBRLAug 2012

Biography

FedEx Corporation provides transportation, e-commerce, and business services worldwide. The company’s FedEx Express segment offers shipping services for delivery of packages and freight. Its FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers low-weight and less time-sensitive business-to-consumer packages. The company’s FedEx Freight segment offers less-than-truckload and other freight delivery services. As of May 31, 2019, it operated approximately 28,000 vehicles and 373 service centers. The company’s FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and other back-office support services. It also offers FedEx Mobile, a suite of solutions to track packages, create shipping labels, view account-specific rate quotes, and access drop-off location information; FedEx Office, a suite of printing and shipping management solutions, including digital printing, professional finishing, document creation, direct mail, signs and graphics, copying, computer rental, Wi-Fi, and corporate print solutions; and packing services, supplies, and boxes, as well as FedEx Express and FedEx Ground shipping services. The company’s Corporate, Other and Eliminations segment offers international trade services in customs brokerage, and ocean and air freight forwarding services; cross-border enablement and technology solutions, and e-commerce transportation solutions; integrated supply chain management solutions; time-critical shipment services; and critical inventory and service parts logistics, 3-D printing, and technology repair. It also provides international trade advisory services, including assistance with the customs-trade partnership against terrorism program; and publishes customs duty and tax information. FedEx Corporation was founded in 1971 and is headquartered in Memphis, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 01:27
End of Day Share Price2020/02/21 00:00
Earnings2019/11/30
Annual Earnings2019/05/31


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.