About FedEx Corporation
FedEx Corporation, together with its subsidiaries, provides transportation, e-commerce, and business services in the United States and internationally. The company operates through two segments, Express U.S. Domestic and Express International. It provides e-commerce and digital solutions; dataworks; printing and shipping management, including digital printing, professional finishing, document creation, design solutions, direct mail, signs and graphics, custom-branded boxes, copying, computer rental, Wi-Fi, corporate print solutions, shredding, U.S. passport processing and renewal, and digital notarization; packing services, as well as packing supplies and boxes; document and business services; and retail access for package transportation. In addition, the company offers logistics services, air and ocean cargo transportation, specialty transportation, customs brokerage, trade management tools and data, and door-to-door solutions; and third party logistics and supply chain management solutions, such as inbound logistics, warehousing and distribution, fulfillment, contract packaging and product configuration, systems integration, returns process and disposition, test, repair, refurbishment, and product liquidation. Further, it provides sales, marketing, administrative, information technology, and back-office support services. FedEx Corporation was founded in 1971 and is headquartered in Memphis, Tennessee.
FedEx Corporation (FDX) is a Industrials company in the Integrated Freight & Logistics industry with a market capitalisation of $73.8B. The stock trades at 16.66x trailing earnings and yields 1.58%.
- Sector
- Industrials
- Industry
- Integrated Freight & Logistics
- Market cap
- $73.8B
- P/E ratio
- 16.66
- Forward P/E
- 14.95
- EPS (TTM)
- $18.71
- Revenue (TTM)
- $94.7B
- Free cash flow
- $5.7B
- Profit margin
- 4.7%
- Dividend yield
- 1.58%
- Beta
- 1.36
- Shares outstanding
- 236.7M
Financial health: Fair5.9/10
4 strengths, 2 concerns. Weakest points: net margin, earnings growth.
- Debt to equity: 0.76 (Watch, benchmark < 0.5) — Debt of 0.76x equity is moderate against the 0.5x benchmark. It has been broadly flat over the last 4 years.
- Net debt vs cash flow: 2.1y (Strong, benchmark < 4 years) — Net debt of $10.7B is 2.1x annual free cash flow — about 2 years of cash flow to repay.
- Current ratio: 1.48 (Watch, benchmark > 1.5) — Short-term assets cover 1.48x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 14.8% (Watch, benchmark > 15%) — Earns 14.8% on shareholder equity, short of the > 15% mark.
- Gross margin: 27.3% (Watch, benchmark > 40%) — Keeps 27.3% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 4.7% (Concern, benchmark > 10%) — Turns 4.7% of revenue into profit, well short of the > 10% mark.
- Free cash flow: $5.1B (Strong, benchmark positive) — Generated $5.1B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 12.5% (Strong, benchmark > 10%) — Revenue changed 12.5% year on year, comfortably past the > 10% mark.
- Earnings growth: -4.3% (Concern, benchmark > 10%) — Earnings changed -4.3% year on year, well short of the > 10% mark.
- PEG ratio: 1.31 (Watch, benchmark < 1) — At 1.31, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 31.3% (Strong, benchmark < 60%) — Pays out 31.3% of earnings as dividends, leaving room to keep paying.