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Expeditors International of Washington Inc EXPD

Morningstar Rating
$118.77 +0.04 (0.03%)
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Company Report

Expeditors' Global Forwarding Backdrop Remains Soft, but Conditions Stabilizing

Expeditors International ranks among the top 10 global freight forwarders in a highly fragmented industry, and its record of impressive financial performance leads the industry. The company operates more than 250 offices on six continents, with a core focus on Asia-North America trade lanes, though it's also been gradually expanding its presence on key intra-China and European freight lanes over the past decade. As a global forwarder, the company contracts with airlines and ocean carriers for cargo space then fills that capacity with customers' freight. A large customs brokerage operation (including warehousing and distribution services) complements air and ocean services, along with multimodal and final-mile delivery services in North America (Transcon). Expeditors' asset-light model generated excellent returns on capital near 40% over the past decade, with help from its wide economic moat, which is rooted in the network effect.

Price vs Fair Value

EXPD is trading at a 12% premium.
Price
$118.77
Fair Value
$452.00
Uncertainty
Medium
1-Star Price
$956.20
5-Star Price
$17.10
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Expeditors has a long history of impressive execution and industry-leading profitability throughout the business cycle. Its non-asset-based operating model has generated average returns on capital of more than 40% over the past decade.

Bears

Expeditors' global forwarding operations will see incremental top-line and margin pressure in first-half 2024 as the current demand and pricing normalization phase runs its course.

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News

Trading Information

Previous Close Price
$118.73
Day Range
$117.82119.23
52-Week Range
$102.89129.88
Bid/Ask
$116.69 / $120.68
Market Cap
$17.09 Bil
Volume/Avg
1.1 Mil / 1.3 Mil

Key Statistics

Price/Earnings (Normalized)
22.45
Price/Sales
1.92
Dividend Yield (Trailing)
1.16%
Dividend Yield (Forward)
1.16%
Total Yield
8.82%

Company Profile

Expeditors International of Washington is a non-asset-based third-party logistics provider, focused on international freight forwarding. Its offers freight consolidation and forwarding, customs brokerage, warehousing and distribution, purchase order management, vendor consolidation, and numerous other value-added logistics services. It employs sophisticated IT systems and contracts with airlines and ocean carriers to move customers' freight across the globe. The firm operates more than 200 full-service office locations worldwide, in addition to numerous satellite locations. Expeditors derives around 34% of consolidated net revenue from airfreight, 30% from ocean freight, and 36% from customs brokerage and other services.
Sector
Industrials
Industry
Integrated Freight & Logistics
Stock Style Box
Mid Value
Total Number of Employees
18,100

Competitors

Valuation

Metric
EXPD
CHRW
DHL
Price/Earnings (Normalized)
22.4523.1016.23
Price/Book Value
7.156.122.20
Price/Sales
1.920.510.62
Price/Cash Flow
20.5619.776.56
Price/Earnings
EXPD
CHRW
DHL

Financial Strength

Metric
EXPD
CHRW
DHL
Quick Ratio
1.791.320.76
Current Ratio
2.021.400.98
Interest Coverage
197.794.888.97
Quick Ratio
EXPD
CHRW
DHL

Profitability

Metric
EXPD
CHRW
DHL
Return on Assets (Normalized)
16.17%7.18%6.04%
Return on Equity (Normalized)
29.03%28.44%17.58%
Return on Invested Capital (Normalized)
22.87%13.64%9.85%
Return on Assets
EXPD
CHRW
DHL
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Integrated Freight & Logistics Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
UPS
United Parcel Service Inc Class BCrr$126.0 Bil
FDX
FedEx CorpGhcjhh$61.1 Bil
DPSTF
DHL GroupHwvsrgs$55.4 Bil
DHLGY
DHL Group ADRVydtwkf$55.4 Bil
JBHT
JB Hunt Transport Services IncZtyzsj$21.2 Bil
ZTO
ZTO Express (Cayman) Inc ADRPwbkvz$15.5 Bil
CHRW
C.H. Robinson Worldwide IncQhgk$8.7 Bil
LSTR
Landstar System IncGfv$6.8 Bil
HUBG
Hub Group Inc Class AFdqllhs$2.8 Bil

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