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FedEx Corp FDX

Morningstar Rating
$244.16 +2.75 (1.14%)
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Company Report

FedEx' Ground-Segment Margins Progressing but Express Profitability Stubbornly Low

Overnight delivery pioneer FedEx is one of three large national carriers that dominate the for-hire small-parcel delivery landscape—FedEx and UPS are the major U.S. incumbents, while DHL Express leads Europe. FedEx is also the largest U.S. less-than-truckload carrier, which helps forge sticky relationships with retail and industrial shippers on the package side. Rival UPS has been around much longer in the U.S. ground market, forging a density advantage and higher margins, but FedEx has gradually enhanced its ground positioning over the past decade, with help from its speed advantage over UPS and capacity investment.

Price vs Fair Value

FDX is trading at a 3% premium.
Price
$244.16
Fair Value
$726.00
Uncertainty
High
1-Star Price
$499.80
5-Star Price
$265.30
Economic Moat
Ngwxfbk
Capital Allocation
Gsngdxs

Bulls Say, Bears Say

Bulls

Despite near-term normalization off lofty levels, FedEx's U.S. ground and express package delivery operations should enjoy positive longer-term tailwinds from e-commerce growth.

Bears

Normalizing e-commerce trends, sluggish retail-sector restocking, and softening industrial end markets will create volume headwinds through much of calendar 2023.

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News

Trading Information

Previous Close Price
$241.41
Day Range
$241.58244.30
52-Week Range
$190.83285.53
Bid/Ask
$243.44 / $244.74
Market Cap
$61.01 Bil
Volume/Avg
124 / 2.5 Mil

Key Statistics

Price/Earnings (Normalized)
14.02
Price/Sales
0.68
Dividend Yield (Trailing)
2.02%
Dividend Yield (Forward)
2.06%
Total Yield
3.08%

Company Profile

FedEx pioneered overnight delivery in 1973 and remains the world's largest express package provider. In its fiscal 2023, which ended May 2023, FedEx derived 47% of revenue from its express division, 37% from ground, and 11% from freight, its asset-based less-than-truckload shipping segment. The remainder comes from other services, including FedEx Office, which provides document production/shipping, and FedEx Logistics, which provides global forwarding. FedEx acquired Dutch parcel delivery firm TNT Express in 2016. TNT was previously the fourth-largest global parcel delivery provider.
Sector
Industrials
Industry
Integrated Freight & Logistics
Stock Style Box
Large Value
Total Number of Employees
787,400

Competitors

Valuation

Metric
FDX
ODFL
UPS
Price/Earnings (Normalized)
14.0238.3614.52
Price/Book Value
2.2111.057.10
Price/Sales
0.688.091.36
Price/Cash Flow
5.0128.8011.69
Price/Earnings
FDX
ODFL
UPS

Financial Strength

Metric
FDX
ODFL
UPS
Quick Ratio
1.221.580.98
Current Ratio
1.341.731.10
Interest Coverage
14.922,495.7111.92
Quick Ratio
FDX
ODFL
UPS

Profitability

Metric
FDX
ODFL
UPS
Return on Assets (Normalized)
5.63%24.80%10.65%
Return on Equity (Normalized)
19.07%32.74%39.23%
Return on Invested Capital (Normalized)
8.15%31.77%18.27%
Return on Assets
FDX
ODFL
UPS
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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 BJszm$127.7 Bil
DPSTF
DHL GroupQvtqjzl$56.1 Bil
DHLGY
DHL Group ADRPnnlgj$56.1 Bil
JBHT
JB Hunt Transport Services IncVsdkqv$21.8 Bil
EXPD
Expeditors International of Washington IncLfhmb$17.4 Bil
ZTO
ZTO Express (Cayman) Inc ADRQppvnkh$15.6 Bil
CHRW
C.H. Robinson Worldwide IncLjw$8.6 Bil
LSTR
Landstar System IncPdxg$6.9 Bil
HUBG
Hub Group Inc Class AVdysl$2.8 Bil

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