Expeditors International of Washington Inc (EXPD) stock analysis

P/E above its 5-year median

Expeditors International of Washington's P/E of 24.7 is above its own 5-year median of 19.9.

P/E above the industry

Expeditors International of Washington's P/E of 24.7 is above the Transportation Services median of 19.9.

EV/EBITDA above its 5-year median

Expeditors International of Washington's EV/EBITDA of 17.3 is above its 5-year median of 13.0.

P/B above the industry

Expeditors International of Washington's price-to-book of 10.80 is above the Transportation Services median of 1.90.

Trading above fair value

The share price of $194.59 is above our fair value estimate of $138.12.

Margin of safety under 20%

The price is 40.9% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -13.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -10.4% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 23.1% over the last twelve months, against a 5-year average of 3.1% a year.

Growing faster than the industry

Revenue grew 18.6% over the last twelve months; the Transportation Services median is 2.5%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 45.0% over the last twelve months and averaged 37.0% over five years.

Return on capital over 10%

Return on invested capital was 86.9%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Expeditors International of Washington's return on equity of 45.0% is above the Transportation Services median of -22.9%.

Earnings grew over 5 years

Net income grew 3.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 7.9% over the last twelve months, against a 5-year average of 7.9%.

Net margin above the industry

Expeditors International of Washington's net margin of 7.9% is above the Transportation Services median of -6.7%.

No debt

Expeditors International of Washington has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.56 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 8.42; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Expeditors International of Washington paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Expeditors International of Washington yields 0.8%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.