FedEx Corp (FDX) stock analysis

P/E above its 5-year median

FedEx's P/E of 17.2 is above its own 5-year median of 15.7.

P/E below the industry

FedEx's P/E of 17.2 is below the Air Transportation, Scheduled, and Air Courier median of 17.7.

EV/EBITDA above its 5-year median

FedEx's EV/EBITDA of 8.4 is above its 5-year median of 8.1.

P/B above the industry

FedEx's price-to-book of 2.16 is above the Air Transportation, Scheduled, and Air Courier median of 1.77.

Trading above fair value

The share price of $319.48 is above our fair value estimate of $295.87.

Margin of safety under 20%

The price is 8.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 6.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 8.3% over the last twelve months, against a 5-year average of -3.3% a year.

Growing slower than the industry

Revenue grew 7.7% over the last twelve months; the Air Transportation, Scheduled, and Air Courier median is 11.0%.

Guidance raised

FedEx raised its calendar year 2026 Pension Contributions outlook on Jun 23, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 13.8% over the last twelve months and averaged 15.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.3%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

FedEx's return on equity of 13.8% is below the Air Transportation, Scheduled, and Air Courier median of 13.9%.

Earnings shrank over 5 years

Net income shrank 3.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 4.7% over the last twelve months, against a 5-year average of 4.6%.

Net margin above the industry

FedEx's net margin of 4.7% is above the Air Transportation, Scheduled, and Air Courier median of 4.6%.

High debt

Debt is 56.0% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 86.4% five years ago to 56.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 46.1% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.33 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.81; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

FedEx paid dividends worth 1.7% of the share price over the last twelve months.

Yield below Treasuries

The 1.7% 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; FedEx yields 1.7%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 31.0% of net income.

Covered by free cash flow

Dividends take 26.9% of free cash flow.