FDX

FedEx

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Industrials

industry

Integrated Freight & Logistics

Exchange

NYSE

County of HQ

United States

Next Earnings Date

06/23/26

Business Summary

FedEx operates a global integrated logistics network that moves parcels, freight, and time-sensitive shipments through air and ground infrastructure. The company generates cash by leveraging scale—high fixed-cost assets like aircraft, hubs, and sorting facilities—across massive shipment volumes, extracting margin through density and network optimization. Its moat is built on physical infrastructure, route density, brand reliability, and embedded enterprise relationships that smaller competitors cannot easily replicate. Cash flow expands when volumes rise because incremental packages move through an already-built network at attractive marginal profitability.

VALUATION

P/E

20

Market Cap ($M USD)

$89,258

Forward P/E

16.7

PEG

0.8

PRICE TO SALES

1

PRICE TO BOOK

3

EV / EBITDA

11.4

5-Year Average P/E

DIVIDEND

Yield

1.60%

Annual Payout

$5.80

Payout Ratio

31.10%

Consecutive Years of Dividend Growth

5

5-Year Dividend Growth Rate

17.40%

Financial Health & Profitability

Earnings Per Share

$18.21

Next Year EPS Growth Estimate

$22.35

Next Year Revenue Growth Estimate

4.80%

Return on Equity (ROE)

15.40%

Operating Margin

7.00%

Debt-to-Equity

1.3

Piotroski F-Score

8

Altman Z-Score

2.8

Return on Invested Capital (ROIC)

7.30%%

Current Ratio

1.3

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 20x earnings and 16.7x forward earnings with a PEG of 0.8, the market is pricing FDX as a low-growth cyclical despite clear earnings acceleration to $18.21 next year from $11.4. That multiple compression combined with a Price/Sales of 1 and Price/Book of 3 suggests modest expectations for a company generating a 15.40% operating margin. The Altman Z-Score of 2.8 places it in the gray zone—not distressed, but not fortress-grade either—while a Piotroski F-Score of 8 signals strong internal financial momentum. This looks like a classic GARP setup where improving earnings power is not fully reflected in valuation, but balance sheet quality prevents it from being a pure deep-value bargain.

AI Exposure / Tech Reliance

As an Integrated Freight & Logistics operator, FDX sits directly in the path of AI-driven supply chain optimization, automation, and route efficiency gains. The industry’s increasing reliance on data analytics and automated logistics networks structurally benefits scaled operators with existing infrastructure. Technological adaptation is not optional in this sector, and incumbents with capital and scale are positioned to extract productivity gains.

The Bull Case

A GARP investor buys FDX for the earnings inflection. EPS is $11.4 today with $18.21 expected next year, and the forward P/E of 16.7 against a PEG of 0.8 implies growth is being underappreciated. A Piotroski F-Score of 8 confirms operational and balance sheet strength, while a 15.40% operating margin demonstrates real pricing power in a capital-intensive business. ROIC at 7.30% combined with a 4.80% return on equity suggests improving capital efficiency with room to expand, especially given Sales Growth Next Year of $22.35. Add in a 1.3 yield and a Dividend 5-Year Avg of 5, and you have institutional-grade quality with shareholder return discipline at a non-demanding Price/Sales of 1.

The Bear Case

The bear case starts with leverage: Debt/Equity at 7.00% may look manageable in isolation, but in a cyclical freight business even modest leverage amplifies downturn risk. The Short % of Float at 17.40% is elevated and signals meaningful skepticism. Return on Equity at 4.80% and ROIC at 7.30% are not elite, suggesting capital intensity limits true compounding power. The Altman Z-Score of 2.8 keeps the company out of distress territory but firmly in the caution zone, and a Current Ratio of 1.3 provides only moderate liquidity buffer if volumes contract.

Market Sentiment & Smart Money

Short Interest %

1.20%

Analyst Consensus

1.77

Average Analyst Price Target

$403.58

Institutional Ownership %

80.30%

1-Year Beta

1.02

Insider Buying % (6 Mo)

7.40%%

Distance to 52-Week High

95.20%%

Distance to 52-Week Low

187.20%%