FedEx (FDX) AI Stock Analysis

• Market Cap: $55.79B
• Dividend Yield: 2.36%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.81
• Revenue Growth: 0.27%
• EPS Growth: -2.64%
• Country: US
• Employees: 306,000
• Sector: Industrials
• Sector Strength: 93
• Industry: Integrated Freight & Logistics
• EPS (TTM): 6.07
• Shares Outstanding: 235,899,100
• 10 Day Avg. Volume: 1,701,221
• 30 Day Avg. Volume: 2,277,181
• PEG Ratio: 2.30
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.62
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 3.23
• Enterprise Value/Ebitda: 1.66
• 1Y Price Target: $269.21
• Price Target Upside: 10.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 73 Outperform
• Price Target: $264.00 ▲(8.55%Upside)

FedEx demonstrates robust financial health and strategic cost management, reflected in a strong financial performance score. Technical analysis shows positive momentum, supporting a stable outlook. Valuation indicates potential undervaluation, but market caution is evident due to moderate revenue growth and external challenges. The earnings call emphasized strategic achievements despite headwinds, and recent corporate events bolster financial flexibility.

Positive Factors

Cost Savings

Network 2.0 appears to be steadily progressing and is expected to deliver additional savings, which should position FedEx Corporation to defend earnings and leverage a B2B recovery.

Earnings Performance

FDX FY 4Q EPS came in ahead of estimates at an adjusted $6.07, translating to better margin performance in both segments.

Revenue Growth

FedEx confirmed rising core parcel prices remain strong and will be a big part of driving a positive spread in revenue over cost.

Negative Factors

Economic Uncertainty

The outlook remains cloudy with limited visibility due to tariff volatility and policy uncertainty, making it difficult for FedEx to project demand.

Guidance Concerns

Management declined to give FY26 guidance due to economic uncertainty, which is seen as a negative surprise.

Tariff Volatility

Tariffs remain an overhang and a source of volatility that could yield a wide range of earnings outcomes.

FedEx Business Overview & Revenue Model

Company Description

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The company's FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; time-critical transportation services; and cross-border enablement, technology, and e-commerce transportation solutions. Its FedEx Ground segment provides day-certain delivery services to businesses and residences. The company's FedEx Freight segment offers less-than-truckload freight transportation services. As of May 31, 2022, this segment had approximately 30,000 vehicles and 400 service centers. Its FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services. The company's Corporate, Other and Eliminations segment offers integrated supply chain management solutions, specialty transportation, customs brokerage, and global ocean and air freight forwarding services; and document and business services, as well as retail access to its customers for its package transportation businesses. FedEx Corporation was founded in 1971 and is based in Memphis, Tennessee.

How the Company Makes Money

FedEx makes money primarily through its diversified logistics and transportation services. Its revenue model is driven by the following key streams: FedEx Express, which offers time-definite delivery to over 220 countries and territories; FedEx Ground, which provides small-package ground delivery services; FedEx Freight, which handles less-than-truckload (LTL) freight services across North America; and FedEx Services, which supports sales, marketing, information technology, and customer service functions. Additionally, FedEx benefits from strategic partnerships and collaborations with e-commerce retailers and other businesses, which boost its shipping volumes. The company’s earnings are influenced by factors like fuel surcharges, delivery volumes, and global economic conditions, as well as investments in network infrastructure and technology to enhance operational efficiency.

FedEx Financial Statement Overview

Summary

FedEx demonstrates strong financial health with stable income, efficient cash flow, and a solid balance sheet. While revenue growth faces challenges, profitability and cash generation remain robust. Current debt levels warrant caution, but overall outlook is positive, supported by operational efficiency and effective capital management.

Income Statement

FedEx has shown a stable performance with consistent revenue and profitability over the years. The gross profit margin for the most recent year is approximately 26.5%, which is a solid indicator of operational efficiency. However, the net profit margin has slightly decreased to 4.7%, reflecting some cost pressures. Revenue growth has been modest, with a slight decrease in the latest annual period, indicating challenges in maintaining top-line growth. EBIT and EBITDA margins have been stable, supporting profitability resilience.

Balance Sheet

The balance sheet reflects a moderate level of financial leverage with a debt-to-equity ratio of approximately 1.33, which is manageable but indicates reliance on debt financing. The return on equity stands at 14.6%, showing effective use of shareholder funds. Equity ratio is about 32%, suggesting a balanced approach to financing through equity. Stability is evident, but there is room for improvement in reducing debt levels to enhance financial flexibility.

Cash Flow

FedEx's cash flow situation is robust, with positive operating cash flow consistently exceeding net income, indicating strong cash generation. The free cash flow to net income ratio is favorable, affirming efficient capital expenditure management. Despite a slight decline in free cash flow growth recently, the overall cash flow situation remains strong, providing a cushion for future investments or debt repayment.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	87.93B	87.69B	90.16B	93.51B	83.96B
Gross Profit	23.26B	18.95B	19.17B	20.17B	23.73B
EBITDA	10.13B	10.87B	10.60B	9.77B	11.75B
Net Income	4.09B	4.33B	3.97B	3.83B	5.23B
Balance Sheet
Total Assets	87.66B	87.01B	87.11B	85.99B	82.78B
Cash, Cash Equivalents and Short-Term Investments	5.50B	6.50B	6.82B	6.90B	7.09B
Total Debt	37.42B	37.72B	38.33B	37.19B	36.46B
Total Liabilities	59.59B	59.42B	61.02B	61.05B	58.61B
Stockholders Equity	28.07B	27.58B	26.09B	24.94B	24.17B
Cash Flow
Free Cash Flow	2.98B	3.14B	2.64B	3.07B	4.25B
Operating Cash Flow	7.04B	8.31B	8.81B	9.83B	10.13B
Investing Cash Flow	-4.09B	-5.20B	-6.17B	-6.82B	-6.01B
Financing Cash Flow	-4.02B	-3.43B	-2.60B	-3.02B	-2.09B

FedEx Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 243.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDX, the sentiment is Positive. The current price of 243.2 is above the 20-day moving average (MA) of 233.97, above the 50-day MA of 226.53, and below the 200-day MA of 248.31, indicating a neutral trend. The MACD of 2.66 indicates Negative momentum. The RSI at 63.77 is Neutral, neither overbought nor oversold. The STOCH value of 88.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDX.

FedEx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZTO	79 Outperform	$15.87B	12.40	15.68%	0.20%	13.41%	10.00%
UPS	74 Outperform	$87.67B	15.10	35.96%	6.32%	1.30%	-0.76%
FDX	73 Outperform	$55.79B	14.14	14.68%	2.36%	0.27%	-2.64%
EXPD	72 Outperform	$16.00B	19.16	37.70%	1.29%	24.07%	27.40%
CHRW	70 Neutral	$12.25B	24.03	32.11%	2.40%	-0.22%	65.52%
JBHT	67 Neutral	$14.85B	27.23	14.33%	1.16%	-2.24%	-5.43%
Sector *	61 Neutral	C$6.54B	7.73	2.76%	2.57%	6.48%	-23.55%

FedEx Corporate Events

FedEx Secures €850 Million in New Notes Issuance

On July 23, 2025, FedEx Corporation and its subsidiaries entered into an underwriting agreement with major financial institutions for the issuance and sale of €500 million in 3.500% Notes due 2032 and €350 million in 4.125% Notes due 2037. This strategic financial move is expected to impact FedEx’s operations by potentially enhancing its liquidity and financial flexibility, which could strengthen its market positioning and provide benefits to its stakeholders.

The most recent analyst rating on (FDX) stock is a Hold with a $300.00 price target. To see the full list of analyst forecasts on FedEx stock, see the FDX Stock Forecast page.

FedEx Appoints New Chairman Following Founder’s Passing

On June 21, 2025, FedEx announced the passing of its founder and Executive Chairman, Frederick W. Smith. In response, the Board elected R. Brad Martin as the new Chairman, effective June 23, 2025, and reduced the Board size to twelve members. The company expressed deep condolences and gratitude for Smith’s contributions to FedEx and beyond.

The most recent analyst rating on (FDX) stock is a Hold with a $300.00 price target. To see the full list of analyst forecasts on FedEx stock, see the FDX Stock Forecast page.