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FedEx (FDX)
NYSE:FDX
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FedEx
(NYSE:FDX)
Select Model
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Rating:74Outperform
Price Target:
$260.00
▲(9.33% Upside)
FedEx's overall score is driven by its solid financial performance and attractive valuation, despite mixed technical signals. The company's strong cash flow and reduced leverage enhance financial stability, while its P/E ratio suggests potential undervaluation. Challenges in the global trade environment and operational efficiency improvements remain areas to watch.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for FedEx's services, particularly in the U.S. market, supporting long-term business expansion.
Cost Management
Effective cost management enhances profitability and operational efficiency, providing a competitive edge and financial resilience.
Network Optimization
Network optimization efforts improve service delivery and cost efficiency, strengthening FedEx's market position and long-term growth potential.
Negative Factors
Global Trade Challenges
Global trade challenges can significantly impact revenue, particularly from key markets, posing risks to sustained growth and profitability.
FedEx Freight Pressure
Ongoing pressure in the FedEx Freight segment can affect overall profitability and limit growth opportunities in the freight market.
Higher Operating Costs
Rising operating costs can erode profit margins and reduce financial flexibility, challenging FedEx's ability to maintain competitive pricing.
FedEx (FDX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.11B
Dividend Yield2.38%
Average Volume (3M)2.14M
Price to Earnings (P/E)13.9
Beta (1Y)0.93
Revenue Growth1.14%
EPS Growth4.99%
CountryUS
Employees306,000
SectorIndustrials
Sector Strength72
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)3.83
Shares Outstanding235,955,460
10 Day Avg. Volume3,435,553
30 Day Avg. Volume2,144,271
Financial Highlights & Ratios
PEG Ratio-4.71
Price to Book (P/B)1.89
Price to Sales (P/S)0.60
P/FCF Ratio17.78
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue0.98
Enterprise Value/Gross Profit4.25
Enterprise Value/Ebitda8.55
Forecast
1Y Price Target
$267.80Price Target Upside12.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
FedEx Business Overview & Revenue Model
Company DescriptionFedEx 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 MoneyFedEx generates revenue primarily through its various operational segments. The FedEx Express segment contributes a significant portion of revenue by providing time-sensitive courier services, including overnight and international shipping. FedEx Ground focuses on cost-effective parcel delivery services, catering to e-commerce customers and businesses. The FedEx Freight segment offers less-than-truckload (LTL) freight services, which is another vital revenue stream. Additionally, FedEx Logistics provides supply chain solutions and integrated services, enhancing overall revenue. The company also benefits from strategic partnerships with retailers and e-commerce platforms, further boosting its earnings. Seasonal spikes in demand, particularly during holiday periods, also contribute to increased revenues, as well as growth in online shopping trends driving demand for logistics services.
FedEx Key Performance Indicators (KPIs)
Any
Federal Express Revenue Breakdown
Details revenue specifically from the Federal Express segment, offering a focused view on this key division's contribution to overall performance.
Details revenue specifically from the Federal Express segment, offering a focused view on this key division's contribution to overall performance.
Data provided by:
Main Street Data
Main Street DataFedEx Earnings Call Summary
Earnings Call Date:Sep 18, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Dec 18, 2025
Earnings Call Sentiment Neutral
FedEx reported solid revenue growth and transformation-related savings, coupled with strong domestic package performance and successful cost management. However, challenges persist in the global trade environment, particularly with significant headwinds from China, and continued pressure on the FedEx Freight segment. The expiration of the U.S. Postal Service contract and higher operating costs also pose challenges. While positive developments are noted, particularly in Europe and U.S. market share gains, the significant global trade headwinds and freight pressures balance the outlook.Q1-2026 Updates
Positive Updates
Solid Revenue Growth
FedEx reported a 3% year-over-year increase in revenue for Q1, driven by U.S. domestic package services.
Record Transformation-Related Savings
The company achieved $200 million in transformation-related savings and plans for $1 billion in savings in FY26.
Strong U.S. Domestic Package Performance
FedEx Express (FEC) revenue grew by 4%, with adjusted operating income up 17% and adjusted operating margin expanding by 70 basis points.
Successful Cost Management Strategies
FedEx continues to reduce structural costs and improve operational efficiency, including optimizing 70 additional U.S. stations.
Positive Developments in Europe
Year-over-year improvements in European labor and productivity metrics, and best new business quarter in Europe in the last 2 years.
Negative Updates
Challenges in Global Trade Environment
FedEx faces a $1 billion headwind due to the global trade environment, predominantly impacting top-line revenue, especially from China to U.S. lanes.
Pressure on FedEx Freight Segment
FedEx Freight continues to experience pressure due to industrial economic weakness, with a decline in average daily shipments and margin contraction.
Impact of U.S. Postal Service Contract Expiration
The expiration of the U.S. Postal Service contract resulted in a $130 million headwind for Q1.
Higher Operating Costs
FedEx anticipates a $2.1 billion base expense increase and $300 million in direct trade-related expenses.
Company Guidance
In the FedEx First Quarter Fiscal 2026 Earnings Call, the company reported a 3% year-over-year increase in revenue, driven by strong U.S. domestic package services, and achieved $200 million in transformation-related savings. Adjusted operating income grew by 7%, with Federal Express Corporation (FEC) seeing a 17% increase in adjusted operating income and a 70 basis point expansion in adjusted operating margin. Despite a challenging global trade environment and the expiration of the U.S. Postal Service contract, FedEx maintained strong yield management and commercial execution. The company forecasts full-year adjusted earnings per diluted share to fall between $17.20 and $19, with expectations of a 4% to 6% revenue growth. Notably, the company has made significant progress in its Network 2.0 rollout, optimizing around 70 additional U.S. stations, and advancing its spin-off of FedEx Freight, which is on track for June 2026.FedEx Financial Statement Overview
Summary
FedEx demonstrates a solid financial position with improving revenue growth and strong cash flow generation. The reduction in leverage enhances financial stability, while profitability metrics indicate room for operational efficiency improvements.Income Statement
FedEx shows a strong gross profit margin of 23.03% TTM, indicating efficient cost management. The net profit margin of 4.65% TTM is modest, reflecting stable profitability. Revenue growth is positive at 0.76% TTM, rebounding from previous declines, suggesting a recovery trajectory. However, the EBIT margin of 6.62% TTM and EBITDA margin of 11.44% TTM indicate room for improvement in operational efficiency.78
Positive
Balance Sheet
The debt-to-equity ratio has improved significantly to 0.18 TTM, showcasing a stronger balance sheet and reduced leverage risk. Return on equity is at 9.26% TTM, indicating moderate profitability for shareholders. The equity ratio of 74.17% TTM reflects a solid capital structure, enhancing financial stability.72
Positive
Cash Flow
FedEx's free cash flow growth rate of 22.58% TTM highlights robust cash generation capabilities. The operating cash flow to net income ratio of 0.49 TTM and free cash flow to net income ratio of 0.48 TTM suggest efficient cash conversion, although there is potential for further improvement.75
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 88.59B | 87.93B | 87.69B | 90.16B | 93.51B | 83.79B |
| Gross Profit | 20.41B | 19.00B | 18.95B | 19.17B | 20.17B | 17.79B |
| EBITDA | 10.14B | 10.49B | 10.87B | 10.23B | 9.55B | 11.26B |
| Net Income | 4.12B | 4.09B | 4.33B | 3.97B | 3.83B | 5.23B |
Balance Sheet | ||||||
| Total Assets | 88.42B | 87.63B | 87.01B | 87.11B | 85.99B | 82.78B |
| Cash, Cash Equivalents and Short-Term Investments | 6.17B | 5.57B | 6.50B | 6.86B | 6.90B | 7.09B |
| Total Debt | 37.91B | 37.42B | 37.72B | 38.33B | 37.19B | 36.46B |
| Total Liabilities | 60.65B | 59.55B | 59.42B | 61.05B | 61.05B | 58.61B |
| Stockholders Equity | 27.77B | 28.07B | 27.58B | 26.09B | 24.94B | 24.17B |
Cash Flow | ||||||
| Free Cash Flow | 3.65B | 2.98B | 3.14B | 2.64B | 3.07B | 4.25B |
| Operating Cash Flow | 7.57B | 7.04B | 8.31B | 8.81B | 9.83B | 10.13B |
| Investing Cash Flow | -3.91B | -4.09B | -5.20B | -6.17B | -6.82B | -6.01B |
| Financing Cash Flow | -3.51B | -4.02B | -3.43B | -2.60B | -3.02B | -2.09B |
FedEx Technical Analysis
Positive
237.82
Price Trends
228.20
Positive
225.85
Positive
236.47
Positive
Market Momentum
2.05
Negative
63.54
Neutral
85.12
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 237.82 is above the 20-day moving average (MA) of 228.52, above the 50-day MA of 228.20, and above the 200-day MA of 236.47, indicating a bullish trend. The MACD of 2.05 indicates Negative momentum. The RSI at 63.54 is Neutral, neither overbought nor oversold. The STOCH value of 85.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDX.
FedEx Risk Analysis
FedEx disclosed 1 risk factors in its most recent earnings report. FedEx reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FedEx Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $56.11B | 13.90 | 14.98% | 2.38% | 1.14% | 4.99% | |
72 Outperform | $16.54B | 19.88 | 38.85% | 1.23% | 23.70% | 31.33% | |
72 Outperform | $15.02B | 13.21 | 14.21% | 3.63% | 14.40% | 2.41% | |
69 Neutral | $70.96B | 12.45 | 34.59% | 7.82% | 0.94% | 9.62% | |
69 Neutral | $15.57B | 30.01 | 29.94% | 1.88% | -2.55% | 59.07% | |
67 Neutral | $14.84B | 43.60 | 19.37% | ― | -0.11% | -4.28% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
FDX
FedEx
237.82
-29.58
-11.06%
CHRW
CH Robinson
131.81
24.01
22.27%
EXPD
Expeditors International
121.84
-7.88
-6.07%
XPO
XPO
126.05
18.54
17.24%
UPS
United Parcel
83.72
-44.49
-34.70%
ZTO
ZTO Express
19.31
-4.99
-20.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.