One-glance verdict
Within fair range
$288.14 our estimate vs market $318.84
Wall Street consensus: $356.62 (23.8% higher than our fair-value estimate)
11% above our estimate
Fundamentals snapshot
FedEx Corporation
FDX · NYQ · Industrials · Integrated Freight & Logistics
Current price
$318.84
52-week range
$204.42 - $345.37
Market cap
$74.67B
Balance sheet
Watch
6.83x Adequate
Net debt $22.65B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Free cash flow was positive in 7/10 years.
- Reward Trades at 17.2x P/E vs peer median 23.2x (25.8% cheaper).
- Risk Stock trades 33.3% above its 5-year average P/E.
- Risk Operating margin compressed from 5.9% to 5.0% over 3 years.
What this company does
FedEx Corporation
FedEx is like a giant mailman for businesses, delivering packages and offering services like printing and managing complex delivery networks called supply chains (the whole process of how goods get from their origin to you). Most of their money comes from shipping packages, which matters because it shows how much businesses and people are buying and selling things.
How the company got here
FedEx Corporation was founded in 1971 by Frederick Wallace Smith and is headquartered in Memphis, Tennessee. It began as an air-ground express delivery service, aiming to provide reliable, time-definite delivery. Over the decades, FedEx has grown through strategic acquisitions and organic expansion, becoming a global logistics powerhouse. A key turning point was the acquisition of Caliber System in 1998, which included RPS (later rebranded as FedEx Ground), significantly expanding its ground delivery capabilities. The company has continuously adapted to market changes, including the rise of e-commerce, by investing in technology and expanding its service offerings to meet evolving customer needs.
What it actually does
FedEx Corporation is a global leader in transportation, e-commerce, and business services. Essentially, it's a company that moves things for people and businesses, from small packages to large freight, across the world. Think of it as the backbone for many online shopping deliveries and business shipments. They offer a wide range of services, including express air delivery, ground package delivery, freight transportation, and even business services like printing and shipping management. Their extensive network of aircraft, vehicles, and facilities ensures that items can be delivered quickly and reliably to over 220 countries and territories.
FedEx Express
FedEx Express is the company's original and largest business segment, responsible for its time-definite air-delivery services. This segment handles the rapid transport of packages and freight globally, utilizing a vast fleet of aircraft and a sophisticated hub-and-spoke system, with its main hub in Memphis, Tennessee. It's the part of FedEx that customers often think of for urgent or international shipments, aiming for overnight or two-day delivery to most destinations. This segment is crucial for FedEx's global reach and is a significant contributor to its overall revenue.
FedEx Ground
FedEx Ground focuses on reliable, day-definite delivery of packages and ጥቅages (packages that are typically boxes weighing less than 150 pounds) across North America, primarily within the United States and Canada. This segment serves both businesses and residential customers, offering services like FedEx Home Delivery for residential packages and FedEx Ground Economy for lower-cost, consolidated deliveries. It operates a large network of distribution hubs and relies on a mix of company-owned vehicles and independent contractors to manage its extensive ground operations. FedEx Ground is a major revenue generator, handling millions of packages daily.
FedEx Freight
FedEx Freight specializes in less-than-truckload (LTL) freight services, which means it transports smaller shipments from multiple customers on the same truck. This segment is designed for businesses that need to ship palletized freight or multiple boxes that don't fill an entire truck. FedEx Freight operates a network of service centers across North America, providing regional next-day and second-day delivery. While it represents a smaller portion of FedEx's overall revenue compared to Express and Ground, it is known for its profitability and operational efficiency in the freight market.
FedEx Services
FedEx Services acts as the support arm for the other operating companies within FedEx Corporation. It provides essential functions such as sales, marketing, information technology, customer service, and administrative support. This segment ensures that the various delivery businesses have the necessary infrastructure and resources to operate smoothly and efficiently. While it doesn't directly handle package delivery, it plays a vital role in the overall success and coordination of the FedEx brand.
What management is betting on now
FedEx is undergoing a significant transformation, aiming to become a single, fully integrated air-ground network under the FedEx brand. This strategy, known as "One FedEx," involves consolidating its various operating companies to streamline operations, improve efficiency, and enhance customer experience. Management is focused on optimizing its network, leveraging technology for better tracking and data analytics, and driving profitability across all segments. The company is also strategically separating its freight business to allow each entity to focus on its core strengths and unlock greater value.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$1.01B
FY2025 Q4
$1.05B
FY2026 Q2
$580.00M
FY2026 Q3
$1.04B
FY2026 Q4
$2.88B
FY2027 Q2
$1.46B
Revenue
$22.86B
Net income
$290.00M
Diluted EPS
1.21
Operating cash flow
$2.50B
Free cash flow
$1.46B
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Sources
Revenue
$7.79B
Net income
$5.04B
Diluted EPS
—
Operating cash flow
—
Free cash flow
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Revenue
$26.82B
Net income
$1.50B
Diluted EPS
6.21
Operating cash flow
$4.98B
Free cash flow
$2.88B
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Sources
Revenue
$24.00B
Net income
$1.06B
Diluted EPS
4.41
Operating cash flow
$1.99B
Free cash flow
$1.04B
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Sources
Revenue
$20.43B
Net income
$920.00M
Diluted EPS
3.89
Operating cash flow
$772.00M
Free cash flow
$580.00M
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Sources
Revenue
$6.46B
Net income
$217.00M
Diluted EPS
—
Operating cash flow
—
Free cash flow
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Sources
Revenue
$22.22B
Net income
$1.65B
Diluted EPS
6.81
Operating cash flow
$2.52B
Free cash flow
$1.05B
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Sources
Revenue
$22.16B
Net income
$909.00M
Diluted EPS
3.76
Operating cash flow
$2.01B
Free cash flow
$1.01B
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Sources
Is it cheap or expensive?
Fair value $288.14 vs current price $318.84
Wall Street consensus is the average analyst price target: $356.62 (23.8% higher than our fair-value estimate).
Our most-likely fair value is $288.14 a share — about 9.6% away from today's price of $318.84, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $22.6B. Interest coverage 6.8x.
Net debt
$22.65B
Interest coverage
6.83x
FedEx Corporation's profit covers its interest bill about 6.8 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
FDX
BASELINE
FedEx Corporation
Total debt $34.13B Interest coverage 6.83x This is the baseline the peer rows are being compared against.
Total debt $30.52B Interest coverage 7.74x +13% vs FDX Has roughly the same debt cushion as FDX.
Total debt $31.51B Interest coverage 4.80x -30% vs FDX Carries about 1.4x less debt cushion than FDX.
Total debt $3.97B Interest coverage 3.33x -51% vs FDX Carries about 2.1x less debt cushion than FDX.
Total debt $575.84M Interest coverage 219.28x +3,112% vs FDX Carries about 32.1x more debt cushion than FDX.
Total debt $2.15B Interest coverage 10.96x +61% vs FDX Carries about 1.6x more debt cushion than FDX.
What you should know
The case for and against FDX
3 Rewards
2 Risks
Rewards
-
Free cash flow was positive in 7/10 years.
-
Trades at 17.2x P/E vs peer median 23.2x (25.8% cheaper).
-
Dividend yield is 1.6% with 25-year payout history.
Risks
-
Stock trades 33.3% above its 5-year average P/E.
-
Operating margin compressed from 5.9% to 5.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.19x
Forward P/E
15.23x
P/B
2.16x
P/S
0.79x
EV/EBITDA
8.22x
PEG ratio
1.89x
Profitability
How much profit each dollar creates
Gross margin
27.3%
Operating margin
5.0%
Net margin
4.7%
ROE
14.8%
ROA
5.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.99x
Current ratio
1.48x
Quick ratio
1.39x
Total debt
$34.13B
Total cash
$11.48B
Growth
How the business has been compounding
Revenue TTM
$81.46B
Revenue 5Y CAGR
0.3%
EPS TTM
18.55
EPS 5Y CAGR
6.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$10.65B
Free CF TTM
$5.12B
FCF margin
6.3%
Dividend
Shareholder payout
Yield
1.6%
Payout ratio
31.3%
Last ex-div date
2026-09-14