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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
35.7%
Sector: 8.9%
Dividend Analysis audit
GROWTH
1.22%
Trailing Yield
$1.22
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
28%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, EXPEDITORS INTERNATIONAL OF WASHINGTON INC (EXPD) receives a "Hold" rating with a composite score of 50.0/100, ranked #1200 out of 4446 stocks. Key factor scores: Quality 50/100, Value 61/100, Momentum 53/100. This is quantitative analysis only — not investment advice.
EXPEDITORS INTERNATIONAL OF WASHINGTON INC (EXPD) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does EXPEDITORS INTERNATIONAL OF WASHINGTON INC Do?
Expeditors International of Washington, Inc. provides logistics services in the Americas, North Asia, South Asia, Europe, the Middle East, Africa, and India. The company offers airfreight services, such as air freight consolidation and forwarding; ocean freight and ocean services, including ocean freight consolidation, direct ocean forwarding, and order management; customs brokerage, intra-continental ground transportation and delivery, and warehousing and distribution services; and customs clearance, purchase order management, vendor consolidation, time-definite transportation services, temperature-controlled transit, cargo insurance, specialized cargo monitoring and tracking, and other supply chain solutions. It also provides optimization, trade compliance, consulting, cargo security, and solutions. In addition, it acts as a freight consolidator or as an agent for the airline, which carries the shipment. Further, the company provides ancillary services that include preparation of shipping and customs documentation, packing, crating, insurance services, negotiation of letters of credit, and the preparation of documentation to comply with local export laws. Its customers include retailing and wholesaling, electronics, technology, and industrial and manufacturing companies. Expeditors International of Washington, Inc. was incorporated in 1979 and is headquartered in Seattle, Washington. EXPEDITORS INTERNATIONAL OF WASHINGTON INC (EXPD) is classified as a large-cap stock in the Industrials sector, specifically within the Transportation industry. The company is led by CEO Jeffrey S. Musser and employs approximately 19,900 people, headquartered in SEATTLE, Washington. With a market capitalization of $19.2B, EXPD is one of the prominent companies in the Industrials sector.
EXPEDITORS INTERNATIONAL OF WASHINGTON INC (EXPD) Stock Rating — Hold (April 2026)
As of April 2026, EXPEDITORS INTERNATIONAL OF WASHINGTON INC receives a Hold rating with a composite score of 50.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.EXPD ranks #1,200 out of 4,446 stocks in our coverage universe. Within the Industrials sector, EXPEDITORS INTERNATIONAL OF WASHINGTON INC ranks #194 of 752 stocks, placing it in the upper half of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
EXPD Stock Price and 52-Week Range
EXPEDITORS INTERNATIONAL OF WASHINGTON INC (EXPD) currently trades at $143.06. The stock lost $1.77 (1.2%) in the most recent trading session. The 52-week high for EXPD is $167.19, which means the stock is currently trading -14.4% from its annual peak. The 52-week low is $100.47, putting the stock 42.4% above its annual trough. Recent trading volume was 947K shares, suggesting relatively thin trading activity.
Is EXPD Overvalued or Undervalued? — Valuation Analysis
EXPEDITORS INTERNATIONAL OF WASHINGTON INC (EXPD) carries a value factor score of 61/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 22.85x, compared to the Industrials sector average of 28.33x — a discount of 19%. The price-to-book ratio stands at 8.15x, versus the sector average of 2.23x. The price-to-sales ratio is 1.71x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, EXPD trades at 17.42x EV/EBITDA, versus 5.70x for the sector.
Overall, EXPD's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
EXPEDITORS INTERNATIONAL OF WASHINGTON INC Profitability — ROE, Margins, and Quality Score
EXPEDITORS INTERNATIONAL OF WASHINGTON INC (EXPD) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 35.7%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 17.2% versus the sector average of 3.3%.
On a margin basis, EXPEDITORS INTERNATIONAL OF WASHINGTON INC reports gross margins of 32.6%, compared to 35.8% for the sector. The operating margin is 9.8% (sector: 6.2%). Net profit margin stands at 7.5%, versus 3.9% for the average Industrials stock. Revenue growth is running at 18.7% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
EXPD Debt, Balance Sheet, and Financial Health
EXPEDITORS INTERNATIONAL OF WASHINGTON INC has a debt-to-equity ratio of 108.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.81x, suggesting adequate working capital coverage. Cash and equivalents stand at $1.19B.
EXPD has a beta of 0.72, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for EXPEDITORS INTERNATIONAL OF WASHINGTON INC is 76/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
EXPEDITORS INTERNATIONAL OF WASHINGTON INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, EXPEDITORS INTERNATIONAL OF WASHINGTON INC reported revenue of $11.21B and earnings per share (EPS) of $5.97. Net income for the quarter was $841M. Gross margin was 32.6%. Operating income came in at $1.10B.
In FY 2025, EXPEDITORS INTERNATIONAL OF WASHINGTON INC reported revenue of $11.07B and earnings per share (EPS) of $5.97. Net income for the quarter was $812M. Gross margin was 33.1%. Revenue grew 4.4% year-over-year compared to FY 2024. Operating income came in at $1.05B.
In Q3 2025, EXPEDITORS INTERNATIONAL OF WASHINGTON INC reported revenue of $2.89B and earnings per share (EPS) of $1.65. Net income for the quarter was $223M. Gross margin was 33.0%. Revenue grew -3.5% year-over-year compared to Q3 2024. Operating income came in at $288M.
In Q2 2025, EXPEDITORS INTERNATIONAL OF WASHINGTON INC reported revenue of $2.65B and earnings per share (EPS) of $1.35. Net income for the quarter was $184M. Gross margin was 33.9%. Revenue grew 8.7% year-over-year compared to Q2 2024. Operating income came in at $248M.
Over the past 8 quarters, EXPEDITORS INTERNATIONAL OF WASHINGTON INC has demonstrated a growth trajectory, with revenue expanding from $2.44B to $11.21B. Investors analyzing EXPD stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
EXPD Dividend Yield and Income Analysis
EXPEDITORS INTERNATIONAL OF WASHINGTON INC (EXPD) currently pays a dividend yield of 1.2%. At this yield, a $10,000 investment in EXPD stock would generate approximately $$122.00 in annual dividend income. The net margin of 7.5% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
EXPD Momentum and Technical Analysis Profile
EXPEDITORS INTERNATIONAL OF WASHINGTON INC (EXPD) has a momentum factor score of 53/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 24/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
EXPD vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing EXPD against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full EXPD vs S&P 500 (SPY) comparison to assess how EXPEDITORS INTERNATIONAL OF WASHINGTON INC stacks up against the broader market across all factor dimensions.
EXPD Next Earnings Date
No upcoming earnings date has been announced for EXPEDITORS INTERNATIONAL OF WASHINGTON INC (EXPD) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy EXPD? — Investment Thesis Summary
EXPEDITORS INTERNATIONAL OF WASHINGTON INC presents a balanced picture with arguments on both sides. The value score of 61/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 76/100) reduces downside risk.
In summary, EXPEDITORS INTERNATIONAL OF WASHINGTON INC (EXPD) earns a Hold rating with a composite score of 50.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on EXPD stock.
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Institutional Research Dossier
EXPEDITORS INTERNATIONAL OF WASHINGTON INC (EXPD) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Expeditors International of Washington (EXPD) receives a Hold rating, reflecting a balanced view of its strong operational performance and a valuation that appears to be fairly priced. While the company demonstrates robust profitability and efficient operations within the logistics sector, its growth prospects and capital allocation strategies warrant careful consideration. The primary takeaway is that EXPD is a well-managed company with a solid track record, but its current valuation doesn't offer a compelling margin of safety, suggesting limited upside potential at current levels.
The company's impressive ROE and operating margins, significantly exceeding sector averages, highlight its operational efficiency. However, the relatively low Investment score in our quant model raises concerns about its future growth initiatives and capital deployment. Investors should closely monitor EXPD's ability to sustain its profitability and effectively allocate capital to drive future growth, as these factors will be crucial in determining its long-term performance and justifying a more bullish outlook.
Business Strategy & Overview
Expeditors International operates as a global logistics provider, offering a comprehensive suite of services including airfreight, ocean freight, customs brokerage, and warehousing and distribution. The company's revenue model is primarily based on fees and commissions earned from facilitating the movement of goods across international borders. Unlike asset-heavy competitors, Expeditors operates on an asset-light model, relying on partnerships with airlines, shipping lines, and trucking companies to execute its logistics operations. This strategy allows for greater flexibility and scalability, enabling the company to adapt quickly to changing market conditions and customer demands.
A key element of Expeditors' strategy is its decentralized organizational structure, which empowers local offices to make decisions and tailor solutions to meet the specific needs of their customers. This localized approach fosters strong customer relationships and allows the company to provide personalized service, differentiating it from larger, more centralized competitors. The company also invests heavily in technology to enhance its operational efficiency and provide customers with real-time visibility into their supply chains. This includes developing proprietary software platforms for managing shipments, tracking inventory, and automating customs clearance processes.
Expeditors' strategic positioning within the logistics industry is focused on providing value-added services and customized solutions to its customers. The company targets industries with complex supply chain requirements, such as electronics, technology, and industrial manufacturing. By offering a comprehensive range of services and leveraging its expertise in international trade regulations, Expeditors aims to become a trusted partner for its customers, helping them to optimize their supply chains and reduce costs. The company also focuses on expanding its global network and strengthening its relationships with key transportation providers to ensure reliable and efficient service delivery.
The company's product pipeline is not typically characterized by discrete 'products' in the traditional sense, but rather by continuous improvements and expansions of its service offerings and technological capabilities. This includes developing new solutions for specific industries, such as temperature-controlled transit for pharmaceuticals and specialized cargo monitoring for high-value goods. Expeditors also invests in training and development programs to ensure that its employees have the knowledge and skills necessary to provide high-quality service and adapt to evolving customer needs. The company's commitment to innovation and continuous improvement is essential for maintaining its competitive edge in the rapidly changing logistics industry.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
18.7%
Sector: 6.4%
+193% VS SCTR
Economic Moat Analysis
Expeditors International possesses a Narrow economic moat, primarily derived from switching costs and, to a lesser extent, intangible assets. The switching costs arise from the deep integration of Expeditors' services into its clients' supply chains. Changing logistics providers can be disruptive and costly, requiring significant time and effort to integrate new systems and processes. Clients who have come to rely on Expeditors' expertise in navigating complex international trade regulations and managing their supply chains are less likely to switch providers unless faced with a significant cost advantage or service failure.
The company's intangible assets, particularly its reputation for reliability and expertise, also contribute to its moat. Expeditors has built a strong brand name over the years, known for its high-quality service and its ability to handle complex logistics challenges. This reputation is a valuable asset that helps the company attract and retain customers. However, the logistics industry is highly competitive, and other providers can offer similar services, limiting the strength of Expeditors' brand advantage.
While Expeditors benefits from its asset-light business model, this also limits its ability to create a wider moat. Unlike asset-heavy competitors who own their own transportation infrastructure, Expeditors relies on partnerships with airlines, shipping lines, and trucking companies. This allows for greater flexibility and scalability, but it also means that the company does not have the same level of control over its operations. This lack of control can make it more difficult to differentiate its services and create a sustainable competitive advantage.
The company's network effects are relatively weak. While Expeditors benefits from its global network of offices and its relationships with key transportation providers, these networks are not exclusive and can be replicated by competitors. The value of Expeditors' network does not increase significantly as more customers join, limiting its ability to create a strong network effect moat. Therefore, while switching costs and intangible assets provide some competitive advantage, the overall strength of Expeditors' moat is limited by the competitive nature of the logistics industry and the company's asset-light business model.
Financial Health & Profitability
Expeditors International demonstrates solid financial health, characterized by consistent profitability and a strong balance sheet. The company's revenue has shown steady growth, with TTM revenue reaching $11.07 billion, reflecting an 18.7% increase compared to the sector average of 6.6%. This growth is indicative of the company's ability to capture market share and capitalize on favorable industry trends. Net income for the TTM period stands at $812.05 million, showcasing the company's ability to translate revenue growth into bottom-line profitability.
The company's margins are also noteworthy. Gross margin for the TTM period is 32.6%, slightly below the sector average of 35.8%. However, operating margin at 9.8% and net margin at 7.5% both significantly exceed the sector averages of 6.2% and 3.7%, respectively. This suggests that Expeditors is more efficient in managing its operating expenses and generating profits compared to its peers. The quarterly financial history reveals some fluctuation in margins, but overall, the company has maintained a consistent level of profitability.
Expeditors' balance sheet is robust, with $1.19 billion in total cash and no debt. This strong cash position provides the company with financial flexibility to pursue strategic acquisitions, invest in growth initiatives, and return capital to shareholders. The current ratio of 1.81 indicates that the company has ample liquid assets to cover its short-term liabilities. The absence of debt on the balance sheet is a significant advantage, reducing the company's financial risk and providing it with greater flexibility to navigate economic downturns.
The company's Return on Equity (ROE) of 35.7% is exceptionally high, significantly exceeding the sector average of 9.2%. This indicates that Expeditors is highly efficient in utilizing its equity to generate profits. However, the absence of Free Cash Flow data limits a complete assessment of the company's cash flow generation capabilities. Overall, Expeditors' financial health is strong, characterized by consistent profitability, a robust balance sheet, and efficient capital utilization. However, the lack of FCF data is a notable omission that warrants further investigation.
Valuation Assessment
Expeditors International's valuation presents a mixed picture. The company's P/E ratio of 24.5x is slightly below the sector average of 27.7x, suggesting that the stock may be undervalued relative to its peers. However, the EV/EBITDA ratio of 4.6x is also below the sector average of 5.7x, further reinforcing the notion that the stock may be undervalued. These metrics, considered in isolation, might suggest a buying opportunity.
However, a more nuanced analysis is required. While the P/E and EV/EBITDA ratios are below sector averages, it's crucial to consider Expeditors' growth prospects and its historical valuation. The company's revenue growth of 18.7% is significantly higher than the sector average of 6.6%, which could justify a higher valuation multiple. However, the Investment score of 26 in our quant model raises concerns about the sustainability of this growth rate. If the company's growth slows down, its current valuation may not be justified.
Furthermore, it's important to consider the cyclical nature of the logistics industry. Expeditors' earnings are highly sensitive to global trade volumes, which can fluctuate significantly depending on economic conditions. During periods of strong economic growth, the company's earnings can surge, leading to a lower P/E ratio. However, during economic downturns, the company's earnings can decline sharply, leading to a higher P/E ratio. Therefore, it's important to consider the company's earnings potential over a full economic cycle when assessing its valuation.
Given the company's strong profitability, robust balance sheet, and above-average growth rate, a fair valuation is warranted. However, the concerns about future growth prospects and the cyclical nature of the industry suggest that the stock is not significantly undervalued. The current valuation appears to be fairly priced, reflecting the company's strengths and weaknesses. Therefore, a Hold rating is appropriate, as the stock does not offer a compelling margin of safety at current levels.
Risk & Uncertainty
Expeditors International faces several specific risks that could impact its business and financial performance. One of the most significant risks is its exposure to global trade fluctuations. As a logistics provider, Expeditors' revenue is directly tied to the volume of international trade. Any slowdown in global trade, whether due to economic downturns, geopolitical tensions, or trade wars, could negatively impact the company's revenue and earnings. The cyclical nature of the logistics industry makes Expeditors particularly vulnerable to these fluctuations.
Another key risk is the intense competition within the logistics industry. Expeditors competes with a wide range of companies, including large multinational corporations, regional players, and smaller niche providers. The industry is characterized by low barriers to entry, which makes it difficult for companies to differentiate their services and maintain pricing power. Increased competition could lead to lower margins and reduced profitability for Expeditors.
Regulatory risks also pose a threat to Expeditors' business. The company operates in a highly regulated industry, subject to a complex web of international trade laws, customs regulations, and security requirements. Changes in these regulations, such as increased tariffs or stricter security measures, could increase the company's costs and disrupt its operations. Compliance with these regulations is also a significant challenge, and any failure to comply could result in fines, penalties, and reputational damage.
Finally, the company's reliance on third-party transportation providers is a potential risk. Expeditors does not own its own transportation infrastructure, relying instead on partnerships with airlines, shipping lines, and trucking companies. Any disruption to these partnerships, such as capacity constraints or service failures, could negatively impact the company's ability to deliver its services and meet its customers' needs. The company's asset-light business model, while providing flexibility, also exposes it to risks associated with its reliance on external providers.
Bulls Say / Bears Say
The Bull Case
BULL VIEWExpeditors' asset-light model allows for superior flexibility and scalability compared to asset-heavy competitors, enabling it to quickly adapt to changing market conditions and capitalize on growth opportunities.
BULL VIEWThe company's consistent profitability and strong balance sheet, with no debt and a large cash reserve, provide a solid foundation for future growth and shareholder returns.
The Bear Case
BEAR VIEWExpeditors' reliance on global trade makes it highly vulnerable to economic downturns and geopolitical instability, which could significantly impact its revenue and earnings.
BEAR VIEWThe company's relatively low Investment score suggests a lack of compelling growth initiatives and potential challenges in sustaining its historical growth rate.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score EXPD and 4,400+ other equities.
EXPEDITORS INTERNATIONAL OF WASHINGTON INC exhibits a 174% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
17.2%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
32.6%
Sector: 35.8%
Operating Margin
Core business profitability
9.8%
Sector: 6.2%
Net Margin
Bottom-line profitability
7.5%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $122 annually in dividends at the current trailing rate.
