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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
12.6%
Sector: 8.9%
Dividend Analysis audit
INCOME
2.06%
Trailing Yield
$2.06
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
49%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, FEDEX CORP (FDX) receives a "Hold" rating with a composite score of 52.3/100, ranked #217 out of 4446 stocks. Key factor scores: Quality 50/100, Value 45/100, Momentum 68/100. This is quantitative analysis only — not investment advice.
FEDEX CORP (FDX) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FEDEX CORP Do?
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 e-commerce 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, 2021, this segment had approximately 29,000 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 function 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 an array of document and business services, and retail access to its customers for its package transportation businesses. The company was founded in 1971 and is based in Memphis, Tennessee. FEDEX CORP (FDX) is classified as a large-cap stock in the Industrials sector, specifically within the Transportation industry. The company is led by CEO Rajesh Subramaniam and employs approximately 249,000 people, headquartered in Memphis, Tennessee. With a market capitalization of $85.7B, FDX is one of the prominent companies in the Industrials sector.
FEDEX CORP (FDX) Stock Rating — Hold (April 2026)
As of April 2026, FEDEX CORP receives a Hold rating with a composite score of 52.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FDX ranks #217 out of 4,446 stocks in our coverage universe. Within the Industrials sector, FEDEX CORP ranks #40 of 752 stocks, placing it in the top 10% 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%).
FDX Stock Price and 52-Week Range
FEDEX CORP (FDX) currently trades at $374.08. The stock lost $2.92 (0.8%) in the most recent trading session. The 52-week high for FDX is $392.86, which means the stock is currently trading -4.8% from its annual peak. The 52-week low is $194.29, putting the stock 92.5% above its annual trough. Recent trading volume was 1.1M shares, reflecting moderate market activity.
Is FDX Overvalued or Undervalued? — Valuation Analysis
FEDEX CORP (FDX) carries a value factor score of 45/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 23.79x, compared to the Industrials sector average of 28.33x — a discount of 16%. The price-to-book ratio stands at 2.99x, versus the sector average of 2.23x. The price-to-sales ratio is 0.97x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, FDX trades at 17.12x EV/EBITDA, versus 5.70x for the sector.
Overall, FDX'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.
FEDEX CORP Profitability — ROE, Margins, and Quality Score
FEDEX CORP (FDX) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 12.6%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 4.0% versus the sector average of 3.3%.
On a margin basis, FEDEX CORP reports gross margins of 37.7%, compared to 35.8% for the sector. The operating margin is 5.7% (sector: 6.2%). Net profit margin stands at 4.1%, versus 3.9% for the average Industrials stock. Revenue growth is running at 9.3% 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.
FDX Debt, Balance Sheet, and Financial Health
FEDEX CORP has a debt-to-equity ratio of 218.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.47x, suggesting adequate working capital coverage.
FDX has a beta of 0.92, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for FEDEX CORP is 71/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
FEDEX CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, FEDEX CORP reported revenue of $91.87B and earnings per share (EPS) of $4.46. Net income for the quarter was $3.75B. Operating income came in at $5.20B.
In Q3 2026, FEDEX CORP reported revenue of $24.00B and earnings per share (EPS) of $4.46. Net income for the quarter was $1.06B. Revenue grew 8.3% year-over-year compared to Q3 2025. Operating income came in at $1.35B.
In Q2 2026, FEDEX CORP reported revenue of $23.47B and earnings per share (EPS) of $4.07. Net income for the quarter was $956M. Revenue grew 6.8% year-over-year compared to Q2 2025. Operating income came in at $1.38B.
In Q1 2026, FEDEX CORP reported revenue of $22.24B and earnings per share (EPS) of $3.48. Net income for the quarter was $824M. Revenue grew 3.1% year-over-year compared to Q1 2025. Operating income came in at $1.19B.
Over the past 8 quarters, FEDEX CORP has demonstrated a growth trajectory, with revenue expanding from $21.58B to $91.87B. Investors analyzing FDX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FDX Dividend Yield and Income Analysis
FEDEX CORP (FDX) currently pays a dividend yield of 2.1%. At this yield, a $10,000 investment in FDX stock would generate approximately $$206.00 in annual dividend income.
FDX Momentum and Technical Analysis Profile
FEDEX CORP (FDX) has a momentum factor score of 68/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 29/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 36/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
FDX vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing FDX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FDX vs S&P 500 (SPY) comparison to assess how FEDEX CORP stacks up against the broader market across all factor dimensions.
FDX Next Earnings Date
No upcoming earnings date has been announced for FEDEX CORP (FDX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FDX? — Investment Thesis Summary
FEDEX CORP presents a balanced picture with arguments on both sides. Price momentum is positive at 68/100, suggesting the trend favors buyers. Low volatility (stability score 71/100) reduces downside risk.
In summary, FEDEX CORP (FDX) earns a Hold rating with a composite score of 52.3/100 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 FDX stock.
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Institutional Research Dossier
FEDEX CORP (FDX) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
FedEx Corporation (FDX) is a leading global transportation and logistics company with a strong competitive position in the express, ground, and freight segments. Our proprietary BCR Quant Model rates FedEx as a 4-star Buy with a Composite Score of 51.6/100, primarily driven by its high Momentum and Stability scores. The key takeaway is that FedEx's diversified business model, strong brand recognition, and strategic investments position it well to capitalize on the growing e-commerce and B2B logistics markets, though its high valuation and potential operational challenges warrant close monitoring.
Business Strategy & Overview
FedEx operates a diversified portfolio of transportation and logistics services, including express delivery, ground shipping, freight transportation, and supply chain management solutions. The company's FedEx Express segment is its largest and most prominent business, offering time-critical transportation services in over 220 countries and territories. The FedEx Ground segment provides day-definite delivery to businesses and residences, while the FedEx Freight segment offers less-than-truckload freight transportation services. FedEx's breadth of services, global footprint, and technological capabilities allow it to serve a wide range of customers, from small businesses to large multinational corporations.
FedEx has strategically positioned itself to capitalize on the rapid growth of e-commerce by investing in its ground and freight networks, expanding its last-mile delivery capabilities, and enhancing its digital and automation tools. The company's FedEx Services segment provides critical sales, marketing, and back-office support functions to its transportation businesses. FedEx's diverse revenue streams, balanced between business-to-business (B2B) and business-to-consumer (B2C) services, help mitigate the cyclicality inherent in the transportation industry.
The company faces intense competition from other global logistics providers, such as United Parcel Service (UPS) and DHL, as well as emerging players in the e-commerce delivery space. However, FedEx's long-standing brand reputation, extensive infrastructure, and continuous investments in technology and innovation have allowed it to maintain a strong competitive position in the market.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
9.3%
Sector: 6.4%
+45% VS SCTR
Economic Moat Analysis
FedEx's economic moat can be characterized as narrow to wide, depending on the specific segment. In the express delivery market, FedEx benefits from strong brand recognition, a large global network, and high switching costs for customers, particularly for time-sensitive shipments. The company's extensive fleet of aircraft, ground vehicles, and sorting facilities, along with its sophisticated logistics software and data analytics capabilities, represent significant barriers to entry for potential competitors. FedEx's ability to provide reliable, on-time delivery services across a vast geographic footprint is a key competitive advantage.
The ground and freight segments, however, face more intense competition and have lower barriers to entry. While FedEx has built a sizable network of sortation centers and pickup/delivery routes, its ground and freight services are more commoditized, and customers have lower switching costs. The company's investments in automation, optimization, and technology are aimed at improving efficiencies and maintaining its competitive edge in these segments.
FedEx's integrated supply chain solutions and specialty transportation services, offered through its Corporate, Other, and Eliminations segment, also provide the company with a source of differentiation and higher-margin revenue streams. The company's investments in digital platforms, data analytics, and innovative technologies, such as autonomous vehicles and drone delivery, could further strengthen its competitive positioning in the long run.
Financial Health & Profitability
FedEx has exhibited a mixed financial performance in recent years. The company's revenue growth has been solid, averaging 9.3% over the past three fiscal years, outpacing the industry average of 6.6%. However, FedEx's profitability metrics have lagged its peers, with a gross margin of 37.7% and an operating margin of 5.7%, compared to the sector averages of 35.8% and 6.2%, respectively.
The company's return on equity (ROE) of 12.6% is higher than the industry average of 9.2%, indicating effective capital allocation and asset utilization. However, FedEx's balance sheet carries a relatively high level of debt, with a debt-to-equity ratio of 218%, significantly higher than the sector average of 70%.
In terms of quarterly financial performance, FedEx has experienced some volatility, with net income fluctuating between $741 million and $1.08 billion over the past three fiscal years. The company's operating margins have also shown variability, ranging from 4.8% to 6.8% during the same period. These fluctuations can be attributed to various factors, including changes in fuel prices, labor costs, and the impact of the COVID-19 pandemic on global supply chains.
Valuation Assessment
FedEx's valuation metrics are currently trading at a significant premium to its industry peers. The company's P/E ratio of 80.5x is more than double the sector average of 27.7x, and its EV/EBITDA multiple of 15.7x is also significantly higher than the industry's 5.7x. These valuation multiples suggest that the market is pricing in robust future growth and profitability for FedEx.
While the company's strong brand, diversified business model, and strategic investments support a premium valuation, the current multiples appear stretched, especially given the potential operational challenges and macroeconomic headwinds facing the transportation and logistics industry. The lack of available free cash flow data also makes it difficult to assess the company's true valuation based on discounted cash flow analysis.
Nonetheless, FedEx's stable revenue and earnings growth, combined with its market leadership position, warrant a premium valuation compared to its peers. Investors will need to carefully monitor the company's ability to maintain its operational efficiency, manage cost pressures, and capitalize on emerging opportunities in the e-commerce and B2B logistics markets to justify the current stock price.
Risk & Uncertainty
FedEx faces several idiosyncratic risks that could potentially undermine its thesis, including intense competition, regulatory changes, and operational challenges. The global logistics industry is highly competitive, with FedEx competing not only with established players like UPS and DHL but also emerging e-commerce delivery providers. This competitive landscape puts pressure on pricing and margins, which could erode the company's profitability.
Regulatory changes, such as restrictions on air freight operations or changes in labor laws, could also impact FedEx's business model and cost structure. The company's heavy reliance on its fleet of aircraft and ground vehicles exposes it to fluctuations in fuel prices, which could squeeze its margins if not effectively managed.
Additionally, FedEx's operational efficiency and customer service levels could be disrupted by supply chain disruptions, labor shortages, or technology failures, particularly given the company's extensive network and high-volume operations. These operational challenges could lead to increased costs, delayed deliveries, and a deterioration of the company's reputation and customer relationships.
Bulls Say / Bears Say
The Bull Case
BULL VIEWFedEx's diversified business model, global reach, and strong brand recognition position it as a market leader in the transportation and logistics industry, allowing it to capture a significant share of the growing e-commerce and B2B logistics markets.
BULL VIEWThe company's strategic investments in technology, automation, and last-mile delivery capabilities will enable it to drive operational efficiencies, enhance customer service, and maintain its competitive edge over the long term.
BULL VIEWFedEx's stable revenue growth, high profitability metrics, and solid cash flow generation justify the current premium valuation, as the market is pricing in the company's ability to sustain its market leadership and capitalize on emerging opportunities.
The Bear Case
BEAR VIEWFedEx's high valuation multiples are not supported by its operational performance and financial metrics, which have underperformed its industry peers, raising concerns about the sustainability of its current stock price.
BEAR VIEWThe company's heavy reliance on its extensive fleet of aircraft and ground vehicles, as well as its labor-intensive operations, expose it to significant cost pressures from rising fuel prices and potential labor shortages, which could erode its profitability.
BEAR VIEWIntense competition from both established players and emerging e-commerce delivery providers, coupled with the potential for regulatory changes, could disrupt FedEx's business model and market share, undermining its long-term growth prospects.
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 FDX and 4,400+ other equities.
FEDEX CORP exhibits a 78% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
4.0%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
37.7%
Sector: 35.8%
Operating Margin
Core business profitability
5.7%
Sector: 6.2%
Net Margin
Bottom-line profitability
4.1%
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 $206 annually in dividends at the current trailing rate.
