FedEx Corporation (FDX) Stock

FedEx Corporation trades at a P/E ratio of 13.95, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 13.14 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.06 indicates reasonable value when growth is considered.

With a beta of 1.21, FedEx Corporation is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 2.02 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

FedEx Corporation achieves a profit margin of 4.65%, meaning it retains $4.65 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 7.64% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 15.00% and ROA at 4.88%, the company achieves moderate returns on invested capital.

FedEx Corporation's revenue grew by 13.90% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 13.30% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against INTEGRATED FREIGHT & LOGISTICS industry averages for proper context.

FedEx Corporation offers a dividend yield of 2.38%, paying $5.66 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 8, 2025.

The dividend sustainability can be assessed through the payout ratio - FedEx Corporation pays $5.66 per share in dividends against earnings of $16.96 per share, resulting in a payout ratio of 33.37%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Oct 1, 2025.

FedEx Corporation has a market capitalization of $56.1B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 235.96M shares outstanding, the company's ownership is relatively concentrated. As a participant in the INTEGRATED FREIGHT & LOGISTICS industry, it competes with other firms in this sector.

FedEx Corporation's book value per share is $117.67, while the current stock price is $249.93, resulting in a price-to-book (P/B) ratio of 2.12. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

30 analysts cover FDX with 70% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $264.82 implies 6.0% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:4 Strong Buy, 17 Buy, 7 Hold, 2 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.