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FedEx Corporation (FDX) Stock

FedEx Corporation Stock Details, Movements and Public Alerts

FedEx Corporation (FDX): The $70B Logistics Giant Transforming Through Network Integration

When packages absolutely, positively have to be there overnight—or any time customers specify—FedEx's integrated air-ground network delivers. CEO Raj Subramaniam, who became CEO in 2022 after 30+ years at FedEx, inherited a company needing transformation after years of operating Express, Ground, and Freight as separate networks with redundant infrastructure. The DRIVE initiative represents the most significant operational overhaul in company history: consolidating separate networks, reducing sort facilities, and integrating delivery routes. Trading at 13x forward earnings after significant underperformance versus UPS, FedEx offers value investors exposure to e-commerce logistics growth with substantial self-help potential—if management executes on promised $4B savings while maintaining service levels.

52-Week Range

$288.42 - $190.84

-2.49% from high · +47.36% from low

Avg Daily Volume

1,842,099

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

16.66

Near market average

Forward P/E

15.72

Earnings expected to grow

PEG Ratio

1.27

Reasonably valued

Price to Book

2.42

EV/EBITDA

9.34

EPS (TTM)

$17.09

Price to Sales

0.76

Beta

1.33

Similar volatility to market

How is FDX valued relative to its earnings and growth?
FedEx Corporation trades at a P/E ratio of 16.66, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 15.72 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.27 indicates reasonable value when growth is considered.
What is FDX's risk profile compared to the market?
With a beta of 1.33, 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 2.42 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

4.65%

Operating Margin

7.64%

EBITDA

$11.12B

Return on Equity

15.00%

Return on Assets

4.88%

Revenue Growth (YoY)

13.90%

Earnings Growth (YoY)

-13.30%

How profitable and efficient is FDX's business model?
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.
What are FDX's recent growth trends?
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.

Dividend Information

Dividend Per Share

$5.66

Dividend Yield

1.99%

Ex-Dividend Date

Dec 15, 2025

Dividend Date

Jan 6, 2026

What dividend income can investors expect from FDX?
FedEx Corporation offers a dividend yield of 1.99%, paying $5.66 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Dec 15, 2025.
How reliable is FDX's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - FedEx Corporation pays $5.66 per share in dividends against earnings of $17.09 per share, resulting in a payout ratio of 33.12%. 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 Jan 6, 2026.

Company Size & Market

Market Cap

$67.2B

Revenue (TTM)

$88.59B

Revenue/Share (TTM)

$370.67

Shares Outstanding

235.96M

Book Value/Share

$117.67

Asset Type

Common Stock

What is FDX's market capitalization and position?
FedEx Corporation has a market capitalization of $67.2B, 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.
How does FDX's price compare to its book value?
FedEx Corporation's book value per share is $117.67, while the current stock price is $281.23, resulting in a price-to-book (P/B) ratio of 2.39. 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.

Analyst Ratings

Analyst Target Price

$280.04

0.42% downside potential

Analyst Recommendations

Strong Buy

3

Buy

16

Hold

10

Sell

1

Strong Sell

0

How reliable are analyst predictions for FDX?
30 analysts cover FDX with 63% 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 $280.04 implies -0.4% downside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on FDX?
Current analyst recommendations:3 Strong Buy, 16 Buy, 10 Hold, 1 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.

Fundamentals last updated: Dec 13, 2025, 08:27 AM

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FedEx Corporation (FDX) Stock Analysis 2025: Logistics Investment Guide

The Logistics Transformation Story

FedEx revolutionized logistics when Fred Smith founded the company in 1971 with the hub-and-spoke model that made overnight delivery economically viable. The company built separate networks—Express for air freight, Ground for package delivery, Freight for LTL trucking—each operating independently with distinct management, facilities, and delivery personnel. This structure made sense historically but created inefficiency as e-commerce growth demanded integrated solutions. CEO Raj Subramaniam, promoted after running marketing and serving as president, recognized that competing with UPS's integrated network required fundamental change.

The DRIVE transformation addresses structural inefficiency through Network 2.0—consolidating Express and Ground pickup and delivery operations, reducing sort facilities, and optimizing delivery routes. FedEx operates 5,500+ facilities globally; rationalization opportunities are substantial. The company targets $4B in permanent cost savings by FY26, representing margin improvement potential that could transform profitability. CEO Raj Subramaniam describes this as 'one FedEx' integration that founder Fred Smith (who stepped down as Executive Chairman in 2024) long resisted due to network independence beliefs.

Business Model & Competitive Position

FedEx generates revenue across four segments: Express (air freight, international), Ground (residential and commercial package delivery), Freight (less-than-truckload), and Services (logistics, retail). Express remains largest by revenue but Ground drives growth from e-commerce volumes. The customer base spans retail shippers (e-commerce), commercial accounts (B2B logistics), and enterprise relationships (supply chain solutions). Geographic mix approximates 70% domestic, 30% international with significant exposure to Asia-US trade lanes.

Competitive advantages derive from network scale and air fleet. FedEx operates 680+ aircraft—the world's largest cargo fleet—enabling overnight delivery that ground-based competitors cannot match. The Ground network's independent contractor model provides flexibility though faces legal and regulatory challenges. International presence through owned networks (unlike UPS's postal partnerships in some markets) ensures service consistency. However, Amazon's logistics buildout threatens both volumes (as Amazon internalizes delivery) and pricing (as excess capacity enters markets). UPS's integrated operations demonstrate efficiency FedEx historically lacked.

Financial Performance

  • •Revenue: $88B annually with modest growth from volume recovery and yield management
  • •Margins: 6-7% operating margins versus 10%+ target; transformation execution critical
  • •FCF: $4-5B annually supporting buybacks, dividends, and capex requirements
  • •Capex: $5B+ annually for aircraft, facilities, and technology; capital intensity challenge
  • •Capital Returns: $2B+ annual buybacks reducing share count; $5.00/share dividend (1.8% yield)
  • •Valuation: 13x forward P/E at discount to UPS (17x) reflecting execution uncertainty

Growth Catalysts

  • •DRIVE Execution: $4B cost savings flowing through margins as network integration progresses
  • •Yield Improvement: Pricing rationalization and surcharge optimization improving revenue quality
  • •International Recovery: Asia-US trade lane volumes recovering from inventory destocking
  • •Healthcare Logistics: Specialized temperature-controlled and time-sensitive healthcare delivery growth
  • •Freight Spinoff Potential: Separation of Freight segment could unlock value and strategic focus

Risks & Challenges

  • •Execution Risk: DRIVE transformation requires flawless execution; service disruptions damage customer relationships
  • •Amazon Competition: Amazon Logistics internalizing delivery volumes and adding excess market capacity
  • •Economic Sensitivity: Package volumes correlate with consumer spending and industrial production
  • •Labor Costs: Wage inflation and contractor model challenges pressure margins
  • •Capital Intensity: $5B+ annual capex requirements limit free cash flow flexibility

Competitive Landscape

UPS operates the integrated network model that FedEx now pursues, with superior margins (10%+ vs. FedEx 6-7%) and comparable scale. UPS's union workforce provides consistency while creating cost structure differences versus FedEx's contractor model. Amazon Logistics emerged as existential threat—Amazon now delivers 60%+ of own packages while selling logistics services to third-party merchants. Regional carriers (OnTrac, Spee-Dee) capture local volumes at lower costs. USPS partnership economics continue evolving with postal service financial pressures.

CEO Raj Subramaniam argues that FedEx's air network, international capabilities, and B2B relationships differentiate from Amazon's retail-focused logistics. The DRIVE transformation aims to match UPS efficiency while maintaining FedEx service advantages. Success would justify valuation re-rating toward UPS multiples; failure could pressure margins further as competitors capitalize on service disruptions. For investors, FedEx represents asymmetric value opportunity if transformation executes, versus continued underperformance if execution falters.

Who Is This Stock Suitable For?

Perfect For

  • ✓Value investors seeking logistics exposure at discount to peers
  • ✓Turnaround investors betting on DRIVE transformation success
  • ✓Contrarian buyers comfortable with near-term execution uncertainty
  • ✓Income seekers attracted to 1.8% dividend yield with buyback support

Less Suitable For

  • ✗Conservative investors uncomfortable with transformation execution risk
  • ✗Those requiring immediate margin improvement evidence
  • ✗Investors concerned about Amazon logistics competition
  • ✗Quality-focused buyers preferring UPS's proven execution

Investment Thesis

FedEx offers value-priced logistics exposure with substantial self-help upside through DRIVE transformation. CEO Raj Subramaniam's $4B cost savings target would transform margins from industry-lagging 6-7% toward UPS-comparable 10%+. The 13x forward P/E versus UPS's 17x reflects execution skepticism that creates opportunity for patient investors. The integrated air-ground network, international capabilities, and B2B relationships provide differentiation despite Amazon competition.

However, transformation execution remains unproven. FedEx has disappointed on operational improvement before, and service disruptions during network integration could damage customer relationships. Amazon's logistics buildout threatens volumes regardless of FedEx efficiency gains. The capital-intensive business model limits free cash flow even in optimistic scenarios. For investors with 2-3 year horizons who believe DRIVE execution will succeed, FedEx offers compelling risk/reward. Those requiring proven results should wait for margin improvement evidence before committing capital.

Conclusion

FedEx is a SPECULATIVE BUY for value-oriented investors with conviction in DRIVE transformation execution. The 13x forward P/E discount to UPS (17x) creates upside if margins approach peer levels. Wait for evidence of sustained margin improvement before adding aggressively. Conservative investors should prefer UPS's proven execution track record despite premium valuation.
Bull Case
$350 (28% upside) - DRIVE exceeds savings target, margins reach 10%+, multiple re-rates to 16x
Base Case
$295 (8% upside) - $3B savings achieved, margins improve to 8%, valuation stable
Bear Case
$210 (23% downside) - Transformation disruptions, Amazon pressure, margins flat

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