To The Moon

Earnings Calendar (23Jun25)

I am interested in the earnings announcements from Nike, Micron, FactSet and FedEx.

Let us look at the performance of FedEx.

The stock price has fallen 9.0% from a year ago. The Technical Analysis has recommended a “Strong Buy”. From the Analysts’ sentiment, there is a “Buy” recommendation. The price target of $272.16 suggests an upside of 20.41%.

Observations of FedEx’s performance:

• The revenue of FedEx has grown from $47.5 billion (2015) to $87.6 billion (2024).

• The 10-year median margin of gross profit is at 21.3%.

• The 10-year median margin of FCF is 2.0%, but there is a strong 15.7% 10-year CAGR.

• Operating profit has grown from $2.1 billion (2015) to $6.2 billion (2024).

• Earnings per share grew from $3.65 (2015) to $17.21 (2024).

• Dividends per share grew from $0.80 (2015) to $5.04 (2024).

• Valuation: The P/E ratio is 14.9, suggesting FedEx is reasonably valued relative to its earnings, aligning with its stable industry position.

• 10-Year Median Returns: The 10-year median return on assets (ROA) is 4.6%, return on equity (ROE) is 15.6%, and return on invested capital (ROIC) is 6.7%, indicating solid historical returns.

• Growth Trend: The EV/FCF ratio is 27.4, and the 10-year CAGR for FCF is approximately 15.7%, reflecting strong cash flow growth. The 10-year median FCF margin is not specified but implied to be positive.

• Capital Structure: The median debt/equity ratio is 3.2, and debt/assets is 0.4, indicating a leveraged but manageable balance sheet.

• Over the past 10 years, FedEx has demonstrated resilience and growth, with revenue increasing at a 6.8% CAGR and EPS at an 18.7% CAGR, driven by its leadership in global logistics and e-commerce delivery. Operating profits grew to $6.298 billion in 2024, with margins improving to 7.2%, reflecting operational efficiency. The company has consistently raised dividends (15.7% CAGR), and its P/E ratio of 14.9 suggests a stable valuation. Robust FCF growth (15.7% CAGR) and a manageable debt profile (debt/equity 3.2) support its financial flexibility. FedEx’s competitive advantages include its extensive global network, diversified services (Express, Ground, Freight), and adaptability to e-commerce trends. However, recent revenue declines (-2.7% in 2024) and EPS volatility indicate challenges from market saturation and economic headwinds, which may require strategic adjustments as of June 2025.

(Some of the above is taken from Grok.)

For the coming earnings, the EPS and Revenue forecast are $5.96 and $21.84 B.

FedEx has yet to make significant improvements to its top line, but has improved its profitability. Does this reflect the greater supply chain demand that is a result of the demand for goods and services?

Given the above considerations, FedEx can be an attractive option. Let us research before adding to our portfolio.

@TigerStars

$FedEx(FDX)$

$FactSet Research(FDS)$