Based on the key measurements obtained from FedEx's financial statements, FedEx is not in a good financial situation at this time. It has a very high probability of going through financial hardship in February. At this time, FedEx's Non Currrent Assets Other are fairly stable compared to the past year. Cash And Short Term Investments is likely to rise to about 6.7 B in 2026, whereas Inventory is likely to drop slightly above 377.7 M in 2026.
The financial analysis of FedEx is a critical element in measuring its lifeblood. Investors should not minimize FedEx's ability to pay suppliers or employees on time, ensuring interest payments are not accumulating.
Understanding current and past FedEx Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of FedEx's financial statements are interrelated, with each one affecting the others. For example, an increase in FedEx's assets may result in an increase in income on the income statement.
Please note, the imprecision that can be found in FedEx's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of FedEx. Check FedEx's Beneish M Score to see the likelihood of FedEx's management manipulating its earnings.
FedEx Stock Summary
FedEx competes with Canadian National, United Parcel, Cummins, United Rentals, and Norfolk Southern. FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. FedEx Corporation was founded in 1971 and is based in Memphis, Tennessee. Fedex Corp operates under Integrated Freight Logistics classification in the United States and is traded on New York Stock Exchange. It employs 345000 people.
An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket.
Cash flow analysis captures how much money flows into and out of FedEx. It measures of how well FedEx is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money FedEx brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money FedEx had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what FedEx has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
Comparative valuation techniques use various fundamental indicators to help in determining FedEx's current stock value. Our valuation model uses many indicators to compare FedEx value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across FedEx competition to find correlations between indicators driving FedEx's intrinsic value. More Info.
FedEx is rated below average in return on equity category among its peers. It also is rated below average in return on asset category among its peers reporting about 0.32 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for FedEx is roughly 3.13 . At this time, FedEx's Return On Equity is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the FedEx's earnings, one of the primary drivers of an investment's value.
FedEx's Earnings Breakdown by Geography
Most indicators from FedEx's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into FedEx current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in FedEx. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in small area income & poverty estimates.
Today, most investors in FedEx Stock are looking for potential investment opportunities by analyzing not only static indicators but also various FedEx's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of FedEx growth as a starting point in their analysis.
Along with financial statement analysis, the daily predictive indicators of FedEx help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of FedEx. We use our internally-developed statistical techniques to arrive at the intrinsic value of FedEx based on widely used predictive technical indicators. In general, we focus on analyzing FedEx Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build FedEx's daily price indicators and compare them against related drivers.
When running FedEx's price analysis, check to measure FedEx's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy FedEx is operating at the current time. Most of FedEx's value examination focuses on studying past and present price action to predict the probability of FedEx's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move FedEx's price. Additionally, you may evaluate how the addition of FedEx to your portfolios can decrease your overall portfolio volatility.