FedEx Freight Holding Company, Inc. Fundamental Analysis (NYSE: FDXF)
FedEx Freight Holding Company, Inc. Fundamental Analysis (NYSE: FDXF)
FedEx Freight Holding Company, Inc. (NYSE: FDXF) shows weak financial fundamentals with a PE ratio of 35.45, profit margin of 6.28%, and ROE of 49.48%. The company generates $8.8B in annual revenue with weak year-over-year growth of -5.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 172.5/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze FDXF's fundamental strength across five key dimensions:
Efficiency Score
WeakFDXF struggles to generate sufficient returns from assets.
Valuation Score
ModerateFDXF shows balanced valuation metrics.
Growth Score
WeakFDXF faces weak or negative growth trends.
Financial Health Score
ExcellentFDXF maintains a strong and stable balance sheet.
Profitability Score
WeakFDXF struggles to sustain strong margins.
Key Financial Metrics
Is FDXF Expensive or Cheap?
P/E Ratio
FDXF trades at 35.45 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FDXF's PEG of -0.63 indicates potential undervaluation.
Price to Book
The market values FedEx Freight Holding Company, Inc. at -41.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.52 times EBITDA. This signals the market has high growth expectations.
How Well Does FDXF Make Money?
Net Profit Margin
For every $100 in sales, FedEx Freight Holding Company, Inc. keeps $6.28 as profit after all expenses.
Operating Margin
Core operations generate 6.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $49.48 in profit for every $100 of shareholder equity.
ROA
FedEx Freight Holding Company, Inc. generates $8.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
FedEx Freight Holding Company, Inc. generates limited operating cash flow of $166.82M, signaling weaker underlying cash strength.
Free Cash Flow
FedEx Freight Holding Company, Inc. generates weak or negative free cash flow of $-211.78M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.42 in free cash annually.
FCF Yield
FDXF converts -1.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
-41.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-12.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.49
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How FDXF Stacks Against Its Sector Peers
| Metric | FDXF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.45 | 30.00 | Worse (Expensive) |
| ROE | 49.48% | 1114.00% | Weak |
| Net Margin | 6.28% | -25183.00% (disorted) | Weak |
| Debt/Equity | -12.81 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 1.52 | 21.63 | Neutral |
| ROA | 8.02% | -1320911.00% (disorted) | Weak |
FDXF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews FedEx Freight Holding Company, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-7.88%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-28.66%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-8.66%
Industry Style: Cyclical, Value, Infrastructure
Declining