FedEx Corporation (FDX)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-Graham investor, I start with business quality. FedEx is a 300,000-employee integrated freight and logistics network, an essential artery for commerce. Scale and route density are real advantages. The latest filed quarter, fiscal Q3 2026 (quarter ended 2026-02-28), showed revenue of $24.0B, net income of $1.1B, and diluted EPS of $4.41, versus fiscal Q3 2025 (quarter ended 2025-02-28) at $22.2B, $909.0M, and $3.76. For fiscal year 2026 (ended 2026-05-31), revenue was $94.7B, net income $4.4B, and diluted EPS $18.55; fiscal year 2025 (ended 2025-05-31) was $87.9B, $4.1B, and $16.81. That is progress, but the Lynch category is SLOW GROWER - Shrinking: profit -3.3% a year over five years and revenue 2.4%. Financial health is mixed. TTM free cash flow is $5.1B, a 7.4% FCF yield - attractive cash generation. But debt/equity is 1.36, Altman Z-score is 1.67, ROCE is 5.01%, and ROE is 14.85% (FairStock calculations). Piotroski is a decent 7/9. At the 2026-10-13 close of $290.59, FairStock's P/E is 15.67, P/B 2.20, EV/EBITDA 8.84, and dividend yield 1.61%. The Graham Number is $234.60, implying a -23.87% margin of safety, so price sits above that conservative value. Growth trajectory matters: revenue rose from $87.7B in fiscal year 2024 (ended 2024-05-31) to $94.7B in fiscal year 2026 (ended 2026-05-31), and EPS from $17.21 to $18.55, but net income only edged from $4.3B to $4.4B. The moat is scale and network, not pricing power. I would need a wider discount and evidence that returns on capital improve before calling this a compelling value.

In plain English: FedEx moves packages and provides transportation, e-commerce, and business services around the world. The business earns decent profits and generates cash, but profit growth over the long run has been weak and it carries a lot of debt. At the recent price, the stock looks a bit expensive compared with its profits and assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-02-28) · fiscal Q2 2026 10-Q (period ended 2025-11-30) · fiscal Q1 2026 10-Q (period ended 2025-08-31) · fiscal Q3 2025 10-Q (period ended 2025-02-28) · FY2026 10-K (period ended 2026-05-31) · FY2025 10-K (period ended 2025-05-31) · FY2024 10-K (period ended 2024-05-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer