FedEx Freight Holding Company, Inc. (FDXF)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

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

As a value investor, I start with business quality. FedEx Freight Holding is an LTL carrier with 40,000 employees; scale can matter in freight, but this is still a cyclical, competitive business. The filed figures are deteriorating. In fiscal 2026, the year ended 2026-05-31, revenue was $8.8B, net income $655.0M, and diluted EPS $4.38. That compares with fiscal 2025, ended 2025-05-31, revenue $8.9B, net income $1.3B, and EPS $9.00, and with fiscal 2024, ended 2024-05-31, revenue $9.4B, net income $1.6B, and EPS $10.53. So sales are drifting lower and profits have fallen much faster. Financial health is mixed. FairStock calculations show ROE of 69.09%, but ROCE is only 5.67%, and the Piotroski F-Score is 1/9, which is poor. The Altman Z-Score of 5.12 suggests low bankruptcy risk by that measure, but P/B is 0.00 and D/E is N/A, so I would not overread the balance-sheet signals. Valuation is not cheap: at the close on 2026-10-13, price was $110.09, market cap $16.5B, and FairStock P/E 25.13 on FY2026 EPS. The Graham Number is $48.68, giving a margin of safety of -126.15%. The FairStock Score is 43/100, and the computed Lynch category is SLOW GROWER — Shrinking: profit -35.5% a year over 2 years, revenue -3.4%. Paying a premium multiple for shrinking profits is not Graham's idea of safety.

In plain English: FedEx Freight Holding Company moves smaller freight shipments for businesses. Its latest full-year sales slipped a little and profit fell sharply, so the business looks weaker than before. At the recent price, the shares look expensive compared with current earnings.

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

Sources (SEC EDGAR): 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