Recent News
On February 12, 2026, FedEx held an Investor Day outlining strategic priorities: growth in high-margin verticals, scaling digital and AI capabilities, Network 2.0 transformation, and ongoing DRIVE efficiency gains; management reiterated a planned tax-free spin-off of FedEx Freight targeted for June 1, 2026. In early February 2026 FedEx announced AI-enabled post-purchase solutions and a partnership to launch predictive retail insights. On February 23–24, 2026, FedEx filed suit in the U.S. Court of International Trade seeking refunds of tariffs invalidated by a recent Supreme Court ruling.
Technical Analysis
ADX at 57.83 indicates a very strong trend; that strength suggests momentum has been substantial and price remains influenced by directional forces, which affects the near-term price bias relative to WMDST’s valuation of under-valued.
DI+ at 38.21 is decreasing, which reads as bearish directional pressure; that weakening of upward direction raises the risk of near-term momentum erosion versus the valuation case for margin expansion.
DI- at 6.37 is decreasing, which reads as reduced downside pressure; declining DI- implies sellers have less directional conviction even as DI+ softens, supporting a scenario of consolidation rather than a sustained reversal.
MACD sits at 18.47 with a signal line at 17.94 and a trend labeled as peak & reversal. The peak-and-reversal character signals bearish momentum, even though MACD currently sits marginally above its signal line, which technically registers a recent bullish crossover; the mixed signal favors watching momentum deterioration as a trigger for near-term mean reversion.
MRO at 27.32 registers positive, indicating price sits above a model target and is likely to face downward pressure; that reading introduces mean-reversion risk that could cap upside despite WMDST’s under-valued assessment.
RSI at 73.59 with a peak-and-reversal reads as overbought and momentum-peaking; elevated RSI increases the odds of a short-term pullback or sideways consolidation that would align price action with fundamental improvements over several weeks.
Price relationships support bullish medium-term bias: close at $382.59 sits well above the 200-day average of $258.58 and above the 50-day average of $325.00, while the 12-day EMA shows an increasing short-term trend. Price trades near the upper Bollinger band (upper 1x at $385.42), leaving limited immediate upside without a momentum re-acceleration. SuperTrend lower at $366.02 and Ichimoku Kijun at $345.45 serve as nearer structural supports. Reported trading volume of 494 contrasts with a 10-day average of 1,270,684, indicating below-average turnover that reduces conviction behind recent intraday moves.
Fundamental Analysis
Profitability: EBIT equals $1,621,000,000 with an EBIT margin of 6.91%, up 18.37% quarter-over-quarter and up 10.11% year-over-year. The EBIT margin sits above the industry peer mean of 5.72% and slightly below the industry peer median of 7.16%, reflecting material progress on cost and network efficiencies highlighted at Investor Day.
Earnings and cash flow: Reported EPS actual $4.82 versus estimate $4.11, producing an EPS surprise of 17.28%. Operating income and net income improved, supported by operating cash flow of $1,951,000,000 and free cash flow of $1,194,000,000. Free cash flow yield equals 1.96%, marginally above the industry peer mean of 1.60%, indicating modestly stronger cash conversion on a relative basis.
Revenue and margins: Total revenue $23,469,000,000 and gross margin 21.87%, with gross margin up 4.90% year-over-year and 3.63% quarter-over-quarter. Reported revenue growth (general figure) equals 5.51%; quarter-over-quarter revenue growth reads 49.99% while the provided year-over-year revenue growth figure reports 206.29%, suggesting substantial sequential variation tied to timing and the company’s seasonal pattern.
Leverage and coverage: Total debt $37,766,000,000 with debt-to-equity 1.34x and debt-to-EBITDA roughly 14.04x; interest coverage stands at 16.89x. Debt-to-equity sits below the industry peer mean of 1.61x, while debt-to-EBITDA and absolute net debt of $14.625 billion remain elevated relative to cash flows, underscoring capital structure risk despite healthy interest coverage.
Valuation multiples: Trailing P/E at 53.7x and forward P/E near 47.1x reflect premium multiple expectations; price-to-book at 2.16x sits well below the industry peer mean of 8.04x, and enterprise multiple at 34.23x sits below the industry peer mean of 74.45x. WMDST values the stock as under-valued, a view supported by improving margins, meaningful EPS surprise, and positive free-cash-flow dynamics, while leverage and high trailing multiples keep absolute valuation metrics elevated.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-11-30 |
| REPORT DATE: | 2025-12-18 |
| NEXT REPORT DATE: | 2026-03-19 |
| CASH FLOW | Begin Period Cash Flow | $ 6.2 B |
| Operating Cash Flow | $ 2.0 B | |
| Capital Expenditures | $ -757.00 M | |
| Change In Working Capital | $ -1.18 B | |
| Dividends Paid | $ -342.00 M | |
| Cash Flow Delta | $ 404.0 M | |
| End Period Cash Flow | $ 6.6 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 23.5 B | |
| Forward Revenue | $ 7.8 B | |
| COSTS | ||
| Cost Of Revenue | $ 18.3 B | |
| Depreciation | $ 1.1 B | |
| Depreciation and Amortization | $ 1.1 B | |
| Research and Development | — | |
| Total Operating Expenses | $ 21.8 B | |
| PROFITABILITY | ||
| Gross Profit | $ 5.1 B | |
| EBITDA | $ 2.7 B | |
| EBIT | $ 1.6 B | |
| Operating Income | $ 1.6 B | |
| Interest Income | $ -135.00 M | |
| Interest Expense | — | |
| Net Interest Income | $ -135.00 M | |
| Income Before Tax | $ 1.3 B | |
| Tax Provision | $ 333.0 M | |
| Tax Rate | 25.8 % | |
| Net Income | $ 956.0 M | |
| Net Income From Continuing Operations | $ 956.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 4.11 | |
| EPS Actual | $ 4.82 | |
| EPS Difference | $ 0.71 | |
| EPS Surprise | 17.275 % | |
| Forward EPS | $ 5.42 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 89.2 B | |
| Intangible Assets | $ 6.6 B | |
| Net Tangible Assets | $ 21.5 B | |
| Total Current Assets | $ 20.7 B | |
| Cash and Short-Term Investments | $ 6.6 B | |
| Cash | $ 6.6 B | |
| Net Receivables | $ 12.2 B | |
| Inventory | $ 631.0 M | |
| Long-Term Investments | $ 4.4 B | |
| LIABILITIES | ||
| Accounts Payable | $ 4.7 B | |
| Short-Term Debt | $ 901.0 M | |
| Total Current Liabilities | $ 16.2 B | |
| Net Debt | $ 14.6 B | |
| Total Debt | $ 37.8 B | |
| Total Liabilities | $ 61.0 B | |
| EQUITY | ||
| Total Equity | $ 28.1 B | |
| Retained Earnings | $ 42.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 119.74 | |
| Shares Outstanding | 235.000 M | |
| Revenue Per-Share | $ 99.87 | |
| VALUATION | Market Capitalization | $ 60.9 B |
| Enterprise Value | $ 92.1 B | |
| Enterprise Multiple | 34.234 | |
| Enterprise Multiple QoQ | -4.1 % | |
| Enterprise Multiple YoY | 32.631 % | |
| Enterprise Multiple IPRWA | high: 111.108 median: 75.058 mean: 74.449 FDX: 34.234 low: 2.046 |
|
| EV/R | 3.922 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.169 | |
| Asset To Liability | 1.461 | |
| Debt To Capital | 0.573 | |
| Debt To Assets | 0.423 | |
| Debt To Assets QoQ | -1.222 % | |
| Debt To Assets YoY | 6010.823 % | |
| Debt To Assets IPRWA | high: 0.554 median: 0.499 FDX: 0.423 mean: 0.396 low: 0.033 |
|
| Debt To Equity | 1.342 | |
| Debt To Equity QoQ | -1.676 % | |
| Debt To Equity YoY | 5899.464 % | |
| Debt To Equity IPRWA | high: 2.844 median: 2.198 mean: 1.609 FDX: 1.342 low: 0.043 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.163 | |
| Price To Book QoQ | 12.103 % | |
| Price To Book YoY | -15.148 % | |
| Price To Book IPRWA | high: 10.221 median: 9.141 mean: 8.042 FDX: 2.163 low: 0.232 |
|
| Price To Earnings (P/E) | 53.73 | |
| Price To Earnings QoQ | -9.372 % | |
| Price To Earnings YoY | -22.289 % | |
| Price To Earnings IPRWA | high: 219.55 mean: 119.897 FDX: 53.73 median: 53.302 low: -54.552 |
|
| PE/G Ratio | 2.079 | |
| Price To Sales (P/S) | 2.593 | |
| Price To Sales QoQ | 7.663 % | |
| Price To Sales YoY | -15.536 % | |
| Price To Sales IPRWA | high: 8.459 mean: 5.566 median: 4.821 FDX: 2.593 low: 0.815 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 47.12 | |
| Forward PE/G | 1.823 | |
| Forward P/S | 7.985 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 4.519 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.264 | |
| Asset Turnover Ratio QoQ | 4.586 % | |
| Asset Turnover Ratio YoY | 3.586 % | |
| Asset Turnover Ratio IPRWA | high: 0.761 mean: 0.46 FDX: 0.264 median: 0.245 low: 0.008 |
|
| Receivables Turnover | 1.983 | |
| Receivables Turnover Ratio QoQ | 1.982 % | |
| Receivables Turnover Ratio YoY | -5.013 % | |
| Receivables Turnover Ratio IPRWA | high: 2.301 FDX: 1.983 median: 1.797 mean: 1.717 low: 1.171 |
|
| Inventory Turnover | 29.696 | |
| Inventory Turnover Ratio QoQ | 2.031 % | |
| Inventory Turnover Ratio YoY | 5.116 % | |
| Inventory Turnover Ratio IPRWA | FDX: 29.696 high: 13.044 median: 5.965 mean: 5.753 low: 1.04 |
|
| Days Sales Outstanding (DSO) | 46.025 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 26.132 | |
| Cash Conversion Cycle Days QoQ | -9.379 % | |
| Cash Conversion Cycle Days YoY | -2.26 % | |
| Cash Conversion Cycle Days IPRWA | high: 116.203 FDX: 26.132 mean: 25.971 median: 25.694 low: -61.123 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 5.287 | |
| CapEx To Revenue | -0.032 | |
| CapEx To Depreciation | -0.709 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 48.4 B | |
| Net Invested Capital | $ 49.3 B | |
| Invested Capital | $ 49.3 B | |
| Net Tangible Assets | $ 21.5 B | |
| Net Working Capital | $ 4.4 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.405 | |
| Current Ratio | 1.274 | |
| Current Ratio QoQ | 2.224 % | |
| Current Ratio YoY | 3.449 % | |
| Current Ratio IPRWA | high: 1.592 FDX: 1.274 mean: 1.233 median: 1.048 low: 0.89 |
|
| Quick Ratio | 1.235 | |
| Quick Ratio QoQ | 2.295 % | |
| Quick Ratio YoY | 3.924 % | |
| Quick Ratio IPRWA | high: 3.382 FDX: 1.235 mean: 0.784 median: 0.689 low: 0.339 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 14.045 | |
| Cost Of Debt | 0.188 % | |
| Interest Coverage Ratio | 16.885 | |
| Interest Coverage Ratio QoQ | 24.884 % | |
| Interest Coverage Ratio YoY | 17.634 % | |
| Interest Coverage Ratio IPRWA | FDX: 16.885 high: 12.233 mean: 6.282 median: 2.77 low: -7.955 |
|
| Operating Cash Flow Ratio | 0.111 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 23.104 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.795 | |
| Dividend Payout Ratio | 0.358 | |
| Dividend Rate | $ 1.46 | |
| Dividend Yield | 0.006 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.865 % | |
| Revenue Growth | 5.507 % | |
| Revenue Growth QoQ | 4999.074 % | |
| Revenue Growth YoY | 206.285 % | |
| Revenue Growth IPRWA | high: 10.882 % FDX: 5.507 % mean: -3.684 % median: -4.737 % low: -5.42 % |
|
| Earnings Growth | 25.849 % | |
| Earnings Growth QoQ | -170.046 % | |
| Earnings Growth YoY | 106.792 % | |
| Earnings Growth IPRWA | high: 237.5 % FDX: 25.849 % mean: 1.617 % median: -53.165 % low: -75.342 % |
|
| MARGINS | ||
| Gross Margin | 21.867 % | |
| Gross Margin QoQ | 3.625 % | |
| Gross Margin YoY | 4.903 % | |
| Gross Margin IPRWA | high: 30.222 % FDX: 21.867 % mean: 11.68 % median: 11.586 % low: 8.179 % |
|
| EBIT Margin | 6.907 % | |
| EBIT Margin QoQ | 18.372 % | |
| EBIT Margin YoY | 10.107 % | |
| EBIT Margin IPRWA | high: 8.692 % median: 7.161 % FDX: 6.907 % mean: 5.718 % low: -428.91 % |
|
| Return On Sales (ROS) | 6.907 % | |
| Return On Sales QoQ | 18.372 % | |
| Return On Sales YoY | 10.107 % | |
| Return On Sales IPRWA | high: 9.099 % median: 8.056 % FDX: 6.907 % mean: 6.325 % low: -7.05 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 1.2 B | |
| Free Cash Flow Yield | 1.962 % | |
| Free Cash Flow Yield QoQ | -3.824 % | |
| Free Cash Flow Yield YoY | 164.777 % | |
| Free Cash Flow Yield IPRWA | high: 4.561 % FDX: 1.962 % mean: 1.595 % median: 1.536 % low: -33.267 % |
|
| Free Cash Growth | 9.241 % | |
| Free Cash Growth QoQ | 105.675 % | |
| Free Cash Growth YoY | -51.486 % | |
| Free Cash Growth IPRWA | high: 1091.402 % FDX: 9.241 % median: -44.186 % mean: -96.26 % low: -504.706 % |
|
| Free Cash To Net Income | 1.249 | |
| Cash Flow Margin | 7.648 % | |
| Cash Flow To Earnings | 1.878 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.077 % | |
| Return On Assets QoQ | 15.064 % | |
| Return On Assets YoY | 25.087 % | |
| Return On Assets IPRWA | high: 2.651 % mean: 1.41 % FDX: 1.077 % median: 0.802 % low: -3.396 % |
|
| Return On Capital Employed (ROCE) | 2.222 % | |
| Return On Equity (ROE) | 0.034 | |
| Return On Equity QoQ | 14.493 % | |
| Return On Equity YoY | 21.321 % | |
| Return On Equity IPRWA | high: 0.074 mean: 0.047 median: 0.043 FDX: 0.034 low: -0.194 |
|
| DuPont ROE | 3.419 % | |
| Return On Invested Capital (ROIC) | 2.438 % | |
| Return On Invested Capital QoQ | 26.452 % | |
| Return On Invested Capital YoY | -110.397 % | |
| Return On Invested Capital IPRWA | high: 5.058 % mean: 2.96 % FDX: 2.438 % median: 1.946 % low: -1.948 % |
|