Orin
FDXNYSE·Integrated Freight & Logistics

FedEx Corporation FDX

Market cap $68.8BP/E 15.9× trailingGross margin 22.9%Reports Wed 28 Oct, after the close
$290.68
−0.82 (−0.28%)live 09:35 ET
52-wk $180.99 – $345.37
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Orin's take
0.55conviction · moderate
Refreshed 29 Aug · take v6. A new filing or a print queues the next refresh.

FedEx's FY2026 results (ended 2026-05-31) showed a genuine fundamental inflection—revenue grew 7.7% to $94.72B, EPS rose 10.4% to $18.55, and free cash flow surged to $5.12B from $2.98B—but those figures include the FedEx Freight business that was 80.1% spun off in June 2026, creating a structural break that makes forward comparability uncertain. The stock trades at a 34.6% P/E discount to the peer median (18.0x vs 27.6x) and sits above both its 50-day ($319.50) and 200-day ($288.83) moving averages, yet has treaded water since the spin-off while smart money scores have slipped from +0.15 to -0.07 and total debt has risen to $42.94B.

With post-spin financials unavailable and institutional sentiment cooling, the call is hold until the market sees clean parcel-only financials and evidence that Network 2.0 savings are materializing.

What could go wrong

  • Post-spin earnings gap. FY2026 results include Freight revenue and profit; the remaining parcel-only FedEx will report lower absolute revenue and operating income, which could pressure the stock if the market reprices the smaller earnings base.
  • Rising leverage. Total debt increased to $42.94B at FY2026 year-end from $37.42B in FY2025, and the spin-off may further alter the capital structure, raising balance-sheet risk.
  • Smart money outflow. The smart money score turned negative at -0.0685 as of 2026-06-30, down from +0.1528 in Q1 2026, suggesting institutional positioning has weakened despite new 13F positions from names like BNY Mellon.
  • Insider dispositions. Over the 24-month window, insider net value is -$6.17M despite positive net shares of +136,199, highlighted by a 253,927-share disposition by COO Richard Smith on 2026-08-07.

What would change my mind

First post-spin quarterly report. FedEx reports its first quarter excluding Freight contributions; if parcel-only operating margins exceed 7% and revenue shows sequential growth, the discount narrows.bullish
Network 2.0 savings confirmation. Management quantifies achieved savings toward the ~$2B annual target by 2027 in a guidance update or investor day.bullish
Smart money score deterioration. The Q3 2026 13F composite (available ~2026-11-14) shows smart money score falling below -0.15 or fund count dropping below 60.bearish
Volume and margin compression. Post-spin quarterly results show parcel-only operating margin below 6.5% or revenue declining year-over-year, indicating the leaner business lacks pricing power.bearish

Where this comes from: FMP FY2026 annual fundamentals and derived_metrics · FMP FY2026 and FY2025 annual fundamentals · Motley Fool news article published 2026-08-28 · peer_relative composite as of 2026-08-28. Orin's read on FDX; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$4.4B0.1% of fund
State Street$3.2B0.1% of fund
Vanguard Portfolio Management$2.3B0.1% of fund
Franklin Resources$1.7B0.4% of fund
Geode Capital Management$1.6B0.1% of fund
Fmr$1.6B0.1% of fund

130 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 184 Form 4 filings, net −$6.9M. Of the 50 on hand, 0 were open-market purchases and 1 a sale— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Industrials
MetricNowOwn medianSector
P/E15.9×14.5×44.5×
EV/EBITDA9.3×8.7×
P/S0.73×0.63×
P/B2.2×2.3×

Its P/E sits above all 5 of the last 5 years (+1.36σ from its own mean).

What the price assumes

2.3%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $5.1B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

49 firms · 2026-09-23
Consensus target

$333

$160$425 · +15% against today's price

How they rate it
  • 28 buy or overweight
  • 18 hold
  • 3 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 25.8× of 8 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
FDXFedEx Corporation$69B15.9×9.3×22.9%4.7%15%
CMICummins Inc.$72B26.7×15.6×25.3%7.8%22%
CSXCSX Corporation$87B27.3×15.8×54.9%22.2%24%
LHXL3Harris Technologies, Inc.$45B24.0×14.6×25.5%8.2%9%
NSCNorfolk Southern Corporation$71B26.9×15.9×53.7%21.0%17%
PCARPACCAR Inc$59B23.5×19.1×14.9%9.2%13%
RSGRepublic Services, Inc.$66B30.2×14.2×39.1%12.9%18%
UPSUnited Parcel Service, Inc.$81B17.8×9.9×16.6%5.1%29%
URIUnited Rentals, Inc.$64B24.9×11.8×37.1%15.7%29%

The median is of the 8 peers listed above and nothing else — check it against the column. This company trades 38.5% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY15 38.2×FY26 18.2×

What its sector has traded at

Industrials
FY14 173.5×FY26 32.7×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$166$320.90 · −48%2026-06-10
Levered DCF$104$320.90 · −68%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $290.68
52-week range$181 – $345
Analyst targets$160 – $425
Standard DCF$166 as of 2026-06-10, when it was $320.90
Levered DCF$104 as of 2026-06-10, when it was $320.90
At own 5y-median P/E (15×)$267
At 5y P/E range (13–16×)$238 – $288
At sector P/E (45×)$817

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.