Is the business good?
How good a business is FDX?
FedEx earns 9.8% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
9.8%
Return on invested capital · cost of capital 9.0% · 0.80 points above what the capital costs: growth creates value
- Operating margin
- 5.8%
Operating margin · Integrated Freight & Logistics median 6.1% · 12 months to Q4 2026
- Cash conversion
- 1.15×
Cash conversion · 0.73× a year ago · every dollar of reported profit arrived as cash, and more
| Year | Operating margin |
|---|---|
| FY2021 | 7.0% |
| FY2022 | 6.7% |
| FY2023 | 5.5% |
| FY2024 | 6.3% |
| FY2025 | 5.9% |
| FY2026 | 5.8% |
Details›
- Operating margin12 months to Q4 2026
- 5.8%
- Net margin12 months to Q4 2026
- 4.7%
- Free cash flow margin
- 5.4%
- Revenue, trailing twelve months
- $94.7B
- Free cash flow, trailing twelve months
- $5.12B
- Net income, trailing twelve months
- $4.43B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Integrated Freight & Logistics
Ranks #1 of 10 by Smart Score