Aureus
FRed Flag

FedEx Corporation(FDX)

F

Financial data as of May 31, 2025Improving · Industrials

FCF Margin3.4%Free Cash Flow / Revenue
Cash Conversion171.9%Operating CF / Net Income
Free Cash Flow$3.0B
Revenue$87.9B
Net Cash-$31.9BNet debt position
Debt / FCF12.6xElevated debt burden
Current Ratio1.19Adequate short-term liquidity
YoY FCF Growth+138.8%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-2Very high debt-to-FCF ratio (12.6x)
→
+1Strong YoY FCF growth (138.8% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (172%)
  • Strong YoY FCF growth (+138.8%)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Concerns

  • Low FCF margin (3.4%)
  • Heavy debt position ($31.9B)
  • High debt-to-FCF ratio (12.6x)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin3.4%
Net Margin4.7%
Operating CF Margin8.0%
CapEx Ratio4.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$31.9BNet debt position
Debt / FCF12.6xElevated debt burden
Current Ratio1.19Adequate liquidity
Debt / Equity1.33Moderate leverage

Quarterly FCF Trend

+138.8% YoYImproving (+138.8%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameFedEx Corporation
SectorIndustrials
Free Cash Flow$3.0B
Revenue$87.9B
Net Income$4.1B
Operating Cash Flow$7.0B
Capital Expenditure$4.1B
FCF Margin3.4%
Cash Conversion Rate171.9%
Net Margin4.7%
Total Debt$37.4B
Total Cash$5.5B
Net Cash-$31.9B
Current Ratio1.19
Debt / Equity1.33
Debt / FCF12.6x
YoY FCF Growth+138.8%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateMay 31, 2025
GradeF
Data SourceYahoo Finance

Related Research

All research →
Sector Report4 min read

Industrials: 12 A-Grades Hiding a Debt Problem

The industrials sector looks healthy on the surface — 12 A-grades, 62% of companies improving — but the 6.5x average debt-to-FCF ratio tells a different story. When airlines and legacy manufacturers burn through cash, the sector's balance sheet fragility shows.

Feb 13, 2026
VRSKUNPCSXNSC+10