FedEx Freight Holding Company, Inc. (FDXF) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: FedEx Freight Holding Company, Inc.

Updated on October 19, 2026 · accounts published on September 2, 2026

Reading of October 16, 2026: A freight business with thin margins, shrinking profits and heavy debt

FedEx Freight trades at a P/E of 29.3 over the last 12 months, 13 % above its sector median, while EPS fell 51 % year on year.

• Is FedEx Freight expensive or cheap? Its P/E of 29.3 over the last 12 months sits 13 % above the 25.9 sector median, even after a 40 % fall from the high.
• How is the business doing? Revenue slipped 1 % but EPS fell 51 % over the last 12 months, with an operating margin of just 6.2 %.
• Does FedEx Freight turn its margin into cash, and at what point of the cycle is it priced? Free cash flow was −32 % of net income in fiscal 2026, against the 85 % considered healthy for industrials.
• How strong is the balance sheet? Net debt reached 6.5× EBITDA in fiscal 2026, more than double the 3.0× ceiling considered healthy for industrials.
• What to expect from the next earnings? Analysts expect EPS of $1.35 on December 2, 2026, below the $1.47 reported last quarter; 2 of 3 rate the stock a buy.

Is FedEx Freight expensive or cheap?

Over the last 12 months FedEx Freight trades at a P/E of 29.3, 13 % above the 25.9 median of its 407 sector peers, and at an EV/EBITDA of 24.8×. The share is 40 % below its 52-week high of $188.46 and much closer to the $108.69 low, yet the multiple has stayed high because earnings fell faster than the price: EPS is down 51 % year on year. A premium to the sector usually needs above-average growth or returns, and neither shows up in the business figures below.

How is the business doing?

Sales over the last 12 months were 1.0 % lower than a year earlier, while EPS fell 50.7 %, so the drop in profit is far larger than the drop in sales. An operating margin of 6.2 % and a net margin of 6.3 % leave little room for a weak quarter. ROIC of 6.6 % over the last 12 months is 2.4 points below the 9.0 % sector median. The 80 % ROE flatters the picture: measured against all the capital employed, debt included, FedEx Freight earns less than its typical peer.

Does FedEx Freight turn its margin into cash, and at what point of the cycle is it priced?

Transport is semi-cyclical, so what counts is how much margin survives a downturn and how much of it ends up as cash; that is what separates solid operators from those that only look profitable at the top of the cycle. FedEx Freight fails three core tests: an operating margin of 6.1 % in fiscal 2026 against a healthy 12 %, ROIC of 6.6 % against 15 %, and free cash flow at −32 % of net income against 85 %. Capex of 4.3 % of revenue sits inside the healthy 4 % to 8 % band. Paying a P/E of 29.3 for depressed earnings only works if margins recover.

How strong is the balance sheet?

Net debt stood at $41.28 per share in fiscal 2026 ($42.96 of debt minus $1.68 of cash), equal to 37 % of the current share price. At 6.5× EBITDA it is more than twice the 3.0× that industrials can carry comfortably. Short-term liquidity is adequate, with a current ratio of 1.52, and an Altman Z of 3.3 over the last 12 months keeps the company in the safe zone above 2.99. A Piotroski score of 6 out of 9 is one point short of the 7 that marks high quality. The main risk is leverage combined with negative free cash flow.

What to expect from the next earnings?

On September 2, 2026 FedEx Freight reported EPS of $1.47, 9.7 % above the $1.34 consensus. For the quarter due on December 2, 2026 analysts expect $1.35, a step down from that result. The 2027 EPS consensus has not moved in the last 21 days, holding at $4.67 among 8 analysts, and revenue estimates are equally stable. Coverage is thin: 3 analysts issue recommendations, 2 say buy, 1 hold and none sell. At a P/E of 29.3, the market is already paying for a recovery that flat estimates have yet to confirm.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.