Aureus
COkay

FedEx Corporation(FDX)

C

Financial data as of May 31, 2026Improving · Industrials

FCF Margin5.2%Free Cash Flow / Revenue
Cash Conversion201.3%Operating CF / Net Income
Free Cash Flow$5.1B
Revenue$94.7B
Net Cash-$29.6BNet debt position
Debt / FCF8.7xElevated debt burden
Current Ratio1.48Adequate short-term liquidity
YoY FCF Growth+73.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseD
→
-0.5Elevated debt-to-FCF ratio (8.7x; 7.0x sector-adjusted)
→
+1Strong YoY FCF growth (73.6% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalC

Analysis Summary

Strengths

  • Excellent cash conversion (201%)
  • Strong YoY FCF growth (+73.6%)
  • Highly consistent quarterly FCF

Concerns

  • Low FCF margin (5.2%)
  • Heavy debt position ($29.6B net debt, 8.7x FCF)
  • High debt-to-FCF ratio (8.7x)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin5.2%
Net Margin4.7%
Operating CF Margin9.4%
CapEx Ratio4.0%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$29.6BNet debt position
Debt / FCF8.7xElevated debt burden
Current Ratio1.48Adequate liquidity
Debt / Equity1.36Moderate leverage

Quarterly FCF Trend

+73.6% YoYImproving (+73.6%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameFedEx Corporation
SectorIndustrials
Free Cash Flow$5.1B
Revenue$94.7B
Net Income$4.4B
Operating Cash Flow$8.9B
Capital Expenditure$3.8B
FCF Margin5.2%
Cash Conversion Rate201.3%
Net Margin4.7%
Total Debt$42.9B
Total Cash$13.3B
Net Cash-$29.6B
Current Ratio1.48
Debt / Equity1.36
Debt / FCF8.7x
YoY FCF Growth+73.6%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateMay 31, 2026
GradeC
Data SourceYahoo Finance

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