Price to Operating Profit (P/OP)
since 2005
Calculation
FedEx Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 15, 2024 | 13.40 | = | 305.02 | ÷ | 22.75 | 22.75 | = | 5,559 | ÷ | 244,302,246 | |
| Jul 17, 2023 | 13.03 | = | 254.73 | ÷ | 19.56 | 19.56 | = | 4,912 | ÷ | 251,187,242 | |
| Jul 18, 2022 | 9.07 | = | 217.98 | ÷ | 24.03 | 24.03 | = | 6,245 | ÷ | 259,845,660 | |
| Jul 19, 2021 | 13.46 | = | 294.82 | ÷ | 21.91 | 21.91 | = | 5,857 | ÷ | 267,348,232 | |
| Jul 20, 2020 | 17.79 | = | 164.13 | ÷ | 9.23 | 9.23 | = | 2,417 | ÷ | 261,954,496 | |
| Jul 16, 2019 | 9.92 | = | 169.79 | ÷ | 17.12 | 17.12 | = | 4,466 | ÷ | 260,808,410 | |
| Jul 16, 2018 | 12.57 | = | 230.18 | ÷ | 18.31 | 18.31 | = | 4,870 | ÷ | 265,924,840 | |
| Jul 17, 2017 | 11.48 | = | 215.48 | ÷ | 18.78 | 18.78 | = | 5,037 | ÷ | 268,257,434 | |
| Jul 18, 2016 | 13.87 | = | 160.76 | ÷ | 11.59 | 11.59 | = | 3,077 | ÷ | 265,524,323 | |
| Jul 14, 2015 | 25.90 | = | 171.24 | ÷ | 6.61 | 6.61 | = | 1,867 | ÷ | 282,430,208 | |
| Jul 14, 2014 | 12.51 | = | 151.07 | ÷ | 12.07 | 12.07 | = | 3,446 | ÷ | 285,423,144 | |
| Jul 15, 2013 | 12.87 | = | 103.70 | ÷ | 8.06 | 8.06 | = | 2,551 | ÷ | 316,584,465 | |
| Jul 16, 2012 | 9.13 | = | 91.92 | ÷ | 10.06 | 10.06 | = | 3,186 | ÷ | 316,599,754 | |
| Jul 12, 2011 | 12.54 | = | 94.08 | ÷ | 7.50 | 7.50 | = | 2,378 | ÷ | 317,027,077 | |
| Jul 15, 2010 | 12.16 | = | 77.22 | ÷ | 6.35 | 6.35 | = | 1,998 | ÷ | 314,540,141 | |
| Jul 15, 2009 | 23.98 | = | 57.36 | ÷ | 2.39 | 2.39 | = | 747 | ÷ | 312,334,216 | |
| Jul 16, 2008 | 11.54 | = | 76.96 | ÷ | 6.67 | 6.67 | = | 2,075 | ÷ | 311,187,628 | |
| Jul 13, 2007 | 11.05 | = | 117.25 | ÷ | 10.61 | 10.61 | = | 3,276 | ÷ | 308,769,004 | |
| Jul 14, 2006 | 11.08 | = | 109.01 | ÷ | 9.84 | 9.84 | = | 3,014 | ÷ | 306,410,446 | |
| Jul 14, 2005 | 10.21 | = | 83.40 | ÷ | 8.17 | 8.17 | = | 2,471 | ÷ | 302,630,105 |
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of FedEx Corp. Annual Report.
- Share Price Trends
- The share price exhibited notable fluctuations over the examined period. Starting at $83.40 in mid-2005, it peaked at $117.25 by 2007, followed by a significant decline to $57.36 in 2009, indicative of broader market challenges or company-specific issues during that time. Subsequently, there was a recovery trend with some volatility, culminating in a substantial rise to $305.02 by mid-2024. This represents an overall strong appreciation in market value, despite interim declines, with the most pronounced growth occurring post-2014.
- Operating Profit Per Share (OPSP)
- The operating profit per share demonstrated variability aligned with economic cycles and company performance. Initially, OPSP increased from $8.17 in 2005 to $10.61 in 2007, before dropping sharply to $2.39 in 2009, reflecting operational challenges. Thereafter, a recovery trend is evident, with fluctuations around $6 to $12 per share through 2016. From 2017 to 2019, the OPSP stabilized at higher levels near $17 to $18, followed by a dip in 2020 ($9.23), likely due to global economic disruption. The last years show a resurgence, peaking at $24.03 in 2021 and settling around $22.75 by 2024, indicating improved operational efficiency and profitability.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio illustrates market valuation relative to operating profit per share, signaling investor sentiment and growth expectations. The ratio began near 10.21 in 2005, remaining relatively stable around 11 until 2008. A sharp increase to 23.98 in 2009 corresponds with the low operating profit and depressed market conditions, implying potentially overstretched valuations. Following this, the ratio fluctuated moderately, mostly ranging between 9 and 13, with occasional spikes such as 25.9 in 2015 due to a drop in OPSP. The recent period reflects a normalization of the ratio, hovering between 9 and 13, which suggests a more balanced market appraisal relative to profits despite share price increases.
- Summary Insights
- Overall, the company’s financial data reveals a cycle impacted by economic downturns around 2008-2009 and the global events circa 2020, reflected in share price and operating profit per share volatility. The recovery phases post each downturn exhibit resilience and ability to regain profitability. Market valuation relative to operating profit has displayed periodic divergence, signaling moments of market optimism or caution. The strong share price appreciation in recent years alongside robust operating profits suggests a positive investor outlook supported by operational improvements.
Comparison to Competitors
FedEx Corp., P/OP, long-term trends, comparison to competitors
| FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | |
|---|---|---|---|---|---|
| Jul 15, 2024 | 13.40 | 59.27 | 15.06 | 5.92 | 11.64 |
| Jul 17, 2023 | 13.03 | 152.26 | 16.75 | 3.54 | 13.86 |
| Jul 18, 2022 | 9.07 | — | 12.68 | 6.86 | 11.70 |
| Jul 19, 2021 | 13.46 | — | 16.53 | — | 14.20 |
| Jul 20, 2020 | 17.79 | — | 17.46 | — | 18.23 |
| Jul 16, 2019 | 9.92 | — | 14.83 | 4.07 | 11.72 |
| Jul 16, 2018 | 12.57 | — | 13.73 | 7.11 | 13.69 |
| Jul 17, 2017 | 11.48 | — | 12.30 | 5.43 | 11.98 |
| Jul 18, 2016 | 13.87 | — | 12.14 | 5.41 | 17.14 |
| Jul 14, 2015 | 25.90 | — | 7.89 | 3.61 | 11.27 |
| Jul 14, 2014 | 12.51 | — | 12.26 | 11.01 | 18.48 |
| Jul 15, 2013 | 12.87 | — | 10.81 | 13.59 | 12.57 |
| Jul 16, 2012 | 9.13 | — | 9.26 | 224.23 | 58.68 |
| Jul 12, 2011 | 12.54 | — | 9.74 | 3.82 | 12.11 |
| Jul 15, 2010 | 12.16 | — | 9.29 | 8.23 | 12.40 |
| Jul 15, 2009 | 23.98 | — | 9.25 | — | 15.34 |
| Jul 16, 2008 | 11.54 | — | 6.09 | — | 7.62 |
| Jul 13, 2007 | 11.05 | — | 9.75 | 3.48 | 125.70 |
| Jul 14, 2006 | 11.08 | — | 9.75 | 9.70 | 11.27 |
| Jul 14, 2005 | 10.21 | — | 13.19 | — | 13.88 |
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).