FedEx Corp. (NYSE:FDX)

The analysis of the financial ratios over the specified periods reveals several notable trends concerning valuation multiples related to price to earnings, operating profit, sales, and book value.

Price to Earnings (P/E) Ratio

The P/E ratio data, starting from May 31, 2020, exhibits a declining trend initially, dropping from approximately 33.43 to a low of 11.2 by November 30, 2022. This suggests an improving earnings scenario relative to price or a revaluation in market expectations. Post this low, the ratio fluctuates moderately, peaking around 17.21 in November 30, 2024, before tapering off again towards the end of the observed period, ending near 12.97. The overall pattern indicates periods of market optimism followed by cautious sentiment.

Price to Operating Profit (P/OP) Ratio

This ratio shows a high starting point of 20.51 in November 30, 2020, followed by a marked decline to 6.66 by August 31, 2022. Subsequently, the P/OP increases again peaking at 14.24 in November 30, 2024, before falling back down to just over 10.00 by August 31, 2025. The fluctuations suggest volatile market perceptions about operating profitability or changes in operating performance. The sharp decline implies improved operating profit relative to price at mid periods, with later increases indicating either reduced operating profitability or a price premium.

Price to Sales (P/S) Ratio

The P/S ratio data reveals a rise from 0.62 in August 31, 2020, to a high near 1.04 in February 29, 2021, followed by a general downtrend reaching a low of 0.42 in August 31, 2022. After this trough, there is a moderate recovery peaking at 0.85 around November 30, 2024, and then declining gradually towards 0.60 by August 31, 2025. This pattern suggests fluctuating investor valuation of sales, potentially reflecting changes in revenue growth expectations or margin pressures.

Price to Book Value (P/BV) Ratio

The P/BV ratio shows more volatility, starting at 2.49 on August 31, 2019, dropping to 1.32 by February 29, 2020, rebounding to 3.68 by November 30, 2020, and generally fluctuating but trending downward thereafter. By August 31, 2022, it declines again significantly to about 1.60 before climbing back up to around 2.70 in early 2024. Toward the final periods, a steady decline is apparent, finishing near 1.92 by August 31, 2025. This ratio’s fluctuations may reflect changing perceptions of the company's net asset value and capital structure adjustments.

In summary, the data demonstrates volatility and alternating trends in valuation metrics over time. Periods of increasing ratios suggest heightened market valuation relative to earnings, operating profit, sales, and equity, whereas declining ratios indicate either improved financial performance beneath static prices or diminishing investor expectations. The overall patterns highlight cyclical market sentiment and possible underlying operational or financial shifts within the company.

Share Price Trends

The share price exhibited significant volatility over the observed periods. Initially, the price declined sharply from 173.3 USD in August 2019 to a low of 94.96 USD by February 2020. Subsequently, the share price entered a strong upward phase, peaking at 294.82 USD in May 2021. After this peak, the price showed a downward correction and fluctuated between 217.98 USD and 164.35 USD from late 2021 through early 2023. From mid-2023 onwards, the price generally improved again, reaching a high of 305.02 USD in May 2024, followed by a gradual decline to 226.5 USD by August 2025.

Earnings Per Share (EPS) Analysis

EPS data is missing for early periods until May 2020, when it was reported at 4.91 USD. From that point, EPS demonstrated a strong upward trajectory, peaking at 19.57 USD in August 2021. Following this peak, EPS declined somewhat, fluctuating yet maintaining a relatively elevated level between 13.21 USD and 17.86 USD through to the end of the period in August 2025. This indicates a period of improved profitability that stabilized at a sustainable level.

Price-to-Earnings (P/E) Ratio Insights

The P/E ratio, not available for early periods, started at 33.43 in May 2020, indicating a relatively high valuation compared to earnings at the start of the profit increase. The ratio declined steadily as EPS grew faster than the share price initially, hitting a low of around 11.5 by May 2022. Subsequently, the P/E ratio experienced fluctuations between approximately 12 and 18 through to August 2025, reflecting changing market sentiment and valuation adjustments amidst fluctuating share prices and stable earnings.

Overall Observations

The financial data reveals an initial phase of price weakness followed by strong earnings growth and price recovery. The share price volatility contrasts with more stable earnings performance after 2021. The P/E ratio dynamics suggest that market valuation underwent contraction as earnings improved, with periodic revaluations consistent with share price fluctuations. The data collectively points to a maturing financial profile with a balance between growth and valuation realignments over the examined timeframe.

Share Price Trend

The share price exhibits notable volatility over the examined periods. Initially, there was a decline from $173.3 in August 2019 to $94.96 in February 2020. This was followed by a significant increase, peaking at $294.82 in May 2021. Subsequently, the price experienced a downward trend, dropping to $154.54 in August 2022. From this low point, the share price rebounded again, reaching a new high of $305.02 in May 2024 before declining slightly to $226.5 by August 2025. This pattern suggests periods of sharp recovery after notable dips, accompanied by fluctuations indicative of market or company-specific dynamics.

Operating Profit Per Share

Operating profit per share, available from May 2020 onwards, shows a generally increasing trend initially, rising from $9.23 to a peak of $24.03 by August 2022. After this peak, the figure experiences a gradual decline, falling to $19.56 by May 2023, followed by a modest recovery and relative stabilization around the $20-$22 range through to August 2025. This indicates improved profitability per share during the early period, followed by a correction and stabilization in later periods.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio, calculated from May 2020 data, starts relatively high at 17.79, increasing to 20.51 by November 2020, before embarking on a sustained downward path to a low of 6.66 in August 2022. Following this trough, the ratio increases again, reaching a secondary peak of 14.24 in November 2024, then declines modestly to 10.04 by August 2025. This pattern reflects changes in market valuation relative to operating earnings, with initial market optimism peaking and subsequent corrections aligning valuations more closely with operating profits, before renewed investor interest or valuation adjustments in the later periods.

Overall Insights

The data reveals cyclical patterns in valuation and profitability. The share price and P/OP ratio appear to move inversely to operating profit per share trends, with profit growth periods correlating with a declining P/OP ratio and vice versa. Such dynamics suggest phases where profitability gains were potentially recognized by the market, leading to more attractive valuations (lower P/OP), followed by periods where market sentiment or external factors drove valuation multiples upward despite stabilized or declining operating profit. The fluctuations in share price and valuation multiples point to sensitivity to broader market conditions or company-specific developments impacting investor confidence and pricing.

Share Price Trend

The share price exhibited significant volatility over the observed period. Initially, it declined from 173.3 US$ in August 2019 to a low of 94.96 US$ by February 2020. Subsequently, there was a pronounced recovery and growth, peaking at 294.82 US$ in May 2021. After this peak, the share price experienced a downward correction, falling to 154.54 US$ by August 2022. A renewed upward trend followed, with values increasing again to 305.02 US$ in May 2024. However, this was followed by another correction, with the price declining to 226.5 US$ by August 2025.

Sales Per Share Evolution

Sales per share data, available from May 2020 onwards, showed a generally steady upward trajectory. Starting at 264.23 US$, the metric rose consistently to 375.46 US$ by August 2025. There were minor fluctuations and periods of slight decline, notably after February 2023, but overall sales per share demonstrated growth indicative of improving revenue generation per share over time.

Price-to-Sales (P/S) Ratio Dynamics

The P/S ratio displayed considerable variation across the periods, reflecting the interplay between share price and sales per share. After starting at 0.62 in May 2020, the ratio increased sharply to a peak of 1.04 in February 2021. Following this, there was a consistent decline, reaching a low of 0.42 by August 2022. Post that trough, the P/S ratio gradually recovered to 0.85 in May 2024, before trending downward again to 0.6 in August 2025.

Insights

The share price movements appear to have more pronounced volatility compared to the relatively stable growth in sales per share. The fluctuations in the P/S ratio suggest that stock market valuation sentiment varied independently from sales performance during the period. Periods where the P/S ratio peaked coincided with share price highs rather than leaps in sales per share, indicating that market expectations or external factors influenced valuation beyond operational performance. The subsequent corrections in share price and P/S ratio point to market adjustments following transient valuation spikes.

The share price experienced significant volatility over the analyzed periods. Initially, the price decreased from 173.3 US$ in August 2019 to a low of 94.96 US$ in February 2020. This was followed by a pronounced recovery and rapid increase, peaking at 294.82 US$ in May 2021. Subsequently, the share price showed a gradual decline with fluctuations, reaching a lower value around 154.54 US$ by August 2022. After this trough, the price demonstrated a consistent upward trend, culminating in a peak of 305.02 US$ by May 2024, before experiencing another moderate decline towards the end of the series, finishing at 226.5 US$ in August 2025.

The book value per share (BVPS) exhibited a generally upward trend throughout the entire period under review. Starting at 69.63 US$ in August 2019, the BVPS recorded minor fluctuations but consistently increased overall, reaching 119.01 US$ in May 2025. This steady increase indicates a growth in the company’s net asset value on a per-share basis, reflecting potentially strengthening fundamentals or retained earnings over time.

The price-to-book value (P/BV) ratio mirrored the fluctuations seen in the share price relative to the more stable increase in BVPS. The ratio started at a moderately high level of 2.49 in August 2019, declined sharply to 1.32 by February 2020, coinciding with the trough in share price. Following this, it surged to a peak of 3.68 in November 2020, indicating increased market valuation relative to the book value. A decline ensued thereafter, with the ratio falling to 1.6 by August 2022, in line with the share price decline. From August 2022 onward, the P/BV ratio trended upward again, reaching values around 2.7 to 2.5, but never returning to the earlier peaks. This pattern suggests fluctuations in market sentiment and valuation relative to the company’s book value, with notable periods of both undervaluation and overvaluation.

Share Price Trends

Marked by significant volatility with a sharp dive in early 2020, a strong rebound peaking mid-2021, a subsequent decline through mid-2022, and a recovery up to mid-2024 followed by a moderate decrease.

Book Value Per Share

Consistently increasing over the entire period, reflecting growth in net assets per share despite temporary share price fluctuations.

Price-to-Book Ratio

Highly variable, reflecting changes in market valuation relative to the company’s book value, with extreme lows during early 2020 and peaks in late 2020. The ratio normalized somewhat post-2022 but remained above 1.5, indicating the market generally valued the company above its book value.