FedEx Corp. (NYSE:FDX)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio demonstrated a significant decline from 33.43 in May 2020 to 15.07 in May 2021, indicating a notable decrease in market valuation relative to earnings. Between May 2021 and May 2025, the P/E ratio fluctuated moderately, remaining within the range of approximately 13 to 17, with a downward trend evident in the final year, reaching 13.01 in May 2025. This pattern suggests the market's reassessment of earnings growth prospects or changes in investor sentiment over the period.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio likewise exhibited a downward trend from 17.79 in May 2020 to a low of 9.07 in May 2022. Subsequently, the ratio increased, peaking at 13.4 in May 2024, before declining again to 10.21 by May 2025. This indicates variability in market valuation relative to operating profits, possibly reflecting fluctuations in operational efficiency or shifts in profit margins.

Price to Sales (P/S) Ratio

The Price to Sales ratio displayed volatility throughout the period. It increased from 0.62 in May 2020 to 0.94 in May 2021, followed by a decline to 0.61 in May 2022. After May 2022, the ratio saw a moderate recovery, reaching 0.85 in May 2024, and then dropping again to 0.61 in May 2025. This pattern suggests fluctuating investor optimism about revenue generation relative to the company’s stock price.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio initially rose from 2.35 in May 2020 to a peak of 3.26 in May 2021, indicating increased market valuation relative to net asset value. Following this peak, the ratio decreased over the next three years, settling at 1.9 by May 2025. The declining trend after 2021 implies a reassessment of the company’s book value or a market correction in valuation relative to net assets.

Share Price Trend

The share price exhibited significant volatility over the observed periods. It increased sharply from $164.13 in 2020 to a peak of $294.82 in 2021. Following this peak, the price declined to $217.98 in 2022 before recovering to $254.73 in 2023 and further increasing to $305.02 in 2024. However, in 2025, the price decreased notably to $225.73. This pattern indicates periods of strong growth interspersed with declines, suggesting market fluctuations or changes in investor sentiment during these years.

Earnings Per Share (EPS) Development

Earnings per share showed remarkable growth from $4.91 in 2020 to $19.57 in 2021, reflecting a substantial improvement in profitability. This peak was followed by a reduction to $14.72 in 2022. Since then, EPS has gradually increased to $15.81 in 2023 and $17.73 in 2024, before a slight dip to $17.35 in 2025. Overall, the EPS trend reflects enhanced earnings capability post-2020, with some fluctuations but maintaining levels well above the initial year.

Price to Earnings (P/E) Ratio Movements

The P/E ratio declined sharply from 33.43 in 2020 to approximately 15 in 2021 and remained relatively stable around the mid-teens through 2024, fluctuating between 14.8 and 17.21. By 2025, it dropped further to 13.01. The initial high P/E in 2020 suggests investors anticipated higher growth or valued earnings optimistically at that time. The decrease in subsequent years implies either an adjustment in growth expectations or market valuation moderation relative to earnings.

Overall Analysis

The data indicates strong earnings growth, particularly from 2020 to 2021, with profitability levels stabilizing at higher values thereafter. The share price has shown more volatility, not always aligning perfectly with EPS movements, which may reflect external market influences or changing risk assessments. The steady downward trend in P/E ratio suggests a maturing valuation perspective among investors, possibly indicating more cautious optimism about future earnings growth relative to earlier periods.

The analysis of the financial data reveals several noteworthy trends and patterns over the six-year period ending May 31, 2025.

Share Price

The share price demonstrated a generally fluctuating pattern. It increased significantly from $164.13 in 2020 to a peak of $294.82 in 2021, followed by a decline to $217.98 in 2022. Subsequently, it rose again to $305.02 in 2024 before dropping to $225.73 in 2025. Overall, this indicates volatility with notable peaks in 2021 and 2024, and some correction phases afterward.

Operating Profit Per Share

The operating profit per share showed an upward trend from $9.23 in 2020 to $24.03 in 2022, marking an improvement in operational profitability. After reaching this high point, the figure experienced a decline to $19.56 in 2023, but rebounded moderately to $22.75 in 2024, followed by a slight decrease to $22.12 in 2025. Despite some variability, profit per share remained substantially higher than at the beginning of the period.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio, representing valuation relative to operating profit per share, decreased markedly from 17.79 in 2020 to 9.07 in 2022, reflecting a period where earnings outpaced price increases, potentially indicating undervaluation or improved earnings. However, the ratio rose again to around 13.03–13.4 in 2023-2024, suggesting that share price gains outstripped operating profit growth during that time. By 2025, it declined once more to 10.21, implying a rebalancing of valuation relative to profitability.

In summary, the data exhibits a fluctuating share price with two major peaks and intervening declines, coupled with generally improving operating profitability that faced some moderation in the latter years. The valuation multiples adjusted accordingly, reflecting market responsiveness to changes in operational performance and external factors influencing the share price. Together, these patterns suggest a company experiencing cyclical influences while maintaining underlying operational strength.

The financial data analyzed reveals several notable trends in key performance indicators over the six-year period ending May 31, 2025.

Share Price

The share price of the company exhibited considerable volatility throughout the period. Beginning at $164.13 in 2020, it increased sharply to a peak of $294.82 in 2021. Thereafter, it declined to $217.98 in 2022, followed by a moderate recovery to $254.73 in 2023, and another rise to $305.02 in 2024. In the final year, the share price dropped significantly to $225.73, marking a notable decline from the previous year's high.

Sales per Share

Sales per share showed a consistent upward trend, indicating growing revenue generation relative to the number of shares. It increased steadily from $264.23 in 2020 to $314.04 in 2021, then continued climbing to $359.88 in 2022. The figure remained relatively stable in 2023 and 2024, at approximately $358.9 per share, before reaching a new high of $372.73 in 2025.

Price-to-Sales (P/S) Ratio

The P/S ratio demonstrated fluctuations that correlate with changes in share price more than sales per share. Starting at 0.62 in 2020, it rose significantly to 0.94 in 2021, coinciding with the peak in share price. The ratio then dropped to 0.61 in 2022, rose again to 0.71 in 2023 and 0.85 in 2024, before falling back to 0.61 in 2025. These variations suggest that the market valuation, relative to sales, has experienced cycles of optimism and correction.

Overall, while sales per share steadily increased, reflecting enhanced operational performance or revenue growth, the share price and P/S ratio fluctuated more markedly, indicating market sentiment and valuation metrics have been less stable. The combination suggests underlying business growth amid periods of market volatility affecting investor perception and stock valuation.

The analysis of the financial data reveals several notable trends over the six-year period ending May 31, 2025.

Share Price

The share price exhibited significant volatility, starting at $164.13 in 2020 and nearly doubling to $294.82 in 2021. Subsequently, it declined to $217.98 in 2022 before recovering somewhat to $254.73 in 2023 and further increasing to $305.02 in 2024. However, the price dropped noticeably to $225.73 in 2025. This pattern indicates periods of both strong investor optimism and correction phases, suggesting fluctuating market perceptions and external factors impacting the stock.

Book Value per Share (BVPS)

The book value per share showed a consistent upward trajectory throughout the period. It increased steadily from $69.84 in 2020 to $119.01 in 2025, reflecting a continuous improvement in the company’s net asset value on a per-share basis. This growth suggests effective capital management and retention of earnings, contributing to enhanced intrinsic value over time.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio demonstrated considerable fluctuation, starting at 2.35 in 2020 and peaking at 3.26 in 2021, coinciding with the peak in share price. This elevated ratio indicates that the market was valuing the stock at a substantial premium relative to its book value during that year. The ratio then declined steadily to 2.27 in 2022 and held moderate levels around 2.45 and 2.7 in 2023 and 2024 respectively, before dropping sharply to 1.9 in 2025. This decline in P/BV in 2025 may reflect a relative undervaluation of the stock or a reassessment of growth prospects by investors.

In summary, while the fundamental book value showed stable growth, share price movements were more volatile, leading to fluctuations in valuation multiples. The recent decline in the P/BV ratio in 2025 alongside a lower share price could indicate potential market concerns or adjustments, despite the company’s improving book value per share.