NYSE: FDXF · Cargo Ground Transportation
FedEx Freight
FedEx Freight Holding says it is the largest less-than-truckload (LTL) freight carrier in North America, with more than 26,000 service center doors covering 98% of U.S. ZIP codes. FedEx spun it off on June 1, 2026 by distributing 80.1% of its shares, and it trades on the NYSE as FDXF. Fiscal 2026 (to May) revenue was $8,795 million. Operating income fell 62% to $540 million, mainly on spin-off-related costs and weaker demand. Before the spin it borrowed about $4.3 billion and paid FedEx a $4.1 billion cash distribution, leaving a stockholders' deficit of $497 million. It is moving to a December fiscal year-end.
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 24, 2026 09:22 (SEC EDGAR) · Source 10-K filed: August 5, 2026
Built on10-K FY2026 · filed 2026-08-0510-Q (quarter ended 2026-09-30) · filed 2026-10-29
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- -3.4%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 6.1%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +6.5 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 4.0x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 0.25x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- —
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 29.7x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.38
Higher than 2% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 18% of 311 non-financial companies
Latest fiscal year (FY2026)
Higher than 62% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 81% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 1% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; fiscal FY2026
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$130.20close on 2026-11-04
Market cap$19.47B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 29.7x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- —
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 22.5x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- -1.1%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- —
At FY2026 year-end: 36.6x
Earnings: fiscal FY2026
At FY2026 year-end: —
Book value at FY2026 year-end
At FY2026 year-end: 26.8x
EBITDA for FY2026
At FY2026 year-end: -0.9%
Free cash flow for FY2026
Dividends per share for FY2026
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$2.26B → $2.44B (vs. a year earlier)↑ +8.1%$2.26B → $2.44B (vs. a year earlier)
- Operating margin12.8% → 10.4% (vs. a year earlier)↓ −2.5 pts12.8% → 10.4% (vs. a year earlier)
- Net income$291M → $147M (vs. a year earlier)↓ −49.5%$291M → $147M (vs. a year earlier)
- Diluted EPS$1.95 → $0.98 (vs. a year earlier)↓ −49.7%$1.95 → $0.98 (vs. a year earlier)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
04
Company profileFrom SEC dataShow
- Legal name
- FedEx Freight Holding Company, Inc.
- Headquarters
- MEMPHIS, TN
- Incorporated in
- Delaware
- Fiscal year end
- 05/31
- Exchange & ticker
- NYSE: FDXF
- Industry
- Cargo Ground Transportation
- CIK
- 2082247
Workforce (as of FY2026 year-end)
Employees
40,000
Source: Form 10-K (FY2026) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2027
No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around May 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 29–67 days after quarter end over the last 2 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2027 | Sep 30, 2026 | Oct 29, 2026 (+29 days) | Oct 29, 2026 10-Q (+29 days) |
| Q4 FY2026 | May 31, 2026 | Aug 6, 2026 (+67 days) | Aug 5, 2026 10-K (+66 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
LTL
FedEx Freight Priority and Economy
Priority service when speed is critical; economy when time can be traded for savings.
Specialized
FedEx Custom Critical and LTL Select
Expedited and specialized freight operations transferred with the business.
From the FY2026 Form 10-K.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
LTL freight
North American less-than-truckload carriers
U.S. share
—
Not disclosedWorldwide share
—
Not disclosedNorth America
Largest
Company-disclosed“The largest North American less-than-truckload (‘LTL’) freight carrier.”
07
Recent strategic focusSite analysis
Recent developments.
First results as a standalone company
FedEx Freight is moving to calendar-year reporting and reported a one-time four-month transition period (June–September 2026): revenue $3.3B (+9.2%), operating income $383M (−6.1%; adjusted +16.4%), diluted EPS $1.54 (adjusted $2.15). Average daily shipments fell 1.4% while revenue per shipment rose 10.1%, and the claims ratio hit a record low.
Source: Earnings release for the four months ended September 30, 2026
Spin-off
Became an independent public company on June 1, 2026; regular-way NYSE trading began the same day.
Source: Form 8-K 2026-06-01
Management
Terminated EVP Michael Lyons on September 2, 2026 after an internal investigation found a Code of Conduct violation unrelated to financial reporting.
Source: Form 8-K 2026-09-02
Governance
First annual meeting set for May 5, 2027.
Source: Form 8-K 2026-10-02
Capex ÷ D&A (FY2026)
0.74x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$379M ÷ $512M = 0.74x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Where the money goes, over time
Unit: $M. Capex went from $461M in FY2024 to $379M in FY2026
- Capex
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-05
08
Key figures at a glanceFrom SEC data
FY2024–FY2026, 3 years.
Revenue (FY2026)
$8.8B
As reported in the 10-K
Revenue CAGR (2 years)
-3.4%▼caution
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($8,795M ÷ $9,424M) ^ (1÷2) − 1 = -3.4%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2026)
6.1%▼caution
-12.5pt vs. 2 years ago
formulaoperating income ÷ revenue × 100
e.g.$540M ÷ $8,795M × 100 = 6.1%
ROE (FY2026)
—▼caution
3-year average: 66.9%
As reported in the 10-K
P/B (FY2026 end)
—
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2026 end)
26.8x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($23,976M + $4,484M − $251M) ÷ ($540M + $512M) = 26.8x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▼
Revenue grew -3.4% a year over 2 years (a shrinking trend)
From $9.42B in FY2024 to $8.8B in FY2026. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 18.6% → 6.1%
How much operating profit is left per $100 of revenue. It moved -12.5 points over 2 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is -7.2% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ―
Free cash flow was positive in 2 of 3 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 66.9% over 3 years (latest: —)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
- FedEx Corporation
07 · what it does
Key activities
- LTL pickup, line-haul and delivery
- Priority and economy services
- Specialized services, including FedEx Custom Critical
06 · what it draws on
Key resources
- About 40,000 employees
- More than 26,000 service center doors
- Vehicles, trailers and dock equipment ($6.7B gross property)
02 · why customers buy
Value propositions
- LTL freight across North America with a dual-service offering (priority and economy).
04 · how it keeps them
Customer relationships
- Commercial initiatives to improve customer support, reduce cargo claims and offer flexible service options.
03 · how it reaches them
Channels
- A dedicated LTL sales organization and online tools for managing shipments.
01 · who it serves
Customer segments
- Shippers of palletized freight; top five customers were 9% of 2026 revenue
09 · where money goes
Cost structure
FY2026, share of revenue ($8.8B)
- Other operating costs (incl. cost of goods sold)93.9%
Operating profit left: 6.1% of revenue. Depreciation & amortization (inside the costs above): $512M. Capital spending: $379M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- LTL freight services $8,795M (FY2026)
Value propositions, channels and customer relationships: Form 10-K (FY2026)
Collects shipments from many customers, routes them through service centers and hubs, and delivers them across North America, with priority and economy service options.
01 what it draws on
Inputs & resources
- About 40,000 employees
- More than 26,000 service center doors
- Vehicles, trailers and dock equipment ($6.7B gross property)
02 what it does
Activities
- LTL pickup, line-haul and delivery
- Priority and economy services
- Specialized services, including FedEx Custom Critical
03 who it serves
Customers
- Shippers of palletized freight; top five customers were 9% of 2026 revenue
04 how money comes in
How it earns
- LTL freight services $8,795M (FY2026)
How the business makes money
- Largest customer was about 4% of 2026 revenue; top 25 were 21%.
- Covers 98% of U.S. ZIP codes (excluding military and PO ZIP codes).
- Over 1,500 employees transferred from FedEx as part of the spin-off.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
FedEx Freight is affected by tariffs and benefits from the EPA’s GHG rescission.
Trade & export rules
Tariffs and demand
Shipments fell 4% in 2026 on macro conditions including trade policy.
Constrains the businessTouches: CustomersSource: Form 10-K (FY2026)
Environmental rules
GHG Endangerment rescission
The EPA rescinded its 2009 Endangerment Finding in February 2026.
Supports the businessTouches: ActivitiesSource: Form 10-K (FY2026)
Revenue by segment (FY2026)
Unit: $M — bar length = revenue, (%) = share of total company revenue
FedEx Freight (LTL)
8,795 (100%)
Source: Form 10-K (FY2026, year ended 2026-05-31) One reportable segment.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Alliances & capital tiesSite analysisShow
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Capital tie / equity stake
FedEx Corporation
Former parent; distributed 80.1% of FedEx Freight shares to its stockholders on June 1, 2026.
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
LTL shippers across North America.
Named by the company
No customer is named; the largest was about 4% of 2026 revenue.
What the filings disclose
Suppliers
Vehicle, trailer and fuel suppliers; FedEx provides transition services.
Named by the company
No supplier is named.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Competitors include local, regional and national LTL carriers, publicly listed national-scale LTL carriers, truckload and small-package carriers, private fleets, railroads, air freight carriers, 3PLs and digital freight platforms; none is named.
Competitors named in the 10-K
No competitor is named in the 10-K.
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-05
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-05
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-05
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-05
| Line item | FY2024In next year’s 10-K | FY2025In next year’s 10-K | FY202610-K on EDGAR ↗ |
|---|---|---|---|
| Income statement ($M) | |||
| Revenue | 9,424 | 8,892 | 8,795 |
| Operating income | 1,753 | 1,404 | 540 |
| Pretax income | 2,079 | 1,802 | 884 |
| Net income (attributable) | 1,574 | 1,346 | 655 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | -5.6% | -1.1% |
| Operating margincalcoperating income ÷ revenue × 100 | 18.6% | 15.8% | 6.1% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 16.7% | 15.1% | 7.4% |
| Balance sheet ($M) | |||
| Total assets | — | 5,022 | 6,884 |
| Total equity | 2,124 | 2,393 | -497 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | — | 66 | 4,484 |
| Equity ratio | — | 47.7% | -7.2% |
| ROE | 74.1% | 59.6% | — |
| Cash flow ($M) | |||
| Operating CF | 1,541 | 1,531 | 167 |
| Investing CF | -403 | -385 | -363 |
| Financing CF | -1,126 | -1,140 | 335 |
| Free cash flowcalccash flow from operations − capital expenditures | 1,080 | 1,094 | -212 |
| Cash and equivalents | — | 109 | 251 |
| Per share & other | |||
| EPS ($) | 10.53 | 9.00 | 4.38 |
| BVPS ($) | — | — | -3.32 |
| P/E (x) | — | — | 36.6 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | — | — | 26.8 |
Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 2 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $2.44B+8.1% | $253M-12.8% | $147M-49.5% | $0.98 |
| 2025-09-30 | $2.26B | $290M | $291M | $1.95 |
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2026)
12.6%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$540M × (1 − 25%) ÷ $3,223M × 100 = 12.6%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
6.08%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $23.98B ÷ ($23.98B + $4.48B) = 84.2%
e.g.Debt weight: $4.48B ÷ ($23.98B + $4.48B) = 15.8%
e.g.WACC: 7.0% × 84.2% + 1.3% × (1 − 25%) × 15.8% = 6.08%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 5.0%–7.5% and ROIC − WACC runs +5.1 to +7.6 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 6.08% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.38 (price-derived adjusted beta, but correlation with the market is low (R² 0.00), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 7.04%
- Cost of debt
- 1.27%
- Tax rate
- 25% (effective rate, FY2024–FY2026)
- Capital structure (equity : debt)
- 84% : 16%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 6.08%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.38 (price-derived adjusted beta. Raw β 0.07, R² 0.00, 21 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.070 + 0.33 = 0.377
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.38 × 5.5% = 7.0%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Not enough data for this calculation (FY2026): it needs positive free cash flow, a fiscal year-end P/E, and a positive enterprise value.
17
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- !
Operating CF ÷ net income: averages 0.79x
Cash coming in trails reported profit. Worth checking for rising receivables/inventory or one-off gains.
- !
Accrual ratio (latest): 8.2%
A larger share of profit is non-cash accruals, which research associates with profit that tends to fade in later periods.
- !
Core-earnings share (operating income ÷ pretax income): 61%
Non-operating items (interest income, equity-method gains, other income/expense) are having a bigger effect.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-05
Profit bridge (FY2026)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-08-05
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$167M ÷ $655M = 0.25x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$540M ÷ $884M × 100 = 61%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($132M + $1,154M) ÷ 2 ÷ $8,795M × 365 = 27 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
18
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 60.9%
- Directors & officers (shares)
- —
- Everyone else (est.)
- 39.1%
- Directors & officers (voting power)
- —
- Institutional-ownership rank
- 406 of 416
- Beta (adjusted)
- 0.38
individuals and other non-13F holders
no proxy statement yet
1 = most institutional; 97% of covered companies have more
above 1 = swings more than the market
- 91.0M shares reported by 1,130 13F filers ÷ 149.5M shares outstanding on 2026-08-03. Option positions are excluded.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form 10-K cover page (shares outstanding as of 2026-08-03)
19
Strengths & weaknessesSite analysis
Strengths
1. Scale leader in LTL
Largest LTL carrier in North America with more than 26,000 service center doors.
Evidence: Form 10-K FY2026
2. Diversified customers
Largest customer about 4% of 2026 revenue.
Evidence: Form 10-K FY2026
Weaknesses
1. New leverage
About $4.3B of debt (senior notes and a term loan) at a 4.79% weighted-average rate and a $497M stockholders' deficit at May 31, 2026; long-term debt was still $4.38B at September 30, 2026.
Evidence: Form 10-K FY2026; Form 10-Q (quarter ended 2026-09-30)
2. Falling profitability
Operating income fell from $1,753M (FY2024) to $540M (FY2026).
Evidence: SEC EDGAR XBRL
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2026)
36.6x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2026)
—
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2026)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2026)
-0.9%
(Operating CF − capex) ÷ market cap
1. Market leadership
Largest LTL carrier in North America, with industry-leading transit times according to the company.
- What has to hold
- Industrial freight demand recovers.
- The other side
- Leverage and stand-alone costs.
Evidence: Form 10-K FY2026
2. Pure-play LTL
Now valued separately from FedEx's parcel network.
- What has to hold
- Independence improves focus.
- The other side
- Loss of shared FedEx services.
Evidence: Form 10-K FY2026
Fiscal 2024–2026 are carve-out results of the business while owned by FedEx; per-share figures for those years use the spin-off share count. Equity turned negative after the $4.1B cash distribution to FedEx before the spin-off.
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2026)
Cash & short-term investments ÷ debt due within a year
5.8x
$251M vs. $43M
Interest coverage (operating income ÷ interest expense)
9.5x
$540M vs. $57M
Free cash flow ÷ dividends paid
-4.4x
−$212M vs. $48M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -5.6% in FY2025 ($9.42B → $8.89B) | Not yet, as of FY2026 |
| Operating income | -61.5% in FY2026 ($1.4B → $540M) | Not yet, as of FY2026 |
Covers only the 3 fiscal years on record (FY2024–FY2026), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Diversified customer base
No customer above about 4% of revenue.
Source: Form 10-K FY2026
Credit facility
A $1.2B revolving credit facility.
Source: Form 10-K FY2026
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
FedEx Freight reports ordinary-course wage-and-hour class actions and vehicle-accident claims, not expected to be material. Its guarantees of FedEx's debt were released at the spin-off, except one that FedEx indemnifies.
Company statement: Management expects the aggregate liability from ordinary-course actions not to be material.
Based on Form 10-Q (quarter ended 2026-09-30) — Contingencies, reviewed 2026-10-24. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Demand & macro
Industrial freight demand
- Company disclosure (summarized from the 10-K)
- Reduced demand cut fiscal 2026 results; volumes depend on industrial and economic activity.
- Company’s stated mitigation
- Pricing actions.
- This site’s assessment
- Impact High / Likelihood Med
- 2Competition & technology shift
Competition
- Company disclosure (summarized from the 10-K)
- Competes with national and regional LTL carriers, truckload and parcel carriers, private fleets, brokers and digital freight platforms; some may operate at little or no margin to gain share.
- Company’s stated mitigation
- Network scale and service levels.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Funding & liquidity
Debt service
- Company disclosure (summarized from the 10-K)
- About $4.3B of new debt could limit flexibility and requires interest payments.
- Company’s stated mitigation
- $1.2B revolving credit facility.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Governance & key people
Stand-alone transition
- Company disclosure (summarized from the 10-K)
- Must build functions previously provided by FedEx; conflicts could arise under separation agreements with FedEx.
- Company’s stated mitigation
- Transition services agreements.
- This site’s assessment
- Impact Med / Likelihood Med
- 5Costs & inflation
Fuel, labor and equipment costs
- Company disclosure (summarized from the 10-K)
- Diesel prices, wages and the cost of vehicles and service centers affect margins.
- Company’s stated mitigation
- Fuel surcharges.
- This site’s assessment
- Impact Med / Likelihood Med
24
What to watch going forwardSite analysis
- Margin recovery after spin-off costs in fiscal 2026.
- Initiation of a regular dividend, which the company says it expects in the foreseeable future.
- Transition period June 1–December 31, 2026 before calendar-year reporting.
25
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 24, 2026 09:22 (SEC EDGAR) · Source 10-K filed: August 5, 2026
Built on10-K FY2026 · filed 2026-08-05
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent FedEx Freight’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.