FedExFDX -0.17%83 Interest Coverage is 11.70 as of Feb. 2026, which is 42% above its 10-year median of 8.24. GuruFocus rates FDX with a GF Score™ of 83/100 and a GF Value™ of $231.61 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 846 Transportation companies, FedEx ranks better than 70.8% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. FedEx's
Operating Income
for the
three
months ended in Feb. 2026 was $1,615 Mil. FedEx's Interest Expense for the
three
months ended in Feb. 2026 was $-138 Mil.
FedEx's interest coverage for the quarter that ended in Feb. 2026 was 11.70.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for FedEx's Interest Coverage or its related term are showing as below:
FDX'
s Interest Coverage Range Over the Past 10 Years
Min: 4.24 Med: 8.24 Max: 12.53
Current: 12.53
FDX's Interest Coverage is ranked better than 70.8% of 846
companies
in the Transportation industry
Industry Median: 5.67
vs FDX: 12.53
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
FedEx Interest Coverage Related Terms
FedEx Interest Coverage Historical Data
* Premium members only.
The historical data trend for FedEx's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FDX vs UPS, JBHT, FDXFw: Interest Coverage Comparison
For the Integrated Freight & Logistics subindustry, FedEx's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
FedEx Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, FedEx's Interest Coverage distribution charts can be found below:
* The bar in red indicates where FedEx's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FedEx (FDX) has a Interest Coverage of 11.70 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on FedEx and its competitors. This is 42% above median its historical median of 8.24. Over the past decade, FedEx's Interest Coverage has ranged from 4.24 to 12.53. According to the industry distribution chart, FedEx ranks #247 out of 846 companies in the Transportation industry, placing it in the top 29.2%.
Is FedEx's Interest Coverage too high?
FedEx's current Interest Coverage of 11.70 is 42% above median its 10-year median of 8.24. Over the past 10 years, this metric has ranged from a low of 4.24 to a high of 12.53. The Transportation industry median Interest Coverage is 5.67. FedEx's value of 11.70 is 106.3% above this industry median. Based on the distribution chart, FedEx ranks #247 out of 846 companies in the Transportation industry, which is above the industry midpoint. Overall, FedEx has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does FedEx's Interest Coverage compare to UPS and JBHT?
According to the Transportation industry distribution chart, FedEx ranks #247 out of 846 companies for Interest Coverage. This puts FedEx in the upper half of its industry. The industry median Interest Coverage is 5.67. FedEx's value of 11.70 is 106.3% above this benchmark. Historically, FedEx's own Interest Coverage has ranged from 4.24 to 12.53 over the past decade. While the company's 10-year median is 8.24 vs. the industry median of 5.67, FedEx has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.67, based on 846 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FedEx's current Interest Coverage of 11.70 is 106.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on FedEx and its competitors. For the Transportation industry, the median Interest Coverage is 5.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FedEx's current Interest Coverage is 11.70, which is 42% above median its own 10-year median of 8.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FedEx stock overvalued right now?
Based on GuruFocus' analysis, FedEx (FDX) is currently considered Significantly Overvalued. The stock's GF Value™ is $231.61, compared to a current price of $316.69 — trading 36.7% above its estimated fair value. The current Interest Coverage is 11.70, which is 42% above median its 10-year median of 8.24 and 106.3% above the Transportation industry median of 5.67. FedEx's overall GF Score™ is 83/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For FedEx (FDX), the current Interest Coverage is 11.70 as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is FedEx (FDX) Overvalued in 2026?
Based on GuruFocus' analysis, FedEx stock appears to be overvalued.
The current stock price of $316.69 is trading 36.7% above its estimated GF Value™ of $231.61.
GuruFocus considers FedEx to be Significantly Overvalued.
Key valuation signals for FDX:
Interest Coverage: 11.70 (42% above median its 10-year median of 8.24)
GF Value™: $231.61 vs. price of $316.69 (36.7% above fair value)
Industry Position: 106.3% above the Transportation median (#247 of 846)
No single metric tells the full story. See the FDX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FedEx pioneered overnight delivery in 1973 and remains the world's largest express package provider. Following the June 2026 spinoff of FedEx Freight (less-than-truckload shipping), the firm's Federal Express segment—which houses the core package delivery operations—makes up more than 95% of total revenue (previously 87%). The remainder stems from other services, including FedEx Office, which provides document production/shipping, and FedEx Logistics, which provides global forwarding. FedEx acquired Dutch parcel delivery firm TNT Express in 2016, boosting its presence across Europe. TNT was previously the fourth-largest global parcel delivery provider.
83GF Score
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