FedExXSWX:FDX -0.03%83 Return-on-Tangible-Equity is 18.60% as of Feb. 2026, which is 13% below its 10-year median of 21.32. GuruFocus rates XSWX:FDX with a GF Score™ of 83/100 and a GF Value™ of CHF191.07. The stock has 9 warning signs investors should review. Among 975 Transportation companies, FedEx ranks better than 79.9% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. FedEx's annualized net income for the quarter that ended in Feb. 2026 was CHF3,265 Mil. FedEx's average shareholder tangible equity for the quarter that ended in Feb. 2026 was CHF17,552 Mil. Therefore, FedEx's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 18.60%.
The historical rank and industry rank for FedEx's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:FDX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.82 Med: 21.32 Max: 44.93
Current: 20.85
During the past 13 years, FedEx's highest Return-on-Tangible-Equity was 44.93%. The lowest was 4.82%. And the median was 21.32%.
XSWX:FDX's Return-on-Tangible-Equity is ranked better than 79.9% of 975
companies
in the Transportation industry
Industry Median: 9
vs XSWX:FDX: 20.85
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
FedEx Return-on-Tangible-Equity Related Terms
FedEx Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for FedEx's Return-on-Tangible-Equity 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.
XSWX:FDX vs UPS, JBHT, FDXF: Return-on-Tangible-Equity Comparison
For the Integrated Freight & Logistics subindustry, FedEx's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Transportation Industry
For the Transportation industry and Industrials sector, FedEx's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where FedEx's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 18.60% mean?
FedEx (XSWX:FDX) has a Return-on-Tangible-Equity of 18.60% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on FedEx and its competitors. This is 13% below median its historical median of 21.32. Over the past decade, FedEx's Return-on-Tangible-Equity has ranged from 4.82 to 44.93. According to the industry distribution chart, FedEx ranks #196 out of 975 companies in the Transportation industry, placing it in the top 20.1%.
Is FedEx's Return-on-Tangible-Equity too high?
FedEx's current Return-on-Tangible-Equity of 18.60% is 13% below median its 10-year median of 21.32. Over the past 10 years, this metric has ranged from a low of 4.82 to a high of 44.93. The Transportation industry median Return-on-Tangible-Equity is 9.00. FedEx's value of 18.60% is 106.7% above this industry median. Based on the distribution chart, FedEx ranks #196 out of 975 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, FedEx has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does FedEx's Return-on-Tangible-Equity compare to UPS and JBHT?
According to the Transportation industry distribution chart, FedEx ranks #196 out of 975 companies for Return-on-Tangible-Equity. This places FedEx in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.00. FedEx's value of 18.60% is 106.7% above this benchmark. Historically, FedEx's own Return-on-Tangible-Equity has ranged from 4.82 to 44.93 over the past decade. While the company's 10-year median is 21.32 vs. the industry median of 9.00, 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 Return-on-Tangible-Equity for a Transportation company?
The median Return-on-Tangible-Equity among Transportation companies is 9.00, based on 975 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FedEx's current Return-on-Tangible-Equity of 18.60% is 106.7% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on FedEx and its competitors. For the Transportation industry, the median Return-on-Tangible-Equity is 9.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FedEx's current Return-on-Tangible-Equity is 18.60%, which is 13% below median its own 10-year median of 21.32. 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?
FedEx (XSWX:FDX) has a current Return-on-Tangible-Equity of 18.60%. The stock's GF Value™ is CHF191.07, compared to a current price of CHF262.94 — trading 37.6% above its estimated fair value. The current Return-on-Tangible-Equity is 18.60%, which is 13% below median its 10-year median of 21.32 and 106.7% above the Transportation industry median of 9.00. FedEx's overall GF Score™ is 83/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For FedEx (XSWX:FDX), the current Return-on-Tangible-Equity is 18.60% 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 (XSWX:FDX) Overvalued in 2026?
Based on GuruFocus' analysis, FedEx stock appears to be overvalued.
The current stock price of CHF262.94 is trading 37.6% above its estimated GF Value™ of CHF191.07.
Key valuation signals for XSWX:FDX:
Return-on-Tangible-Equity: 18.60% (13% below median its 10-year median of 21.32)
GF Value™: CHF191.07 vs. price of CHF262.94 (37.6% above fair value)
Industry Position: 106.7% above the Transportation median (#196 of 975)
No single metric tells the full story. See the XSWX: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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