FedExFDX -0.13%83 ROE % is 14.58% as of Feb. 2026, which is 6% below its 10-year median of 15.58. 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 991 Transportation companies, FedEx ranks better than 79.21% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. FedEx's annualized net income for the quarter that ended in Feb. 2026 was $4,224 Mil. FedEx's average Total Stockholders Equity over the quarter that ended in Feb. 2026 was $28,972 Mil. Therefore, FedEx's annualized ROE % for the quarter that ended in Feb. 2026 was 14.58%.
The historical rank and industry rank for FedEx's ROE % or its related term are showing as below:
FDX'
s ROE % Range Over the Past 10 Years
Min: 2.91 Med: 15.58 Max: 25.77
Current: 15.96
During the past 13 years, FedEx's highest ROE % was 25.77%. The lowest was 2.91%. And the median was 15.58%.
FDX's ROE % is ranked better than 79.21% of 991
companies
in the Transportation industry
Industry Median: 7.6
vs FDX: 15.96
FedEx (NYSE:FDX) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
FedEx ROE % Related Terms
FedEx ROE % Historical Data
* Premium members only.
The historical data trend for FedEx's ROE % 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.
For the Integrated Freight & Logistics subindustry, FedEx's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Transportation Industry
For the Transportation industry and Industrials sector, FedEx's ROE % distribution charts can be found below:
* The bar in red indicates where FedEx's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
FedEx (FDX) has a ROE % of 14.58% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on FedEx and its competitors. This is near median its historical median of 15.58. Over the past decade, FedEx's ROE % has ranged from 2.91 to 25.77. According to the industry distribution chart, FedEx ranks #206 out of 991 companies in the Transportation industry, placing it in the top 20.8%.
Is FedEx's ROE % too high?
FedEx's current ROE % of 14.58% is near median its 10-year median of 15.58. Over the past 10 years, this metric has ranged from a low of 2.91 to a high of 25.77. The Transportation industry median ROE % is 7.60. FedEx's value of 14.58% is 91.8% above this industry median. Based on the distribution chart, FedEx ranks #206 out of 991 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 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does FedEx's ROE % compare to UPS and JBHT?
According to the Transportation industry distribution chart, FedEx ranks #206 out of 991 companies for ROE %. This places FedEx in the top 21% of its industry — outperforming the majority of peers. The industry median ROE % is 7.60. FedEx's value of 14.58% is 91.8% above this benchmark. Historically, FedEx's own ROE % has ranged from 2.91 to 25.77 over the past decade. While the company's 10-year median is 15.58 vs. the industry median of 7.60, 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 ROE % for a Transportation company?
The median ROE % among Transportation companies is 7.60, based on 991 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FedEx's current ROE % of 14.58% is 91.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on FedEx and its competitors. For the Transportation industry, the median ROE % is 7.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FedEx's current ROE % is 14.58%, which is near median its own 10-year median of 15.58. 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 $316.83 — trading 36.8% above its estimated fair value. The current ROE % is 14.58%, which is near median its 10-year median of 15.58 and 91.8% above the Transportation industry median of 7.60. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For FedEx (FDX), the current ROE % is 14.58% 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 $316.83 is trading 36.8% above its estimated GF Value™ of $231.61.
GuruFocus considers FedEx to be Significantly Overvalued.
Key valuation signals for FDX:
ROE %: 14.58% (near median its 10-year median of 15.58)
GF Value™: $231.61 vs. price of $316.83 (36.8% above fair value)
Industry Position: 91.8% above the Transportation median (#206 of 991)
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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