The Company in a Nutshell
- A rocky road lies ahead with intensive competition showing up.
- EXPD now has regional offices around the world with business partners on all continents.
- Betting on technology might be the key to success for the transportation business.
- We do not cover Expeditors International of Washington at the moment.
Date Reviewed | N/A |
Company Name | Expeditors International of Washington Inc |
Symbol | EXPD |
Sector | Industrials |
Industry | Integrated Freight & Logistics |
Beta | 0.958 |
PRO Rating | 3 |
Dividend Safety | 4 |
Business Model
Expeditors International of Washington, Inc. provides a full suite of global logistics services, offers customers an international network of people and integrated information systems to support the movement and strategic positioning of goods. As a third-party logistics provider, the Company purchases cargo space from carriers, such as airlines, ocean shipping lines and trucking lines, on a volume basis and resells that space to its customers. The Company provides a range of transportation services and customer solutions, such as customs brokerage, order management, time-definite transportation, warehousing and distribution, temperature-controlled transit, cargo insurance, specialized cargo monitoring and tracking, and other customized logistics and consulting solutions. In addition, its Project Cargo unit handles special project shipments that move via a single method or combination of air, ocean, and/or ground transportation.
Current price | 123.19 |
ROE | 27.40 % |
ROIC | 49.55 % |
Shareholder Yield | -0.20 % |
5-Yr Total Return | 80.05 % |
1-Yr Total Return | 10.70 % |
Next Earnings Date | 11-05-24 |
Latest Quarter Information
What the CEO said:
We continued to adapt well to another erratic quarter for our industry, which has been impacted by the rapid changes and imbalances in buy versus sell rates, particularly on exports out of Asia. Air market capacity has been constrained by e-commerce demand, and ocean routing has been significantly disrupted by geopolitical events in the Red Sea, causing less frequent services due to blank sailings, longer transit times as well as port congestion. We have continued to adjust to the disruptions and uneven demand, keeping costs in check while we work to bring efficiency back in line with historical expectations.
What we say:
09-02-2024, Q2 was marked by limited air market capacity and disruption in ocean shipping routes from geopolitical events in the Red Sea. EXPD witnessed air tonnage improvement of 15%, higher expenses compared to the 30% efficiency target, as well as, higher buy rates. The company's reported Q2 net earnings decreased by 5% Y/Y to $1.24/ diluted share, operating income decreased by 10% to $224M, but revenues increased by 9% to $2.4B. Q2 airfreight tonnage volume grew 15% but ocean container volume decreased by 3%. EXPD generated $126M+ in cash flow from operations and returned $205M to shareholders via repurchases in Q2.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 2.70 % |
5-Yr EPS Growth | 7.55 % |
5-Yr Div Growth | 8.90 % |
Potential Risks
Debt/Equity | 0.00 |
Financial Debt to EBITDA (TTM) | 0.00 |
Current Ratio (Quarterly) | 2.00 |
Credit Score | 100 |
Dividend Growth Perspective
Dividend ($) | 0 |
Dividend Yield Fwd | 1.15 % |
Dividend Frequency | Semi-annual |
Average 5-Yr Yield | 1.10 % |
Payout Ratio (%) | 26.85 |
Cash Payout Ratio (%) | 29.10 |
DGR 1-Yr | 5.80 |
DGR 3-Yr | 9.90 |
DGR 5-Yr | 8.90 |
DGR Streak | 29 |
Chowder Score | 10.10 |
Next DVD PMT | 06-17-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 17 B |
PE Ratio | 26.45 |
Fwd PE | 23.60 |
Price to Book Ratio | 7.95 |
DDM Valuation | N/A |
Average 5-Yr PE | 19.63 |
Value Score | 25 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.