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Expeditors International of Washington (EXPD) is back in focus after recent commentary highlighted flat sales over five years and margin pressure from higher input costs. That record has sharpened attention on the stock's current valuation.
See our latest analysis for Expeditors International of Washington.
Over the past year, Expeditors International of Washington has seen its share price return improve, with a 90 day share price return of 14.03% and a 1 year total shareholder return of 47.97%. This points to stronger recent momentum despite some shorter term weakness.
If recent moves in Expeditors have you reassessing the logistics space, it can be useful to widen the lens and look at companies exposed to automation trends through our 36 robotics and automation stocks
Expeditors International of Washington has a long established role in global freight, yet the share price has surged while sales have stayed flat and margins feel cost pressure. Is this still a strong business at a stretched price, or not?
On a P/E of 26.3x at a last close of $167.89, Expeditors International of Washington looks expensive compared with logistics peers and the wider industry.
The P/E ratio compares the current share price with earnings per share. For a logistics company like Expeditors International of Washington, it reflects how much investors are paying for each dollar of current earnings in a sector where growth is often steady rather than rapid.
Here, the market is assigning Expeditors International of Washington a P/E of 26.3x, while the Global Logistics industry average sits at 15.5x and the peer average is 19.2x. The stock also trades above an estimated fair P/E of 19.1x. This is a level the market could potentially move toward if expectations around earnings or growth reset.
Explore the SWS fair ratio for Expeditors International of Washington
Result: Price-to-earnings of 26.3x (OVERVALUED)
However, Expeditors International of Washington still faces risks if margin pressure persists or if the current P/E multiple contracts toward peer and industry levels.
Find out about the key risks to this Expeditors International of Washington narrative.
While the P/E of 26.3x makes Expeditors International of Washington look expensive, the SWS DCF model points in the other direction. In this view, the stock at $167.89 sits about 3.1% below an estimated future cash flow value of $173.33. Which signal do you put more weight on?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Expeditors International of Washington for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 55 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
The mixed signals around Expeditors International of Washington can feel confusing. Check the numbers yourself and move quickly to shape your own view by reviewing the 2 key rewards.
If Expeditors International of Washington has you thinking harder about price, quality and risk, then it makes sense to line it up against fresh ideas on the same screen.
Target potential mispricing by scanning a curated list of 55 high quality undervalued stocks so you are not relying on just one stock to carry your thesis.
Strengthen your income stream by weighing Expeditors against companies in the 9 dividend fortresses that already offer sizeable yields backed by underlying businesses.
Prioritise resilience by comparing this stock with companies in the 81 resilient stocks with low risk scores and see which profiles fit your comfort level before the next big move in the market.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include EXPD.
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