FedEx Freight Holding Company, Inc. (FDXF) AI Stock Analysis

FedEx Freight Holding Company, Inc. operates FedEx Freight, one of the leading less-than-truckload (LTL) carriers in North America. LTL carriers transport palletized and other business shipments that are too large for parcel networks but too small to fill an entire truck, consolidating freight from multiple customers onto the same trailer. The company provides priority and economy LTL shipping alongside related freight services to commercial customers. Its operations are backed by a network of service centers, trucks, and trailers throughout North America. The business became an independent publicly traded company following its spin-off from FedEx Corporation on June 1, 2026.

The 3-year revenue CAGR was -4.5%, with annual sales decreasing from $10.08B in FY2023 to $9.42B in FY2024, $8.89B in FY2025, and $8.79B in FY2026. Operating margin compressed from 18.8% in FY2023 to 6.1% in FY2026, while annual net income fell from $1.58B to $655.0M over the same period. Gross margin was reported at 100.0% in FY2026 compared to 36.1% in FY2023. For the latest quarter ended May 31, 2026, revenue increased 4.8% year-over-year, but quarterly earnings declined 61.1% year-over-year, contributing to a trailing twelve-month operating margin of -5.8%.

As of May 31, 2026, the company held $251.0M in cash and short-term investments against total debt of $6.37B, resulting in net debt of $6.11B. Total assets stood at $6.88B, and shareholders' equity was -$497.0M, reflecting negative equity. The company reported a current ratio of 1.52. In FY2026, operating cash flow dropped to $167.0M, while capital expenditures reached $379.0M, leading to free cash flow of -$212.0M.

FDXF trades at a trailing P/E of 25.8x, below the 28.5x median of its S&P 500 Industrials peers. Its forward P/E of 22.2x sits above the peer median of 20.1x, while its price-to-sales multiple of 1.9x is lower than the peer median of 3.3x. Enterprise value stands at $23.94B with an EV/EBITDA multiple of 17.2x, compared to the peer median of 17.7x. At the last close of $113.21 on October 16, 2026, the stock trades near its 52-week low of $105.75 and below its 52-week high of $200.00, whereas the S&P 500 benchmark gained 16.8% over the past year.

Wall Street analysts hold 6 Strong Buy, 3 Buy, and 5 Hold ratings on FDXF, with zero Sell or Strong Sell ratings. The mean price target of $146.50 represents a 29.4% premium over the last close of $113.21. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $4.68 and revenue of $9.12B. For the subsequent fiscal year, 4 analysts forecast EPS to rise 11.8% to $5.24 on 2.2% revenue growth to $9.33B. The next earnings date is October 29, 2026.

This page is an AI-written research summary of FedEx Freight Holding Company, Inc. (FDXF). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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