Expeditors International Of Washington Inc (NYSE: EXPD)

Sector: Industrials Industry: Integrated Freight & Logistics CIK: 0000746515
Market Cap 22.29 Bn
P/B 8.95
P/E 27.40
P/S 2.13
ROIC (Qtr) 29.32
Div Yield % 1.45
Rev 1y % (Qtr) -3.51
Total Debt (Qtr) 560.36 Mn
Debt/Equity (Qtr) 0.25
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About

Expeditors International of Washington, Inc., often referred to as Expeditors, operates in the logistics services industry and offers a comprehensive range of services to customers worldwide. The company's primary services include airfreight, ocean freight, customs brokerage, and warehousing and distribution. Expeditors has a strong presence in the global logistics market, with operations in over 175 locations across 19 countries. Expeditors generates revenue through its various services, including airfreight consolidation, direct ocean forwarding,...

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Investment thesis

Bull case

  • Strong operating cash flow of 972.92M provides robust 1.74x coverage of total debt 560.36M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 1.19B provide 10.71x coverage of short-term debt 111.17M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 972.92M provides exceptional 556.27x coverage of minority interest expenses 1.75M, showing strong core operations.
  • Operating cash flow of 972.92M provides strong 13.26x coverage of stock compensation 73.39M, indicating sustainable incentive practices.
  • Strong tangible asset base of 4.77B provides 8.52x coverage of total debt 560.36M, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 972.92M barely covers its investment activities of (49.07M), with a coverage ratio of -19.83, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 972.92M provides thin coverage of dividend payments of (205.59M) with a -4.73 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 922.74M represents just -75.36x of debt issuance (12.24M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 2.47B provide limited buffer against comprehensive income items of (189.07M), which is -13.05x, indicating elevated exposure to market risks.
  • Operating cash flow of 972.92M is outpaced by equity issuance of (792.09M) (-1.23 ratio), indicating concerning reliance on equity markets for funding operations.

Geographical Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Integrated Freight & Logistics
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 FDX Fedex Corp 99.67 Bn 20.28 1.11 37.77 Bn
2 UPS United Parcel Service Inc 98.11 Bn 17.61 1.11 28.59 Bn
3 JBHT Hunt J B Transport Services Inc 28.29 Bn 145.14 7.91 1.60 Bn
4 EXPD Expeditors International Of Washington Inc 22.29 Bn 27.40 2.13 0.56 Bn
5 CHRW C. H. Robinson Worldwide, Inc. 21.34 Bn 36.35 1.31 1.43 Bn
6 ZTO ZTO Express (Cayman) Inc. 20.15 Bn 16.23 3.02 1.74 Bn
7 GXO GXO Logistics, Inc. 7.46 Bn 83.79 0.58 5.50 Bn
8 LSTR Landstar System Inc 5.11 Bn 28.60 1.06 0.13 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.42 1.04
EV to Cash from Ops. EV/CFO 15.29 -0.78
EV to Debt EV to Debt 37.69 -1.98
EV to EBIT EV/EBIT 18.78 10.54
EV to EBITDA EV/EBITDA 18.66 9.04
EV to Free Cash Flow [EV/FCF] EV/FCF 15.82 -2.76
EV to Market Cap EV to Market Cap 0.95 0.62
EV to Revenue EV/Rev 2.02 -0.31
Price to Book Value [P/B] P/B 8.95 4.96
Price to Earnings [P/E] P/E 27.40 15.82
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.11 0.95
Dividend Payout Ratio % Div Payout % (Qtr) 24.30 14.92
Dividend per Basic Share Div per Share (Qtr) 1.50 0.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 21.94 11.81
Interest Coverage Int. cover (Qtr) 0.00 -430.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -22.00 -2,938.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -7.97 139.78
Dividend Growth (1y) % Div 1y % (Qtr) 5.63 -0.23
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 15.36 -442.31
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 15.26 -224.47
EBIT Growth (1y) % EBIT 1y % (Qtr) 14.79 -367.92
EBT Growth (1y) % EBT 1y % (Qtr) 14.79 -191.62
EPS Growth (1y) % EPS 1y % (Qtr) 19.81 -974.30
FCF Growth (1y) % FCF 1y % (Qtr) 56.17 -67.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 13.40 1.66
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.34 1.29
Cash Payout Ratio Cash Payout (Qtr) 0.20 0.07
Cash Ratio Cash Ratio (Qtr) 0.58 0.97
Current Ratio Curr Ratio (Qtr) 1.79 3.22
Debt to Equity Ratio Debt/Equity (Qtr) 0.25 1.06
Interest Cover Ratio Int Coverage (Qtr) 0.00 -430.42
Times Interest Earned Times Interest Earned (Qtr) 0.00 -430.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 10.80 17.62
EBIT Margin % EBIT Margin % (Qtr) 10.24 24.68
EBT Margin % EBT Margin % (Qtr) 10.24 18.38
Gross Margin % Gross Margin % (Qtr) 32.90 20.25
Net Profit Margin % Net Margin % (Qtr) 7.60 31.04