Expeditors International (EXPD) AI Stock Analysis

• Market Cap: $16.31B
• Dividend Yield: 1.23%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.66
• Revenue Growth: 13.98%
• EPS Growth: 14.29%
• Country: US
• Employees: 18,100
• Sector: Industrials
• Sector Strength: 66
• Industry: Transportation
• EPS (TTM): 5.72
• Shares Outstanding: 138,032,010
• 10 Day Avg. Volume: 1,777,333
• 30 Day Avg. Volume: 1,263,164
• PEG Ratio: 1.45
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.54
• Price to Cash Flow (P/CF): 16.40
• P/FCF Ratio: 17.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $114.24
• Price Target Upside: -3.29% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 10

Expeditors International's overall stock score reflects strong financial performance and strategic positioning in a challenging environment. The company shows solid financial health with effective cost management and a strong balance sheet. Technical analysis suggests some caution as the stock approaches overbought levels. Valuation appears slightly high, which may limit upside potential. Nevertheless, recent corporate events highlight the company's strategic positioning for growth in complex trade environments.

Positive Factors

Cost Management

The company has demonstrated strong cost control, particularly in purchased transportation and other expenses.

Financial Performance

EXPD reported revenue that was 11% ahead of expectations and EPS of $1.68, up 54% year-on-year.

Negative Factors

Market Visibility

Visibility beyond day-to-day operations remains challenging, with difficulties in predicting global air and ocean supply.

Expeditors International Business Overview & Revenue Model

Company Description

Expeditors International of Washington, Inc. engages in the provision of global logistics services. The firm offers airfreight, ocean freight and ocean and customs brokerage and other services. It also provides customer solutions such as order management, time-definite transportation, warehousing and distribution, temperature-controlled transit, cargo insurance and customized logistics solutions. The company was founded by John M. Kaiser, Peter Rose, Wang Li Kou, Kevin Walsh, Hank Wong, George Ho, Robert Chiarito, and Glenn Alger in May 1979 and is headquartered in Seattle, WA.

How the Company Makes Money

Expeditors International generates revenue through its comprehensive logistics services, primarily in three key areas: airfreight services, ocean freight services, and customs brokerage and other services. The company's revenue model is based on the fees charged for arranging and managing the transportation of goods via air and sea, leveraging its global network of carriers and partners to provide cost-effective shipping solutions. Additionally, Expeditors earns income from customs brokerage fees, which involve managing the complexities of international trade regulations and ensuring the smooth clearance of goods through customs. The company also offers distribution and warehousing services, contributing to its revenue streams. Strategic partnerships with carriers, shippers, and technology providers enhance Expeditors' service offerings and operational efficiency, further supporting its financial performance.

Expeditors International Financial Statement Overview

Summary

Expeditors International demonstrates solid financial health with strong profitability margins, low leverage, and robust cash flow generation. Despite facing revenue growth challenges, the company maintains stability through effective cost management and a strong balance sheet. The overall financial position is favorable, positioning the company well for future opportunities in the transportation industry.

Income Statement

The income statement shows a solid gross profit margin of 38.1% for TTM (Trailing-Twelve-Months), indicating efficient cost management. The net profit margin of 7.6% is stable, though showing a decrease from prior years due to revenue contraction. EBIT and EBITDA margins are strong at 9.8% and 10.5%, respectively, reflecting good operating efficiency despite revenue pressures. Revenue growth has been challenging, with a significant decline from 2022 to 2023, but recent TTM figures suggest stabilization.

Balance Sheet

The balance sheet is robust with a debt-to-equity ratio of 0.26, indicating low leverage and financial stability. The equity ratio of 46.8% is strong, showcasing a solid base of equity financing. However, return on equity is moderate at 36.4% for TTM, reflecting pressure on profitability. Overall, the company maintains a healthy balance sheet with low risk of financial distress.

Cash Flow

Cash flow analysis reveals a strong operating cash flow to net income ratio of 0.89, indicating effective cash conversion. Free cash flow generation remains robust with a modest decline year-over-year. The free cash flow to net income ratio is high at 0.84, demonstrating the company's ability to generate cash relative to earnings. This strong cash flow profile supports ongoing operations and potential investments despite revenue challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.60B	9.30B	17.07B	16.52B	10.12B
	Gross Profit
10.60B	1.25B	2.17B	2.17B	1.16B
	EBIT
1.04B	939.93M	1.82B	1.91B	940.44M
	EBITDA
1.15B	1.09B	1.92B	1.98B	1.01B
	Net Income Common Stockholders
810.07M	752.88M	1.36B	1.42B	696.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
623.56M	1.51B	2.03B	1.73B	1.53B
	Total Assets
623.56M	4.62B	5.59B	7.61B	4.93B
	Total Debt
0.00	527.73M	518.47M	467.66M	438.19M
	Net Debt
-623.56M	-985.15M	-1.52B	-1.26B	-1.09B
	Total Liabilities
0.00	2.13B	2.48B	4.11B	2.26B
	Stockholders Equity
0.00	2.39B	3.11B	3.49B	2.66B
Cash Flow		Free Cash Flow
1.01B	1.01B	2.04B	832.25M	607.47M
	Operating Cash Flow
1.05B	1.05B	2.13B	868.49M	655.01M
	Investing Cash Flow
-39.43M	-39.43M	-87.71M	-36.65M	-46.03M
	Financing Cash Flow
-1.54B	-1.54B	-1.68B	-613.55M	-331.54M

Expeditors International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 118.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPD, the sentiment is Positive. The current price of 118.13 is above the 20-day moving average (MA) of 114.96, above the 50-day MA of 113.17, and below the 200-day MA of 119.07, indicating a neutral trend. The MACD of 1.37 indicates Negative momentum. The RSI at 59.84 is Neutral, neither overbought nor oversold. The STOCH value of 71.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXPD.

Expeditors International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPD	78 Outperform	$16.31B	20.67	36.44%	1.23%	13.98%	14.29%
UPS	72 Outperform	$101.87B	17.64	34.59%	5.47%	0.16%	-13.41%
XPO	66 Neutral	$13.69B	36.12	24.17%	―	4.22%	105.29%
FDX	66 Neutral	$63.32B	16.76	6.06%	2.09%	-0.63%	-7.18%
JBHT	65 Neutral	$15.76B	28.37	14.22%	1.10%	-5.79%	-20.32%
CHRW	63 Neutral	$11.67B	25.49	27.04%	2.45%	0.73%	41.65%
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%

Expeditors International Corporate Events

Expeditors International Announces CEO Transition in 2025

On February 19, 2025, Expeditors International announced that CEO Jeffrey S. Musser plans to retire on March 31, 2025. Daniel R. Wall will succeed him as the new President and CEO, effective April 1, 2025. Wall, who has been with the company since 1987, has held various leadership roles and is recognized for his strong leadership skills and deep understanding of the business. This leadership transition aligns with Expeditors’ tradition of promoting from within and is expected to be seamless, continuing the company’s commitment to its culture and mission.

Expeditors International Navigates Challenges and Seizes Opportunities

Expeditors International highlights various challenges and opportunities in its operations, including the potential impact of tariffs, productivity improvements, and market adjustments due to geopolitical conflicts. The company has successfully increased operational efficiency without significant headcount expansion, and anticipates future staffing needs as volumes grow. Expeditors is well-positioned to benefit from complex trade environments, including changes in de minimis laws, which could open new business opportunities.