I've been keeping an eye on Expeditors International of Washington, Inc. (NASDAQ:EXPD) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe EXPD has a lot to offer. Basically, it is a financially-healthy , dividend-paying company with a great track record of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on Expeditors International of Washington here.
Flawless balance sheet with solid track record and pays a dividend
Over the past year, EXPD has grown its earnings by 17%, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 29%. which paints a buoyant picture for the company. EXPD's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that EXPD has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. EXPD currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is rather impressive for a US$13b market cap company. EXPD has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For those seeking income streams from their portfolio, EXPD is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.3%.
For Expeditors International of Washington, I've put together three essential factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for EXPD’s future growth? Take a look at our free research report of analyst consensus for EXPD’s outlook.
- Valuation: What is EXPD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EXPD is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EXPD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.