Expeditors International (EXPD) AI Stock Analysis

• Market Cap: $15.51B
• Dividend Yield: 1.3%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.63
• Revenue Growth: 13.98%
• EPS Growth: 14.29%
• Country: US
• Employees: 18,400
• Sector: Industrials
• Sector Strength: 78
• Industry: Integrated Freight & Logistics
• EPS (TTM): 5.72
• Shares Outstanding: 137,756,700
• 10 Day Avg. Volume: 1,250,243
• 30 Day Avg. Volume: 1,565,504
• PEG Ratio: 1.38
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.07
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $113.01
• Price Target Upside: 0.37% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 11

Expeditors International shows strong financial performance with robust cash flow and low leverage, providing stability despite revenue growth challenges. The technical analysis indicates bearish momentum, but the fair valuation and positive corporate events, such as the appointment of new leadership, offer potential for future improvement. Overall, the stock is moderately positioned within its industry.

Positive Factors

Cost Management

The company demonstrated strong cost control on purchased transportation and other expenses, contributing to higher-than-expected results.

Earnings

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

Operational Efficiency

The company continues to improve operating efficiencies and performs well during chaotic times.

Negative Factors

Market Visibility

Visibility beyond day-to-day operations remains challenging due to factors like potential port strikes and uncertainty in global air and ocean supply.

Market Volatility

Volatility in global freight markets and pricing is expected to continue for some time, while increasing capacity along with a potential softening in demand and/or resolution of Red Sea disruptions are risks to ocean rates.

Sustainability of Earnings

The sustainability of the strong results in the recent quarters is uncertain, and estimates for future performance remain largely unchanged.

Expeditors International Business Overview & Revenue Model

Company Description

Expeditors International of Washington, Inc. provides logistics services in the Americas, North Asia, South Asia, Europe, the Middle East, Africa, and India. The company offers airfreight services, such as air freight consolidation and forwarding; ocean freight and ocean services, including ocean freight consolidation, direct ocean forwarding, and order management; customs brokerage, intra-continental ground transportation and delivery, and warehousing and distribution services; and customs clearance, purchase order management, vendor consolidation, time-definite transportation services, temperature-controlled transit, cargo insurance, specialized cargo monitoring and tracking, and other supply chain solutions. It also provides optimization, trade compliance, consulting, cargo security, and solutions. In addition, it acts as a freight consolidator or as an agent for the airline, which carries the shipment. Further, the company provides ancillary services that include preparation of shipping and customs documentation, packing, crating, insurance services, negotiation of letters of credit, and the preparation of documentation to comply with local export laws. Its customers include retailing and wholesaling, electronics, technology, and industrial and manufacturing companies. Expeditors International of Washington, Inc. was incorporated in 1979 and is headquartered in Seattle, Washington.

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	9.58B
	Gross Profit
1.35B	1.25B	2.17B	2.17B	1.16B
	EBIT
1.04B	939.93M	1.82B	1.91B	940.44M
	EBITDA
1.10B	1.01B	1.88B	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
1.15B	1.51B	2.03B	1.73B	1.53B
	Total Assets
4.75B	4.62B	5.59B	7.61B	4.93B
	Total Debt
568.94M	527.73M	518.47M	467.66M	438.19M
	Net Debt
-579.38M	-985.15M	-1.52B	-1.26B	-1.09B
	Total Liabilities
2.53B	2.13B	2.48B	4.11B	2.26B
	Stockholders Equity
2.22B	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: Neutral
• Last Price: 112.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPD, the sentiment is Neutral. The current price of 112.59 is above the 20-day moving average (MA) of 108.39, below the 50-day MA of 114.28, and below the 200-day MA of 117.50, indicating a neutral trend. The MACD of -1.12 indicates Negative momentum. The RSI at 53.53 is Neutral, neither overbought nor oversold. The STOCH value of 82.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EXPD.

Expeditors International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZTO	78 Outperform	$14.94B	12.77	14.46%	3.58%	12.67%	-0.32%
EXPD	71 Outperform	$15.51B	19.70	35.12%	1.30%	13.98%	14.29%
CHRW	70 Outperform	$10.74B	23.54	32.11%	―	-0.22%	65.52%
JBHT	64 Neutral	$13.29B	23.92	13.97%	1.29%	-3.82%	-12.80%
Sector *	64 Neutral	$4.27B	11.81	5.31%	249.66%	4.08%	-8.61%
LSTR	63 Neutral	$4.77B	24.75	20.03%	1.03%	-9.13%	-25.11%
XPO	61 Neutral	$12.93B	33.77	26.24%	―	1.94%	60.91%

Expeditors International Corporate Events

Expeditors International Finalizes CEO Employment Agreement

On April 30, 2025, Expeditors International finalized an employment agreement with its CEO, Daniel R. Wall, effective April 1, 2025. The agreement outlines Mr. Wall’s compensation, including a base salary and potential incentives, and includes provisions for severance and non-compete clauses, indicating a strategic focus on leadership stability.

Spark’s Take on EXPD Stock

According to Spark, TipRanks’ AI Analyst, EXPD is a Outperform.

Expeditors International shows strong financial performance with robust cash flow and low leverage, providing stability despite revenue growth challenges. The technical analysis indicates bearish momentum, but the fair valuation and positive corporate events, such as the appointment of new leadership, offer potential for future improvement. Overall, the stock is moderately positioned within its industry.

To see Spark’s full report on EXPD stock, click here.

Expeditors International Appoints New President of Global Products

On April 21, 2025, Expeditors International announced the appointment of Robert A. Martinez as the new President of Global Products, effective June 1, 2025. Martinez, who has been with the company since 2003, has held various leadership roles, most recently serving as Senior Vice President of The Americas. This leadership change is expected to strengthen Expeditors’ global product strategy and enhance its competitive positioning in the logistics industry.

Spark’s Take on EXPD Stock

According to Spark, TipRanks’ AI Analyst, EXPD is a Outperform.

Expeditors International showcases strong financial performance with robust cash flow and low leverage, countering some revenue growth challenges. Technical analysis indicates bearish momentum, but valuation remains fair. The recent leadership change is a positive strategic move, potentially boosting future performance. Overall, the stock is positioned moderately well within its industry.

To see Spark’s full report on EXPD stock, click here.

Expeditors International Appoints Kelly Blacker as New President

On March 19, 2025, Expeditors International announced the appointment of Kelly K. Blacker as the new President – Global Geographies, effective April 1, 2025. Ms. Blacker, who has been with the company since 1994, has held various leadership roles, including President – Global Products. Her extensive experience within the company is expected to strengthen Expeditors’ operational capabilities and enhance its strategic positioning in the global logistics market.

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.