April 27, 2025 a 07:46 am
EXPD: Dividend Analysis - Expeditors International of Washington, Inc.
Expeditors International of Washington, Inc. has exhibited robust dividend growth with a history of 32 years of uninterrupted payments, and a solid yield of 1.20%. This established track record highlights an emphasis on shareholder returns and a commitment to maintaining a stable dividend policy.
📊 Overview
Expeditors International operates within the transportation and logistics sector, offering consistent dividend payouts and a respectable yield. Below are the key metrics that outline their current dividend profile:
| Metric | Value |
|---|---|
| Sector | Transportation and Logistics |
| Dividend Yield | 1.20% |
| Current Dividend Per Share | 1.45 USD |
| Dividend History | 32 years |
| Last Cut or Suspension | None |
📈 Dividend History
The dividend history of Expeditors is noteworthy for its longevity of 32 years, signifying a strong commitment to rewarding shareholders. Continuous dividend payments support investors’ confidence in its fiscal health and its operational model.
| Year | Dividend Per Share (USD) |
|---|---|
| 2024 | 1.46 |
| 2023 | 1.38 |
| 2022 | 1.34 |
| 2021 | 1.16 |
| 2020 | 1.04 |
💹 Dividend Growth
Dividend growth over the past few years has been steady, reflecting the company's ongoing profitability and efficiency in cash flow management. These metrics are critical in assessing the long-term sustainability of dividend payments.
| Time | Growth |
|---|---|
| 3 years | 7.97% |
| 5 years | 7.86% |
The average dividend growth is 7.86% over 5 years. This shows moderate but steady dividend growth.
💲 Payout Ratio
The payout ratio measures the proportion of earnings paid out as dividends to shareholders, a critical indicator of a company’s dividend policy fitness. A lower ratio indicates sufficient retained earnings to fund growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 24.90% |
| Free Cash Flow-based | 29.20% |
The EPS-based payout ratio of 24.90% and FCF-based ratio of 29.20% are relatively conservative, indicating potential for future dividend increases while supporting financial growth commitments.
📉 Cashflow & Capital Efficiency
Cashflow figures and capital efficiency metrics provide a deep understanding of a company's operational efficiency and its capability to generate cash flows, crucial for funding dividends and capital expenditures.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 6.49% | 5.34% | 12.06% |
| Earnings Yield | 5.19% | 3.97% | 8.01% |
| CAPEX to Operating Cash Flow | 3.84% | 3.73% | 4.08% |
| Stock-based Compensation to Revenue | 0.55% | 0.63% | 0.38% |
| Free Cash Flow / Operating Cash Flow Ratio | 96.27% | 96.27% | 95.92% |
The cash flow efficiency is robust, with a consistent cash flow generation and effective CAPEX management. These metrics bolster the company's dividend sustainability and future growth prospects.
⚖️ Balance Sheet & Leverage Analysis
Balance sheet analysis along with leverage ratios provide insights into a company’s financial health, indicating debt management practices and overall stability. They highlight the company's ability to meet financial obligations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.256 | 0.221 | 0.167 |
| Debt-to-Assets | 0.120 | 0.114 | 0.093 |
| Debt-to-Capital | 0.204 | 0.181 | 0.143 |
| Net Debt to EBITDA | -0.526 | -0.978 | -0.805 |
| Current Ratio | 1.771 | 1.887 | 2.200 |
| Quick Ratio | 1.771 | 1.887 | 2.074 |
| Financial Leverage | 2.139 | 1.934 | 1.798 |
The low leverage ratios and high liquidity indicators demonstrate Expeditors' strong financial condition, providing resilience against economic uncertainties.
🧾 Fundamental Strength & Profitability
Fundamental strength evaluates the efficiency and profitability of the company's operations, offering insights into return ratios and margin levels, hence portraying overall financial soundness.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 36.44% | 31.50% | 43.65% |
| Return on Assets | 17.04% | 16.28% | 24.28% |
| Margins: Net | 7.64% | 8.10% | 7.95% |
| Margins: EBIT | 9.82% | 10.11% | 10.69% |
| Margins: EBITDA | 10.40% | 10.84% | 11.02% |
| Margins: Gross | 12.73% | 13.39% | 12.72% |
| Research & Development to Revenue | 0 | 0 | 0 |
With high return ratios and stable profit margins, Expeditors exhibits substantial profitability and operational efficiency, facilitating continued investment in growth and dividends.
📈 Price Development
🔍 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 35/40
✅ Rating
Overall, Expeditors International of Washington, Inc. exhibits a robust dividend profile underpinned by a solid history of dividend payments, coupled with conservative financial metrics and strong profitability. These strengths firmly position it as a favorable option for dividend-oriented investors seeking stability and gradual income growth.