May 03, 2025 a 11:31 am
EXPD: Dividend Analysis - Expeditors International of Washington, Inc.
The dividend profile of Expeditors International reflects a commitment to steady shareholder returns. With a consistent dividend history spanning over three decades, the company exemplifies stability in an otherwise volatile sector. While their payout ratios remain conservative, suggesting ample room for future growth, the recent stable increment in dividends highlights resilience and an investor-centric approach.
📊 Overview
Expeditors International operates within a niche of the logistics sector, boasting a commendable dividend yield of 1.20%. The current dividend per share stands at 1.45 USD, supported by an impressive 32-year track record of consistent payouts.
| Metric | Description |
|---|---|
| Sector | Logistics |
| Dividend Yield | 1.20% |
| Current Dividend per Share | 1.45 USD |
| Dividend History | 32 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Maintaining a robust dividend history, Expeditors has demonstrated financial durability. This consistency is key for income-focused investors seeking long-term stability.
| Year | Dividend per Share (USD) |
|---|---|
| 2024 | 1.46 |
| 2023 | 1.38 |
| 2022 | 1.34 |
| 2021 | 1.16 |
| 2020 | 1.04 |
📈 Dividend Growth
With a 3-year dividend growth rate at 7.97% and a 5-year rate at 7.86%, Expeditors showcases a consistent upward trajectory in payouts, reflecting strategic reinvestment and future optimism.
| 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 ratios are indicative of a balanced revenue allocation strategy, maintaining healthy dividend payments while ensuring future operational flexibility.
| Key figure | Ratio |
|---|---|
| EPS-based | 24.90% |
| Free cash flow-based | 29.20% |
With a prudent EPS payout ratio of 24.90% and a FCF-based ratio at 29.20%, the company prioritizes sustainable dividend growth and retains sufficient earnings for future ventures.
✅ Cashflow & Capital Efficiency
Cash flow metrics underscore a robust fiscal structure, highlighting capital efficiency and optimal utilization metrics. These figures signal the enterprise's adept handling of cash influxes and capital outflows, ensuring enduring growth momentum.
| Fiscal Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 12.06% | 5.34% | 4.37% |
| Earnings Yield | 8.01% | 3.97% | 5.19% |
| CAPEX to Operating Cash Flow | 4.08% | 3.73% | 5.59% |
| Stock-based Compensation to Revenue | 0.38% | 0.63% | 0.61% |
| Free Cash Flow / Operating Cash Flow Ratio | 95.92% | 96.27% | 94.41% |
The data highlights a solid performance, with a satisfactory Free Cash Flow yield indicating efficient cash surplus handling.
⚠️ Balance Sheet & Leverage Analysis
Stability and balance sheet acumen signify Expeditors' careful financial stewardship, marked by conservative leverage metrics ensuring the ability to withstand economic variances.
| Fiscal Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 16.67% | 22.08% | 25.59% |
| Debt-to-Assets | 9.27% | 11.41% | 11.66% |
| Debt-to-Capital | 14.29% | 18.08% | 20.38% |
| Net Debt to EBITDA | -0.81 | -0.98 | -0.53 |
| Current Ratio | 2.20 | 1.89 | 1.77 |
| Quick Ratio | 2.07 | 1.89 | 1.77 |
| Financial Leverage | 1.80 | 1.93 | 2.20 |
Expeditors presents a conservative debt profile, emphasizing financial prudence and resilience.
🔍 Fundamental Strength & Profitability
These metrics suggest robust fundamental strength, with high returns on equity (ROE) and invested capital (ROIC) indicating competent management and effective use of equity.
| Fiscal Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 43.65% | 31.50% | 36.44% |
| Return on Assets | 24.28% | 16.28% | 16.60% |
| Net Margin | 7.95% | 8.10% | 7.64% |
| EBIT Margin | 10.69% | 10.11% | 9.82% |
| EBITDA Margin | 11.03% | 10.84% | 10.40% |
| Gross Margin | 12.72% | 13.39% | 12.73% |
| Research & Development to Revenue | 0% | 0% | 0% |
The company maintains strong profitability metrics, ensuring sound returns and operational efficiency.
📈 Price Development
⭐ Dividend Scoring System
| Category | Description | Score |
|---|---|---|
| Dividend Yield | 1.20% | |
| Dividend Stability | 32-year history | |
| Dividend Growth | Steady increase | |
| Payout Ratio | 24.90% EPS-based | |
| Financial Stability | Prudent leverage | |
| Dividend Continuity | Consistent | |
| Cashflow Coverage | Strong ratios | |
| Balance Sheet Quality | Sound metrics |
Total Score: 33/40
📊 Rating
Expeditors International offers a compelling dividend profile, characterized by strong fundamentals and a reliable dividend track record. Given its robust financial health and history of yield growth, it represents a worthwhile addition for investors prioritizing stability and income. However, the modest yield suggests a preference for growth-focused portfolios as well.