FedEx Freight Holding Company, Inc.

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✓ 2✗ 13▾

  No clean pass — all 12 investors flag at least one debt & leverage criterion

  LT Debt vs Net Current AssetsLT Debt $4.2B vs NCA $710.0M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: N/A (negative equity), IC: 77.1x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / EquityN/A (negative equity)

  ✗Lynch< 0.33

  Cash - Long-term Debt$-3.8B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 61.94%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.62

  ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt LevelsN/A (non-positive equity)

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=77.1x, D/EBITDA=4.3x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)

  ✗AsnessTop 30% of eligible cross-section
• Valuation0% pass✗ 28▾

  All 13 investors flag FDXF's valuation

  Price / 3-yr avg EPS16.8x

  ✗Graham<= 15x

  Price-to-Book Ratio

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 30.6x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value2.2%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=2.2%, ROC=15.7%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS30.6x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)119.9x

  ✗Dreman< 8x

  Price / Book Value per ShareN/A (negative BVPS)

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=30.6x, OE Yield=3.9%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=30.6x, FCF Yield=-1.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=30.6x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-12.0% (IV=$119.55 vs Price=$133.93)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+3.27%; #2283/6340 (top 36.0%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization-0.0126; #5357/6449 (top 83.1%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS30.6x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.4392; #2809/5247 (top 53.5%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-1.06%; #2668/4519 (top 59.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 6▾

  FDXF overvalued: all 6 models price fair value below $133.93 (median $92.33)

  Buffett fair value$62.28

  ✗Buffett-115.0% margin vs $133.93

  Greenblatt fair value$65.11

  ✗Greenblatt-105.7% margin vs $133.93

  Dreman fair value$119.55

  ✗Dreman-12.0% margin vs $133.93

  Pabrai fair value$30.21

  ✗Pabrai-343.3% margin vs $133.93

  Marks fair value$119.55

  ✗Marks-12.0% margin vs $133.93

  Templeton fair value$119.55

  ✗Templeton-12.0% margin vs $133.93
• Profitability6% pass✓ 5✗ 30▾

  15 of 16 flag FDXF's profitability — Graham, Buffett, Lynch +12 more

  Positive EPS (10 years)3/4 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)3/4 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)65.2%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$788.0M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 30.6x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-35.5%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROEN/A (negative equity)

  ✗Lynch> 15%

  EBIT / Enterprise Value2.2%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=2.2%, ROC=15.7%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets9.51%

  ✓PiotroskiROA > 0

  ROA Change YoY26.80% -> 9.51% (delta: -17.29%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=2.43%, ROA=9.51%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue10.1%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity

  ✗Dreman> 12%

  Margin of SafetyP/E=30.6x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity65.2% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-12.0% (IV=$119.55 vs Price=$133.93)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency3/3 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue6.1%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend18.6% (2023) -> 6.1% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue flat/down, operating margin 18.6% -> 6.1%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+3.27%; #2283/6340 (top 36.0%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts7% pass✓ 1✗ 14▾

  Split decision: 13 FAIL · 2 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (3/9)✗LynchFAIL (1/7)✗GreenblattRank #1560✗PiotroskiFAIL (F-Score 3)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)✗MarksFAIL (2/5)✗AckmanFAIL (1/9)✗TempletonFAIL (1/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Growth13% pass✓ 2✗ 11▾

  7 of 8 flag FDXF's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 30.6x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-35.5%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$10.53 (2023) -> $4.38 (2025)

  ✗DremanPositive over recent years

  EPS CAGR-35.5% CAGR over 2 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency3/3 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth-3.4%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency0/2 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendrevenue flat/down, operating margin 18.6% -> 6.1%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Cash Flow20% pass✓ 3✗ 9▾

  8 of 10 flag FDXF's cash flow — Buffett, Lynch, Piotroski +5 more

  Free Cash Flow Proxy$788.0M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-212.0M

  ✗LynchPositive and growing

  Operating Cash Flow$167.0M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=2.43%, ROA=9.51%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)119.9x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=30.6x, FCF Yield=-1.1%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive2/3 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-1.1%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency3/3 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-212.0M

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization-1.06%; #2668/4519 (top 59.0%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency25% pass✓ 4✗ 7▾

  6 of 8 flag FDXF's efficiency — Graham, Greenblatt, Piotroski +3 more

  Current Ratio1.62

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)29.2%

  ✓Buffett> 10%

  ROIC - WACC+19.2%

  ✓BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)15.7%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.37 -> 1.52

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.77x -> 1.28x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.62

  ✓Dreman> 1.5

  Return on Invested Capital10.6%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=45.0%; FY2025: ROIC=10.6%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC9.8% (RR=93% x ROIC=10.6%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)1/2 years above 12% (latest 10.6%)

  ✗SleepROIC > 12% in a majority of years