Expeditors
International (EXPD ) is a third party
logistics provider offering worldwide consolidation services for air and ocean
freight as well as custom brokerage and import services. The company runs service offices and international
service centers in more than 50 countries on six continents. It has
an outstanding record of profit and dividend growth (15% and 28% respectively)
over the past 10 years, earning 16-20%+
return of equity. EXPD ’s profits suffered as
expected in recent economic weakness; however, longer term it should continue
to achieve economic success as a result of:
(1) a pickup in
ocean freight tonnage,
(2) the
company’s expansion into new services,
(3) as a global
leader, EXPD should continue to increase its
market share in this highly fragmented industry,
(4) an aggressive
cost cutting program,
(5) stock buy
back program.
Negatives:
(1) its revenue
is closely tied to consumer demand which decline if a ‘double dip’ occurs,
(2) it is in a
highly competitive industry,
(3) it doesn’t
control any transportation assets and therefore relies on the dependability of
others,
(4) its large
internationals operations subject it to the risks of currency fluctuations.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2002
*comparable industry data is not
available
Debt/ EPS Down Net Value Line
Equity ROE Since 2002 Margin Rating
*comparable industry data is not
available
Chart
Note:
EXPD made good initial progress off its
March 2009 low. While it surpassed the
downtrend off the July 2006 high (straight red line) and the November 2008
trading high (green line), it has since fallen below the November 2008 trading
high and is only slightly above the July 2006 to present downtrend. Long term, the stock is in a trading range
(blue lines). Intermediate term, it is
in a downtrend. The Aggressive Growth Portfolio owns a one half position,
having Sold Half when the stock broke a former intermediate term uptrend. The upper boundary of its Buy
Value Range
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