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 (14% and 26% respectively) over the past 10 years, earning
16-20%+ return of equity. EXPD ’s profits
suffered a brief hiccup in the 2008-2009 economic weakness; however, longer
term it should continue to achieve economic success as a result of:
(1) acquisitions,
(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,
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 2003
*comparable industry data is not
available
Debt/ EPS Down Net Value Line
Equity ROE Since 2003 Margin Rating
*comparable industry data is not
available
Chart
Note:
EXPD stock made good initial progress off
its March 2009 low, surpassing the downtrend off its July 2006 high (red line)
and the November 2008 trading high (green line). Long term, the stock is in an uptrend
(straight blue lines). Intermediate
term, it is in a trading range (purple lines).
Short term, it is in an uptrend (brown line). The wiggly blue line is on balance
volume. The Aggressive Growth Portfolio
owns a 75% position in EXPD . The upper boundary of its Buy
Value Range Sell
Half Range
12/13
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