How Does This Logistics Network Operate?
Expeditors International of Washington provides logistics services that help customers move freight through global transportation networks. The company coordinates shipments and related services across modes, acting as an intermediary between shippers and carriers. Its day-to-day work is operational: arranging transportation, managing documentation, and keeping shipments moving on time. The business is built around execution and scale in logistics rather than owning large fleets of physical assets.
Are Margins and Returns Holding Steady?
FundamentalsFor 2025, reported in USD, revenue was USD 11.1 billion and EBIT was about USD 1.05 billion. Revenue grew 4.4% versus the prior year, while the trailing operating margin is 9.67% and the net profit margin 7.48%.
On capital efficiency, the trailing ROE is 36.69%, a standout number next to the business’s margin profile. Depreciation and amortization totaled USD 56.8 million, and the cash flow proxy was roughly USD 827.2 million.
Is the Market Overpaying for Quality?
DCF / MultiplesAt USD 170.62, the stock trades well above the DCF fair-value range implied by the model’s outcomes. That premium pricing also shows up in the headline multiples, with a 26.48 trailing P/E and 18.31 EV/EBITDA.
Premium Pricing Carries Risk
TakeawayThe price is treating returns on capital as permanently exceptional. That can work only if high returns stay durable. Any fade in margins would matter more than the revenue growth rate. The mispricing risk is paying up for quality that normalizes.