EXPEDITORS INTERNATIONAL OF WASHINGTON INC

Asset-light global logistics leader with top-decile returns, fat margins, and strong cash generation despite muted growth.

Strengths

• ROA 16.6% and net margin both 100th pct; ROE 34% (78th) — best-in-class capital efficiency
• Non-asset model generated $1.0B operating cash flow and returned $875M to shareholders; current ratio 1.81 (89th)

Risks

• Revenue/net-income growth flat (41st/46th pct) and high exposure to China/Hong Kong exports (~19% of revenue) amid tariff volatility
• Intensely price-competitive freight forwarding limits pricing power in soft-rate cycles

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Customer concentration~25% of revenue from one customer/distributor — North Asia is our largest export-oriented region and accoun t ed for 25% of revenues, 30% of d ir ectly related cost of transportation and other expenses and 21% of operating income for the year ended
• Strong balance sheetStrong balance sheet — $1.3B cash & investments
• Buying back stockNet buyback — share count -4%/yr over 4y
• Insider sellingInsider selling — 2 open-market sale(s) by 2 insider(s) (cluster of 2 insiders, ~$2M, last 6mo) Form 4 ↗