MoatScopeFedEx Freight Holding Company, Inc.FDXF
Spin-off from FedEx Corporation (FDX) · Jun 1, 2026 · NYSE
assumed ratio in the filing of one share of FedEx Freight for every two shares of FedEx; FedEx retained up to a 19.9% stake
Documents
Both companies today
Moat ratings, quality scores and fair value estimates are MoatScope research opinions and refresh with the data pipeline. Price / FV below 1.00× means the shares trade under our base-case estimate.
What is being separated
FedEx Freight is the largest pure-play less-than-truckload carrier in North America, with a dual-service model, market-leading scale and its own terminal network. FedEx keeps the Express and Ground parcel networks and retained up to a 19.9% stake in Freight to be sold down after the distribution. Freight borrowed $4.3 billion — $3.7 billion of senior notes and a $0.6 billion term loan — and distributed roughly $4.1 billion in cash to FedEx at closing.
Stated rationaleFedEx announced in December 2024 that two focused public companies would each pursue its own strategy and capital allocation, calling the separation a milestone in its value-creation plan.
The four questions
Indiscriminate selling
PartialManagement incentives
PartialThe hidden jewel
PartialLeverage
StrongThe write-up
FedEx completed the separation of FedEx Freight on June 1, 2026, distributing one Freight share for every two FedEx shares and keeping up to 19.9% of the new company to sell down later. Freight is the largest pure-play less-than-truckload carrier in North America, with a dual-service model, its own terminal network and a technology platform the filing leans on heavily; FedEx keeps the Express and Ground parcel networks. On MoatScope's framework the new company carries a Narrow moat and a quality score of 32 at a $19.4 billion market value, 1.19× its base-case fair value estimate. The parent carries a Narrow moat and a quality score of 50 at $76 billion, 0.62× fair value.
Not investment advice. Terms are as stated in the latest filing; spin-off shares are often thinly covered and volatile in their first months. Write-up dated Sep 8, 2026.