-1.62%
-3.43%
-3.46%
-11.07%
9.47%
5.11%
84.14%
AI Spotlight on FDX
Company Description
FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally.The company's FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; time-critical transportation services; and cross-border enablement, technology, and e-commerce transportation solutions.Its FedEx Ground segment provides day-certain delivery services to businesses and residences.
The company's FedEx Freight segment offers less-than-truckload freight transportation services.As of May 31, 2022, this segment had approximately 30,000 vehicles and 400 service centers.Its FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services.
The company's Corporate, Other and Eliminations segment offers integrated supply chain management solutions, specialty transportation, customs brokerage, and global ocean and air freight forwarding services; and document and business services, as well as retail access to its customers for its package transportation businesses.FedEx Corporation was founded in 1971 and is based in Memphis, Tennessee.
Market Data
| Last Price | 264.87 |
| Change Percentage | -1.62% |
| Open | 270.1 |
| Previous Close | 269.24 |
| Market Cap ( Millions) | 63794 |
| Volume | 1862871 |
| Year High | 313.84 |
| Year Low | 234.45 |
| M A 50 | 280.93 |
| M A 200 | 277.02 |
Financial Ratios
| FCF Yield | 4.15% |
| Dividend Yield | 2.04% |
| ROE | 10.70% |
| Debt / Equity | 27.81% |
| Net Debt / EBIDTA | 165.58% |
| Price To Book | 1.0 |
| Price Earnings Ratio | 16.49 |
| Price To FCF | 24.1 |
| Price To sales | 0.73 |
| EV / EBITDA | 7.58 |
News
- Jan -30 - FedEx (FDX) Registers a Bigger Fall Than the Market: Important Facts to Note
- Jan -29 - FedEx Remains Highest Ranked Delivery Company on Fortune's “World's Most Admired Companies” Overall List
- Jan -23 - FedEx Announces Early Participation Results and Amendment of Exchange Offers and Consent Solicitations for Senior Notes
- Jan -22 - Famous Billionaires Keep Loading up on These Stocks, Is it Time to Buy?
- Jan -21 - Billionaire Bill Gates Continues to Sell Microsoft Stock. He's Buying This Top Name Instead
- Jan -10 - Insiders are Buying These 3 Large Cap Stocks
- Jan -10 - Billionaire Bill Gates Is Betting Big on a Transportation Recovery. This Stock Could Take Off if He's Right.
- Jan -08 - ICIC Honors the Nation's Fastest-Growing Businesses in Under-Resourced Communities
- Jan -07 - FedEx Announces Commencement of Exchange Offers and Consent Solicitations for Senior Notes
- Jan -06 - Is FDX Stock a Smart Investment Option for the New Year?
- Jan -06 - 5 Of Bairds Top 2025 Red-Hot Stock Ideas Pay Dependable Recurring Dividends
- Jan -06 - Insiders Are Loading Up: 3 Key Stock Picks for Investors
- Dec -29 - FedEx: Choose The Child Over The Parent Post Spinoff
- Dec -26 - Bill Gates Bought Only 2 Stocks in Q3 and He's Betting Big on Just One Sector
- Dec -26 - FedEx Outperformed UPS in 2024, but Which Dividend Stock Is the Better Buy for 2025?
- Dec -24 - Broughton Capital's Don Broughton gives his outlook for transports in 2025
- Dec -24 - Stock Of The Day: FedEx Shows 'Bad Action' As Support Crumbles
- Dec -24 - FedEx Delivers: Reveals Value-Building Plan for 2025
- Dec -23 - How Should You Play FDX Stock Post Plans of Freight Unit Spinoff?
- Dec -20 - FedEx Positioned As Largest Pure-Play North American LTL Carrier Post-Separation: Analyst
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> FedEx Express
Expected Growth : 3.2 %
What the company do ?
FedEx Express is a fast and reliable express transportation company that provides overnight and time-definite delivery services globally.
Why we expect these perspectives ?
FedEx Express' 3.2% growth is driven by increasing e-commerce demand, expansion in international markets, and strategic investments in network optimization and capacity enhancements. Additionally, the segment benefits from a strong brand reputation, diverse customer base, and a focus on yield management, which contributes to revenue growth.
Segment n°2 -> FedEx Ground
Expected Growth : 2.8 %
What the company do ?
FedEx Ground is a leading provider of ground shipping services, offering cost-effective and reliable delivery of packages and freight across North America.
Why we expect these perspectives ?
FedEx Ground's 2.8% growth is driven by increasing e-commerce demand, expansion of residential delivery services, and strategic investments in network optimization and capacity expansion. Additionally, the segment benefits from a strong brand reputation, efficient operations, and a diverse customer base.
Segment n°3 -> FedEx Freight
Expected Growth : 3.5 %
What the company do ?
FedEx Freight is a leading provider of less-than-truckload (LTL) freight services, offering fast and reliable transportation of goods across the US, Canada, and internationally.
Why we expect these perspectives ?
FedEx Freight's 3.5% growth is driven by increasing demand for freight services, particularly in the e-commerce and industrial sectors. Additionally, the company's investments in network optimization, technology, and capacity expansion have improved operational efficiency, allowing for higher volumes and revenue growth.
Segment n°4 -> Corporate, Other and Eliminations
Expected Growth : 2.5 %
What the company do ?
Corporate consists of FedEx's headquarters, Other includes FedEx Office, FedEx Logistics, and other smaller businesses, and Eliminations accounts for intercompany transactions.
Why we expect these perspectives ?
{'Corporate': "FedEx's corporate segment growth is driven by strategic cost savings initiatives, investments in digital transformation, and a focus on operational efficiency, contributing to a 2.5% growth rate.", 'Other': "The 'Other' segment's growth is fueled by the expansion of FedEx Office services, including print and logistics solutions, as well as the growth of FedEx Dataworks, a data analytics platform, resulting in a 2.5% growth rate.", 'Eliminations': "The Eliminations segment's growth is primarily driven by the consolidation of intercompany transactions and the elimination of duplicate costs, contributing to a 2.5% growth rate."}
Segment n°5 -> FedEx Services
Expected Growth : 3.1 %
What the company do ?
FedEx Services offers a range of logistics and supply chain management solutions, including freight forwarding, customs brokerage, and trade management.
Why we expect these perspectives ?
FedEx Services' 3.1% growth driven by increasing demand for e-commerce logistics, expansion of retail convenience services, and growth in business-to-business services. Additionally, investments in digital transformation, cost savings initiatives, and strategic acquisitions contribute to the segment's growth.
Fedex Corporation Products
| Product Range | What is it ? |
|---|---|
| FedEx Express | Time-sensitive, door-to-door delivery of packages and freight, with a focus on speed and reliability. |
| FedEx Ground | Cost-effective, day-definite delivery of packages and freight, with a focus on reliability and efficiency. |
| FedEx Freight | Less-than-truckload (LTL) and truckload (TL) freight services for large shipments, with a focus on reliability and flexibility. |
| FedEx Office | Retail and printing services, including copying, printing, and shipping, with a focus on convenience and flexibility. |
| FedEx Supply Chain | Customized logistics and supply chain management services, with a focus on efficiency and visibility. |
| FedEx Trade Networks | International air and ocean freight forwarding services, with a focus on customs clearance and compliance. |
| FedEx Services | Customized logistics and transportation services, including warehousing and distribution, with a focus on flexibility and scalability. |
FedEx Corporation's Porter Forces
Threat Of Substitutes
FedEx has a moderate threat of substitutes due to the presence of alternative logistics and transportation companies, but its strong brand reputation and extensive network mitigate this threat.
Bargaining Power Of Customers
FedEx has a low bargaining power of customers due to its large customer base and diversified revenue streams, making it less dependent on individual customers.
Bargaining Power Of Suppliers
FedEx has a moderate bargaining power of suppliers due to its dependence on fuel suppliers and aircraft manufacturers, but its large scale of operations and long-term contracts mitigate this threat.
Threat Of New Entrants
FedEx has a low threat of new entrants due to the high barriers to entry in the logistics and transportation industry, including significant capital requirements and regulatory hurdles.
Intensity Of Rivalry
FedEx operates in a highly competitive industry with intense rivalry among established players, including UPS, DHL, and Amazon, which drives innovation and cost-cutting efforts.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 59.50% |
| Debt Cost | 3.95% |
| Equity Weight | 40.50% |
| Equity Cost | 10.13% |
| WACC | 6.45% |
| Leverage | 146.93% |
FedEx Corporation : Quality Control
FedEx Corporation passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| PCAR | PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, … |
| PAYX | Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It … |
| CAT | Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold … |
| TDG | TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, … |
| UPS | United Parcel Service, Inc. provides letter and package delivery, transportation, logistics, and related services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Paychex
A-Score
1-Year Total Return ->
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TransDigm Group
A-Score
1-Year Total Return ->
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PACCAR
A-Score
1-Year Total Return ->
4
Caterpillar
A-Score
1-Year Total Return ->
5
FedEx
A-Score
1-Year Total Return ->
6
