FDX

Fedex Corp

Consumer, Industrial/Transportation


Presented:02/13/2023
Price:$211.66
Cap:$53.42B
Current Price:$265.92
Cap:$64.97B

Presented

Date02/13/2023
Price$211.66
Market Cap$53.42B
Ent Value$80.04B
P/E Ratio16.63x
Book Value$75.83
Div Yield1.98%
Shares O/S252.40M
Ave Daily Vol2,247,603
Short Int1.76%

Current

Price$265.92
Market Cap$64.97B
FedEx Corp. provides a broad portfolio of transportation, e-commerce and business services under the FedEx brand. It operates through the following segments: FedEx Express, FedEx Ground, FedEx Freight, FedEx Services, and Corporate, Other & Eliminations. The FedEx Express segment consists of domestic and international shipping services for delivery of packages and freight. The FedEx Ground segment focuses on small-package ground delivery services. The FedEx Freight segment offers less-than-truckload freight services across all lengths of haul. The FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and certain back-office functions. The Corporate, Other & Eliminations segment includes corporate headquarters costs for executive officers and certain legal and finance functions, as well as certain other costs and credits not attributed to the firm's core business. The company was founded by Frederick Wallace Smith on June 18, 1971, and is headquartered in Memphis, TN.

Publicly traded companies mentioned herein: FedEx Corp. (FDX), Old Dominion Freight Line Inc. (ODFL), United Parcel Service, Inc. (UPS)

Highlights

The presenter is long shares of FedEx (FDX) based on significant recent cost initiatives and future goals, new management’s alignment with investors, investor rotation out of rails and into trucking, and the Company’s relative pricing power as the economy improves. While volumes have been declining at FedEx’s Express and Ground segments, Freight has been able to offset some of this and is the focus of the thesis. The presenter believes the stock is cheap with a new management team heavily focused on ROIC that he thinks will help the company to achieve the laid out cost cutting and drive EPS to $25+ by FY26. 

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Idea Discussion

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