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FedEx Corp FDX

Morningstar Rating
$267.80 −4.38 (1.61%)
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Company Report

FedEx: FedEx and the USPS Won't Renew Airlift Contract; UPS Wins a Portion

FedEx announced that after a period of "extensive discussions," it will not renew its contract with the United States Postal Service, or USPS, which will expire on Sept. 29. Recall that for roughly the past 20 years, FedEx express has provided airlift transportation for several USPS products within the US, including first class mail and priority mail express. Overall, this does not come as a surprise given management's commentary in recent quarters, which (as we heard it) seemed to hint that material service and pricing changes were necessary in order for a deal to be mutually beneficial and work effectively.

Price vs Fair Value

FDX is trading at a 13% premium.
Price
$272.18
Fair Value
$611.00
Uncertainty
High
1-Star Price
$418.00
5-Star Price
$133.00
Economic Moat
Vnqjz
Capital Allocation
Qxlcbqvb

Bulls Say, Bears Say

Bulls

Despite near-term normalization off lofty levels, FedEx's US ground and international express package delivery operations should enjoy positive longer-term tailwinds from e-commerce growth.

Bears

Lingering sluggish retail restocking will create year-over-year volume growth headwinds into the first half of calendar 2024.

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News

Trading Information

Previous Close Price
$272.18
Day Range
$265.90271.72
52-Week Range
$213.81291.27
Bid/Ask
$267.30 / $267.79
Market Cap
$65.90 Bil
Volume/Avg
1.2 Mil / 2.1 Mil

Key Statistics

Price/Earnings (Normalized)
15.59
Price/Sales
0.78
Dividend Yield (Trailing)
1.82%
Dividend Yield (Forward)
1.82%
Total Yield
4.30%

Company Profile

FedEx pioneered overnight delivery in 1973 and remains the world's largest express package provider. In its fiscal 2023, which ended May 2023, FedEx derived 47% of revenue from its express division, 37% from ground, and 11% from freight, its asset-based less-than-truckload shipping segment. The remainder comes from other services, including FedEx Office, which provides document production/shipping, and FedEx Logistics, which provides global forwarding. FedEx acquired Dutch parcel delivery firm TNT Express in 2016. TNT was previously the fourth-largest global parcel delivery provider.
Sector
Industrials
Industry
Integrated Freight & Logistics
Stock Style Box
Large Value
Total Number of Employees
787,400

Competitors

Valuation

Metric
FDX
ODFL
DHL
Price/Earnings (Normalized)
15.5938.1613.13
Price/Book Value
2.5211.002.05
Price/Sales
0.788.060.58
Price/Cash Flow
5.7229.125.86
Price/Earnings
FDX
ODFL
DHL

Financial Strength

Metric
FDX
ODFL
DHL
Quick Ratio
1.171.930.74
Current Ratio
1.312.100.95
Interest Coverage
16.463,524.667.22
Quick Ratio
FDX
ODFL
DHL

Profitability

Metric
FDX
ODFL
DHL
Return on Assets (Normalized)
5.74%24.05%5.51%
Return on Equity (Normalized)
19.12%31.48%16.07%
Return on Invested Capital (Normalized)
8.22%30.55%9.19%
Return on Assets
FDX
ODFL
DHL
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Integrated Freight & Logistics Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
UPS
United Parcel Service Inc Class BNgwvwmxjQwg$127.1 Bil
DPSTF
DHL GroupLjxtwm$49.5 Bil
DHLGY
DHL Group ADRHtljmqbqSlyqwtr$49.1 Bil
JBHT
JB Hunt Transport Services IncNtvhqhqfdJmzywqm$20.1 Bil
EXPD
Expeditors International of Washington IncWvlnmvmrvTsp$16.7 Bil
ZTO
ZTO Express (Cayman) Inc ADRJkkxlddqhXzcxzvc$16.4 Bil
CHRW
C.H. Robinson Worldwide IncYjpmcjxscLzp$8.4 Bil
LSTR
Landstar System IncVpbzpyhdlhFzjd$6.5 Bil
HUBG
Hub Group Inc Class ADbrlwxcnTplqcy$2.6 Bil

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