Fedex Corporation Stock Fair Value Calculation – FedEx Shares Soar During Strong Trading Session
December 14, 2023
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FEDEX ($NYSE:FDX): On Tuesday, the stock of FedEx Corporation (FDX) saw its shares surge during a strong trading session. FedEx is a global transportation and logistics company that offers an extensive portfolio of transportation, e-commerce and business services. The increase in the company’s stock was attributed to its positive financial results for the second quarter. This was driven by improved performance in its Express and Ground segments, as well as growth in its Freight segment.
In addition, the company is focusing on cost-cutting initiatives, such as the recent closure of several of its distribution centers in the U.S., which should help improve its margins in the future. Overall, the strong performance of FedEx’s stock during Tuesday’s trading session reflects investors’ continued confidence in the company’s long-term growth prospects.
Share Price
Wednesday was a strong trading session for FEDEX CORPORATION, with their stock opening at $272.0 and closing at $273.8, up 0.3% from the previous closing price of $273.0. This increase was a welcome change after a period of stagnation in the FEDEX stock price, which has seen minimal increases over the past few months. Despite the modest increase in share prices, investors took note of the positive news and responded positively to the positive momentum.
The company continues to make progress on its strategic initiatives and is focusing on long-term growth, which may have helped to boost investor confidence in the stock. With more news expected to come out in the weeks ahead, investors are hopeful that this momentum will continue and FEDEX stock prices will remain high. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Fedex Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 88.59k | 4.17k | 5.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fedex Corporation. More…
| Operations | Investing | Financing |
| 9.47k | -6.14k | -3.08k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Fedex Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 87.58k | 61.04k | 105.54 |
Key Ratios Snapshot
Some of the financial key ratios for Fedex Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.4% | 18.0% | 7.2% |
| FCF Margin | ROE | ROA |
| 3.7% | 15.2% | 4.6% |
Analysis – Fedex Corporation Stock Fair Value Calculation
At GoodWhale, we have analyzed the financials of FEDEX CORPORATION to provide a clear insight into the company. Our proprietary Valuation Line has estimated the intrinsic value of FEDEX CORPORATION share to be around $242.2. Currently, the stock is being traded at $273.8, which is a fair price that is 13.1% overvalued. Therefore, investors should take this into consideration before making an investment decision. More…
Peers
In the business world, companies are constantly vying for market share and mind share. Two companies that have been in competition for years are FedEx Corp and its main competitor United Parcel Service Inc. (UPS). The two companies have been in competition since the early days of the express shipping industry and they continue to compete for business today. Another company that FedEx competes with is United Airlines Holdings Inc. (UAL). UAL is an airline holding company that operates United Airlines, one of the largest airlines in the world. United and FedEx have been in competition for business since United launched its cargo operation in the early 1990s. Finally, Blink Charging Co (BLNK) is a company that provides electric vehicle (EV) charging stations. FedEx has been investing in EV technology and has been installing EV charging stations at its facilities around the world.
– United Parcel Service Inc ($NYSE:UPS)
Founded in 1907, United Parcel Service Inc is a package delivery and supply chain management company. The company has a market cap of 144.94B as of 2022 and a Return on Equity of 58.11%. UPS delivers packages and freight to more than 220 countries and territories around the world. The company has more than 500,000 employees and operates a fleet of more than 100,000 vehicles.
– United Airlines Holdings Inc ($NASDAQ:UAL)
United Airlines Holdings Inc is an American airline headquartered in Chicago, Illinois. It is the world’s third-largest airline when measured by revenue, after American Airlines and Delta Air Lines. United operates a large domestic and international route network, with an extensive presence in the Asia-Pacific region. The airline has a fleet of over 700 aircraft and employs over 86,000 people.
– Blink Charging Co ($NASDAQ:BLNK)
Blink Charging Co. is a provider of electric vehicle (EV) charging equipment and services. The company offers Blink EV charging stations and related products and services to consumers, businesses, governments, and utilities. Blink Charging Co. has a market cap of 675.75M as of 2022 and a Return on Equity of -29.61%.
Summary
FedEx Corporation (FDX) has seen a strong performance in the market recently, with shares up more than 2% over the past five trading days. The company also highlighted its successful shift to digital services such as FedEx Express Freight and FedEx SameDay City services as factors that aided in the financial success. These initiatives could help to boost the company’s performance in the future.
