Fedex Corporation Stock Intrinsic Value – FedEx Pilots Union Approves Tentative Agreement with 30% Pay Increase
June 14, 2023
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FEDEX ($NYSE:FDX): FedEx Corporation, one of the world’s leading logistics and transportation companies, recently reached an agreement with its pilot union that has been approved by the union’s leadership. The tentative agreement between the two parties includes a 30% pay increase for FedEx pilots. This is a major victory for the union and its members, who have been pushing for improved wages and benefits for over three years. The agreement includes annual pay increases, improved retirement provisions, and improved insurance benefits. The pilots’ union stated that they believed it was a fair compromise and were happy to have reached an agreement with FedEx that respects the rights and contributions of its members.
This agreement will provide a much-needed financial boost for the pilots and their families. It also sets an important precedent for other pilot unions across the country, showing that such negotiations are possible and can result in significant pay increases for employees. FedEx is proud to have successfully negotiated an agreement with its pilot union and looks forward to continuing to provide excellent service and value for its customers.
Analysis – Fedex Corporation Stock Intrinsic Value
At GoodWhale, we conducted an analysis of FEDEX CORPORATION‘s fundamentals. Our proprietary Valuation Line revealed that the fair value of FEDEX CORPORATION share is around $258.8. However, FEDEX CORPORATION stock is currently traded at $228.9, indicating a fair price that is undervalued by 11.6%. This presents a strong opportunity to invest in FEDEX CORPORATION stock, as it is now trading at a discount from its fair value. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Fedex Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 92.62k | 2.99k | 3.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fedex Corporation. More…
| Operations | Investing | Financing |
| 8.9k | -6.79k | -2.61k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Fedex Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 85.78k | 61.04k | 95.54 |
Key Ratios Snapshot
Some of the financial key ratios for Fedex Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.0% | 15.4% | 5.0% |
| FCF Margin | ROE | ROA |
| 2.3% | 11.9% | 3.4% |
Peers
In the business world, companies are constantly vying for market share and mind share. Two companies that have been in competition for years are FedEx Corp and its main competitor United Parcel Service Inc. (UPS). The two companies have been in competition since the early days of the express shipping industry and they continue to compete for business today. Another company that FedEx competes with is United Airlines Holdings Inc. (UAL). UAL is an airline holding company that operates United Airlines, one of the largest airlines in the world. United and FedEx have been in competition for business since United launched its cargo operation in the early 1990s. Finally, Blink Charging Co (BLNK) is a company that provides electric vehicle (EV) charging stations. FedEx has been investing in EV technology and has been installing EV charging stations at its facilities around the world.
– United Parcel Service Inc ($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) is a global delivery services provider that has seen positive returns in recent months. Investors looking to buy FDX may be encouraged by the news that the company’s pilots union leadership has recently approved a tentative agreement that includes a 30% pay raise. This increase in wages is expected to be beneficial to FDX by increasing employee morale and productivity, thus potentially leading to higher profits.
FDX shares have seen a strong upward trend over the past several months, largely due to the company’s record-breaking earnings and favorable market outlook. With its improved competitive position and strong financial performance, FDX offers investors potential upside and potential to benefit from a favorable market outlook.
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