FDX - Embedded Expectations Analysis - 2018 02 08
─ FedEx Corporation (FDX:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Assets, with a 1.7x Uniform P/B, implying bullish expectations for the firm. Moreover, management is confident about FedEx Express, China, and pricing─ Specifically, management is confident in the success of FedEx Express, despite the impact of the TNT Express cyberattack, and in their 50 orders and 50 options of the Cessna C408s. Furthermore, they are confident in being the only foreign company with a wholly owned domestic and international business in China, and in their domestic business there being more focused on the B2B market, thus not competing with the domestic e-commerce market. Additionally, they are confident that their business is a team game between operations, sales, pricing, solutions, and marketing, and that dimensional density based pricing offers a much more simplified alternative to the outdated class-based system
FedEx provides transportation, e-commerce and business services through companies under the FedEx brand. These companies are included in the following segments: Federal Express Corporation, including TNT Express B.V., is an express transportation company; FedEx Ground Package System, Inc., which is a provider of small-package ground delivery services; FedEx Freight Corporation, which is a provider of less-than-truckload freight services; and FedEx Corporate Services, Inc., which provides sales, marketing, information technology, communications, customer service, technical support, billing and collections services, and certain back-office functions.
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