FDX - Embedded Expectations Analysis - 2020 11 20
FedEx Corporation (FDX:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 26.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about volume growth, freighter capacity, and transportation constraintsSpecifically, management may lack confidence in their ability to improve their European performance, sustain their International Priority volume growth, and maintain their earnings in non-U.S. jurisdictions. Furthermore, they may be concerned about the sustainability of freighter capacity and potential transportation constraints. Additionally, they may be overstating the reliability of their physical and technological networks, and they may lack confidence in their ability to maintain their liquidity position. Finally, they may have concerns about the sustainability of collaboration between operating companies and the continued increase of integration expenses
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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