Established in 1971, FedEx Corporation (FDX) is a leading transportation, e-commerce, and business services company with operations in the US and internationally. Its FedEx Express unit provides express delivery, small-package ground delivery, freight transportation, time-critical transportation solutions, and cross-border e-commerce technology services. The FedEx Ground division offers guaranteed delivery services to both businesses and homes. The FedEx Freight segment provides less-than-truckload shipping services, with a fleet of 30,000 vehicles and 400 service centers. The FedEx Services unit offers sales, marketing, IT, customer service, communications, billing, back-office support and other support services. The Corporate, Other and Eliminations division offers integrated supply chain management, specialty transportation, customs brokerage, ocean and air freight forwarding, document and business services, and retail package transportation access to customers.
as of February 8, 2023
Is it worth $100 billion with UPS valued at $160 billion? Yes. That means the current $50 billion cap makes the stock undervalued. UPS generates $11 billion a year in net earnings on $23.6 billion in gross profit and $101 billion in revenue. FedEx generates a very similar amount of gross profit ($23 billion) on slightly lower revenue of $94 billion, but less of that gets pushed to the bottom line. FedEx’s net income was just $3.3 billion in the last 12 months while UPS earned over $11.5 billion. UPS will likely remain the leader, but FedEx could fix its debt problem and close ground.
