NYSE:FDX
$79.48
(2/9 12:33PM)
+3.6%
| Open | $77.27 |
Mkt Cap | $24.0 Billion |
| High | $79.72 |
52Wk High | $92.59 |
| Low | $76.96 |
52Wk Low | $34.02 |
| Volume | 2.5 Million |
Avg Vol 10D | 3.2 Million |
Ockham's Rating/Recommendation Summary
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FDX Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, FDX the high and low end of the Price to Sales per share ratios are 1.04x and 0.67x respectively.
Notice that FDX's current Price to Sales per share ratio is 0.54x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $76.69, FDX is 37% below where we would expect to see it. This will beneficially factor into our final analysis of FDX as it is not often that this stock sinks to these levels.
FDX Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently FDX is significantly above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for FDX to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 12.14 and a 7.40 low over the same period.
Therefore, at the current price of $76.69 and a Price to Cash Earnings ratio of 13.94, FDX is significantly overvalued. This diminishes the attractiveness of FDX until we see either a significant increase in cash earnings or a decline in price. A decline of the Price to Cash Earnings ratio of 42% is needed just to return to the historical cash earnings multiple.
FDX Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from FDX against the historic high and low levels over an available data range. Because FDX has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In FDX’s case, the estimated annual dividend is $0.44 producing a current dividend yield of 0.57%. The highest dividend yield from FDX in recent history was 1.29% while the lowest dividend yield was 0.00%. Management at FDX needs to get the current dividend yield above the historical median before we are comfortable from this point of view.
Delevoping Economies and Where FDX Fits In on Power Lunch
FedEx Corporation and an emerging market growth strategy were discussed recently on FDX.
FedEx Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Ranking all stocks in terms of news coverage offers some interesting data. In the case of FDX, it is getting significantly more attention in recent news coverage than we are used to seeing. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… FEDEX hauling that precious cargo. This is not part of the china trade war. > > what did we do? > > I think they ran out. > > the pandas were born in america. …”
Its All About Earnings: Fast Money Talks About FDX
The name of the game in business is profit, and we always pay attention for FDX news as it relates to earnings.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that FedEx Corporation has been talked about more than normal recently. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe FedEx Corporation will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on FDX.
“… FEDEX when they gave us lousy guidance a month ago was pretty bad. You put all these things together and it doesn't paint a rosy picture. > > bat bamt baltic index down today. …”
See More News on FDX from Fast Money
As always, the latest news on FDX is available to Ockham clients through RazorWire, and it was mentioned recently on Fast Money.
FedEx Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Ranking all stocks in terms of news coverage offers some interesting data. In the case of FDX, it is getting significantly more attention in recent news coverage than we are used to seeing. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… let me ask you something, if you look at FEDEX at $90, $91 when things seemed better and the obama administration isn't facing the challenges it is now, would you say FEDEX then ... …”
Fast Money Has News on FDX
News has broken via the television and viral blogs regarding FDX, so investors should take an interest in learning what was said.
The Ockham valuation currently has a Fairly Valued stance on FDX because it trades within the price range that we would expect given current market conditions and fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards FDX and think that it will generally perform in-line with the S&P 500. In comparison to the other stocks that we follow, FedEx Corporation has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… You want to go to FEDEX? Since their december announcement that stock is down about 9%. That stock topped out at $92 now it's around $80 after they came out and gave us lousy ... …”
Notice a Discussion Covering FDX Appeared Recently in the Financial News
The latest news from Fox Business on FDX is available through Ockham's news analytics platform RazorWire.
Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards FDX and think that it will generally perform in-line with the S&P 500. In comparison to the other stocks that we follow, FedEx Corporation has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. The Ockham valuation currently has a Fairly Valued stance on FDX because it trades within the price range that we would expect given current market conditions and fundamentals.
“… Same with FEDERAL EXPRESS and these brilliant ideas that came out of people being creative and working hard to get it off the ground. > > …”
Stay Current on FDX's News on Mad Money
As always, the latest news on FDX is available to Ockham clients through RazorWire, and it was mentioned recently on Mad Money.
The Ockham valuation currently has a Fairly Valued stance on FDX because it trades within the price range that we would expect given current market conditions and fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards FDX and think that it will generally perform in-line with the S&P 500. In comparison to the other stocks that we follow, FedEx Corporation has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… What do you think about FEDEX? > > as much as I like FEDEX and I do like FEDEX, the conference call a year ago, saying we feel like things have bottomed. I more prefer u. P. ... …”
See More News on FDX from Squawk On The Street
As always, the latest news on FDX is available to Ockham clients through RazorWire, and it was mentioned recently on Squawk On The Street.
The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. Ranking all stocks in terms of news coverage offers some interesting data. In the case of FDX, it is getting significantly more attention in recent news coverage than we are used to seeing. FedEx Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… A lot of other things -- unions, whether this could mean you're not going to get card checked and that could be good for walmart and FEDEX. …”
See Why FedEx Corporation News Was Discussed on Fast Money
The latest news from Fast Money on FDX is available through Ockham's news analytics platform RazorWire.
Ranking all stocks in terms of news coverage offers some interesting data. In the case of FDX, it is getting significantly more attention in recent news coverage than we are used to seeing. FedEx Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… If you go back to FEDEX and numbers we had gotten a few weeks ago, amazon's one of these companies that should be a beneficiary of some of that growth. …”
More News Than Normal on FDX from Closing Bell
Something important is going on with FDX today, as it is getting a lot of attention on business television and influential blogs.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, FDX has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe FedEx Corporation will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on FDX.
“… we want to keep the cyclical we've been overweight industrial, overweight materials for quite a while and stocks within those glups we like are things like FEDEX, one their ... …”
Closing Bell: FDX is Among Most Active Stocks in the News Today
We are observing a lot of attention being paid to FDX in the news, so if you hold the stock you may want to take a look at what is going on.
The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; FDX has received less coverage from the financial media in business television and blogs. FedEx Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… And FEDERAL EXPRESS contributing to the huge gains we've seen in the dow transportation average. Up 86 points and saw strength in the railroads today, they contributed to that. …”