The Fedex Stock s Price - 1126 Words

FedEx has produced superior financial returns to its shareholder in last couple of year. It has a worldwide business with a broad portfolio of transportation, e-commerce and business services. It consistently ranked among world’s most trusted and admired employers. The revenue has been consistently increasing and expected to reach at 45 billion in next year. EPS is also about 5.5 and the expected P/E ratio is 14.3 which show its growth potential. With the stock’s beta of 1.27 and latest dividend payout ratio of 9%, it can be expected that it will give a superior result in near future and thus it is one of the best alternatives for investment. The FedEx stock’s price range in last year was 101.95 – 155.31. Currently its stock’s price is†¦show more content†¦From 2005, FedEx has decided to eliminate the classified structure of Board and allowed for the annual election of all directors. Investors’ interest has been protected and tried to maintain the full integrity in business operation. It is tried to ensure the disclosure of all the material information and a complete transparency so all investors have access of clear factual information. The next year’s growth rate is expected to be 21.10% which is higher than the Industry and market growth. This higher growth rate is based on it’s a strong financial base, huge market capitalization, higher growth potential, consistent earnings record, diversified portfolio and a reputation it earned in past several years. The estimated beta of firm is about 1.27. This figure is retrieved from a reliable website-www.finance.yahoo.com. To calculate the firm’s required rate of return, CAPM model is applied as follows: One year US Treasury rate of return = 0.10% One year Market return on SP 500 = 24.40% The beta of FedEx stock = 1.27 Hence, the firm’s required rate of return = 0.10 + 1.27*(24.40 – 0.10) = 30.96% For year ended 31st Mar’14, Cash flow from operating activities is $4,264 million and Cash flow from investing activities is $3,551 million. Hence, Free cash flow (FCF) to the firm will be Cash flow from Operating activities less Cash flow from Investing activities, i.e. $4,264 - The Fedex Stock s Price - 1126 Words FedEx has produced superior financial returns to its shareholder in last couple of year. It has a worldwide business with a broad portfolio of transportation, e-commerce and business services. It consistently ranked among world’s most trusted and admired employers. The revenue has been consistently increasing and expected to reach at 45 billion in next year. EPS is also about 5.5 and the expected P/E ratio is 14.3 which show its growth potential. With the stock’s beta of 1.27 and latest dividend payout ratio of 9%, it can be expected that it will give a superior result in near future and thus it is one of the best alternatives for investment. The FedEx stock’s price range in last year was 101.95 – 155.31. Currently its stock’s price is $152.68. The latest dividend was declared on Jun’17, 2014 and it was $0.20 per share. Its annual dividend yield is 0.40%. On Jun’9, 2014, The Board of Director of FedEx declared the quarterly cash dividend of $0.20 per share which was $0.5 higher than the previous quarter’s dividend. Dividend was payable on Jul’13, 2014. Corporate Governance is a set of rule and processes by which a company is directed and controlled. FedEx is committed to highest quality of corporate governance. It has independent board of directors having spirit of corporate governance reform. Compliance standards are met in accordance of Sarbanes-Oxley Act of 2002 and the New York Stock Exchange’s corporate governance listing standards. Code of Business conduct andShow MoreRelatedThe Fedex Stock s Price1126 Words   |  5 PagesFedEx has produced superior financial returns to its shareholder in last couple of year. It has a worldwide business with a broad portfolio of transportation, e-commerce and business services. It consistently ranked among world’s most trusted and admired employers. The revenue has been consistently increasing and expected to reach at 45 billion in next year. EPS is also about 5.5 and the expected P/E ratio is 14.3 which show its growth potential. With the stock’s beta of 1.27 and lates t dividendRead MoreThe Fedex Stock s Price1126 Words   |  5 PagesFedEx has produced superior financial returns to its shareholder in last couple of year. It has a worldwide business with a broad portfolio of transportation, e-commerce and business services. It consistently ranked among world’s most trusted and admired employers. The revenue has been consistently increasing and expected to reach at 45 billion in next year. EPS is also about 5.5 and the expected P/E ratio is 14.3 which show its growth potential. With the stock’s beta of 1.27 and latest dividendRead MoreQuestions On Fedex Financial Performance1048 Words   |  5 Pagesovercome by any of them. In FedEx case, their financials have been their weakest spot. FedEx poor financial performance has been a big problem for the company, proof of this is the downgrade FedEx bonds have had in past years. In UPS, I would say one of their inhibiting factors is their lack of innovation. UPS has not been able to innov ate and work with the technological improvements. Part of this is due of being first in the market, UPS was founded in 1907, FedEx in 1971, FedEx has gained a reputationRead MoreEssay about Fedex Corp. vs. United Parcel Service, Inc.1266 Words   |  6 PagesFedex Corp. vs. United Parcel Service, Inc. FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business, and related information services through focused operating companies competing collectively, and managed collaboratively, under the respected FedEx brand. —FedEx mission statement (excerpt) We serve the evolving distribution, logistics, and commerce needs of our customers worldwide, offering excellence and value inRead MoreBusiness Analysis : United Parcel Service1354 Words   |  6 Pages The company that I chose was United Parcel Service. UPS s main business is the time-definite delivery of packages and documents worldwide. Today, UPS is a global company with one of the most recognized brands in the world. They have become the world s largest package delivery company and a leading global provider of specialized transportation and logistics services. (Ups.com.,2014). Along with UPS this study examines the financial management policies of another competitor in the Air Delivery Read MoreFedex And Ups . Fedex Also Known As Federal Express Is712 Words   |  3 PagesFedex and UPS Fedex also known as Federal Express is an organization that offers transportation, web based business and business administrations with the assistance of a few organizations that are working together under one brand. The organization has four business portions, for example, FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services (FedEx Corporation, 2012). Mean while United Postal Services (UPS) is the world s greatest package movement association and pioneer in giving overallRead MoreA Global Brand Of The Fedex Corporation ( Fedex )1469 Words   |  6 Pageshave all successfully gone global. FedEx Corporation (FedEx), incorporated on October 2, 1997, provides a portfolio of transportation, e-commerce and business services under the FedEx brand. The company offers its services through companies constituting four business segments: FedEx Express, FedEx Ground, FedEx Freight and FedEx Services. FedEx Express offers a range of domestic and international shipping services for delivery of packages and freight. FedEx Ground provides business and residentialRead MoreUps Key Success Factors900 Words   |  4 Pagesfaster than the world market growth. How is FedEx performing? How, if at all, do its performance and plans affect your assessment of the sustainability of UPSs current performance? Federal Express is performing moderately well. The sale have grown by 7.65% compared to the industry 5.49%, However the net profit margin is 5.67% compared to the industry figure of 7.70%. The return on Assets is 8.52% whereas the industry figure is 11.10%. Two of FedEx strategies that have worked are its tie up withRead MoreUps Key Success Factors912 Words   |  4 Pagesfaster than the world market growth. How is FedEx performing? How, if at all, do its performance and plans affect your assessment of the sustainability of UPSs current performance? Federal Express is performing moderately well. The sale have grown by 7.65% compared to the industry 5.49%, However the net profit margin is 5.67% compared to the industry figure of 7.70%. The return on Assets is 8.52% whereas the industry figure is 11.10%. Two of FedEx strategies that have worked are its tie up withRead MoreLiquidity Ratios Are Defined As A Class Of Financial Metrics900 Words   |  4 Pagesare defined as a class of financial metrics that is used to determine a company s ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debt (Liquidity Ratios, 2006). In simple terms this states for every dollar of current debt FedEx has, they have $1.96 to pay it off. Pertaining to FedEx, each of the ratios have significantly increased from the previous year. This may