Opinion on  FedEx Corp (FDX)     Sector: Transportation  >  Industry: Air Courier
FedEx Corporation

FedEx Corporation, together with its subsidiaries, provides transportation, e-commerce, and business services. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Kinko’s. The FedEx Express segment offers various shipping services for the delivery of packages and freight. This segment also provides international trade services specializing in customs brokerage and global cargo distribution; international trade advisory services; and publishes customs duty and tax information, as well as provides Global Trade Data, an information tool that allows customers to track and manage imports. The FedEx Ground segment provides business and residential money-back-guaranteed ground package delivery services. The FedEx Freight segment offers regional next-day and second-day, and interregional less-than-truckload (LTL) freight services, as well as long-haul LTL freight services. The FedEx Kinko’s segment provides document services, such as printing, copying, and binding services; and business services, such as high-speed Internet access and computer rental, videoconferencing, signs and graphics production, and direct mail services. This segment also offers retail products, such as specialty papers, greeting cards, printer cartridges, stationery, and office supplies, as well as provides Web-based services. The company also offers supply chain solutions, including critical inventory logistics, transportation management, fulfillment, and fleet services. FedEx Corporation, formerly known as FDX Corporation, was founded in 1971 and is headquartered in Memphis, Tennessee.

Analysts'  Recommendation:	Buy
30 Days Ago:	Buy
Analysts' Target:	$109
Members' Target:

Analysts' Targets
Avondale Partners	$117
Mkt Outperform
Tuesday, April 08, 2008
Lehman Brothers	$106
Overweight
Monday, March 24, 2008

What The Brokers Say

Trades for 19-Jun-2008

Time	Volume / Share Price
11:59	1 @ $81.32
11:59	1 @ $81.31
11:59	1 @ $81.31
11:59	1 @ $81.31
11:59	1 @ $81.31

Income & Efficiency

	Latest	F'cast
Div Yield	0.4%	0.5%
Div Cover	17.8	14.8
Op Mrgn	9.3%	7.8%
ROCE	40.6%

Valuation

<th class="dataRegularHeader" style="text-align: left;" width="40%">   </th> <th class="dataRegularHeaderR" width="30%"> Latest </th> <th class="dataRegularHeaderR" width="30%"> F'cast </th>

P/E	12.6	13.9
PEG	1.2	n/a
Pr/Revenue	0.7	0.7
Pr/Book	2.0

Growth

<th class="dataRegularHeader" style="text-align: left;" width="40%">   </th> <th class="dataRegularHeaderR" width="30%"> Latest </th> <th class="dataRegularHeaderR" width="30%"> F'cast </th>

Revenue	9.0%	7.2%
PBT	10.9%	-9.0%
EPS	10.6%	-9.7%
DPS	12.1%	8.6%

Fedex Corp Fundamentals

<th scope="col" class="dataRegularHeader" width="16%"> Year Ending </th> <th scope="col" class="dataRegularHeaderR" width="14%"> Revenue ($m) </th> <th scope="col" class="dataRegularHeaderR" width="15%"> Pre-tax ($m) </th> <th scope="col" class="dataRegularHeaderR" width="10%"> EPS </th> <th scope="col" class="dataRegularHeaderR" width="8%"> P/E </th> <th scope="col" class="dataRegularHeaderR" width="7%"> PEG </th> <th scope="col" class="dataRegularHeaderR" width="10%"> EPS Grth. </th> <th scope="col" class="dataRegularHeaderR" width="10%"> Div </th> <th scope="col" class="dataRegularHeaderR" width="10%"> Yield </th>

31-May-03	22,487.00	1,338.00	279.00¢	22.9	1.5	+15%	15.00¢	0.2%
31-May-04	24,170.00	1,319.00	280.00¢	26.3	n/a	0%	24.00¢	0.3%
31-May-05	29,363.00	2,313.00	481.00¢	18.6	0.3	+72%	29.00¢	0.3%
31-May-06	32,294.00	2,899.00	594.00¢	18.4	0.8	+24%	33.00¢	0.3%
31-May-07	35,214.00	3,215.00	657.00¢	17.0	1.5	+11%	37.00¢	0.3%

Fedex Corp Forecasts

<th scope="col" class="dataRegularHeader" width="16%"> Year Ending </th> <th scope="col" class="dataRegularHeaderR" width="14%"> Revenue ($m) </th> <th scope="col" class="dataRegularHeaderR" width="15%"> Pre-tax ($m) </th> <th scope="col" class="dataRegularHeaderR" width="10%"> EPS </th> <th scope="col" class="dataRegularHeaderR" width="8%"> P/E </th> <th scope="col" class="dataRegularHeaderR" width="7%"> PEG </th> <th scope="col" class="dataRegularHeaderR" width="10%"> EPS Grth. </th> <th scope="col" class="dataRegularHeaderR" width="10%"> Div </th> <th scope="col" class="dataRegularHeaderR" width="10%"> Yield </th>

31-May-08	37,748.87	2,926.16	592.97¢	13.9	n/a	-10%	40.17¢	0.5%
31-May-09	40,367.67	3,072.68	607.51¢	13.6	5.5	+2%	41.86¢	0.5%
31-May-10	43,043.18	3,536.56	690.32¢	12.0	0.9	+14%	45.67¢	0.5%

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Covering analysts: Argus Research, Avondale Partners, BB & T Capital Markets, Citigroup Investment Research, Dresdner Kleinwort, HSBC Securities, Lehman Bros, Longbow Research, Merrill Lynch, Morgan Keegan, Morgan Stanley, Raymond James & Associates, Robert W. Baird & Co, Standard & Poors, Stifel Nicolaus, UBS