FedEx Corporation

INTRODUCTION1

OVER VIEW OF THE COMPANY1

Product and services2

Main competitors2

Current Financial Highlights - 20132

NATURE OF THE COMPANY'S BUSINESS3

COMPETITION & INDUSTRY FACTORS4

Overview of the industry4

Competitive advantages of FedEx5

PESTEL Analysis7

Political Factor7

Economic Factors7

Social Factors8

Technological factor9

SWOT Analysis9

Strength9

1. Brand Name and Image9

2. Large scale Operation10

3. Use of Advance Technology10

Weakness10

1. US market dependency10

2. Competitive Segment11

3. Increase in Price11

Opportunities11

1. Expansion Internationally and Internally11

2. Increase Contract with Large Corporation11

3. Cooperative Strategies12

4. Threats12

FINANCIAL ANALYSIS & KEY FINANCIAL RATIOS12

Liquidity Ratio12

Asset Management Ratios13

Debt Management15

Profitability Ratios16

Investors Ratios17

CONCLUSION AND RECOMMENDATION18

REFERENCES19

FedEx Corporation

Introduction

The focus of this paper would be on analyzing a company with respect of their financial and non-financial factors for investment purpose. This paper will cover a comparison of the company with its main competitor and with industry. Beside this, company SWOT Analysis will be conducted in order to highlight where company needs an improvement and areas that can provide future opportunities. Current financial health of the company will be analyzed through employing ratio analysis techniques. The company that is selected for this purpose is FedEx Corporation.

Over View of the company

FedEx is American multinational Courier Company that has been in operation since 1971 by Little Rock, Arkansas as a Federal Express Corporation. Company is involved in courier delivery services and with strong operations in entire world have leads this company to be a leader. This leading position is due to the providing rapid, reliable, time-definite delivery. Company has been operating in more than 220 countries and territories. Operations of FedEx are also in those areas where there is no concept of courier delivery services and with this unique factor along with un-matched air route and transportation infrastructure has given FedEx a leading position in the industry. FedERx is part of Air Delivery & Freight Services industry and Services sector (FedEx Website 2013).

Product and services

FedEx has been operating in four different segments which are:

FedEx Express: Provide Shipping services - international trade.

FedEx Ground: Offers Business and residential delivery services

FedEx Freight: Provide less than truckload freight service with freight-shipping

FedEx Services: Provide back office support service

Main competitors

The main competitors of the FedEx are United Parcel Service -UPS, DHL International GmbH and TNT Express. The following is the performance of FedEx with respect to their competitors and with industry (FedEx Corporation Annual report, 2012).

Source: Yahoo Finance

Items

FedEx Corporation

United Parcel Service -UPS

Industry

Market Cap:

43.92B

94.43B

30.74B

Employees

244,300

222,560

428.29K

Revenue

44.52B

55.03B

55.59B

Gross Margin

0.26

0.15

0.11

EBITDA

5.72B

4.19B

3.29B

Operating Margin

0.07

0.04

0.06

Net Income

1.59B

1.46B

1.525

EPS

4.99

1.53

1.45

Current Financial Highlights - 2013

FedEx Corporation action during 2013 was aggressive in order to increase their future profitability and meet increasing demand of customers in this sluggish economy. Company has increase their return from last 54 consecutive quarters which is an outstanding performance and this trend has been expected to increase in 2014 as well. The increase in revenue was due to increase yield and average daily shipments and also acquisition in Brazil, France, Poland, Mexico, and India are the major contributors for this strong return.

Company posted Revenue in 2013 worth of $44.3 with Operating Margin 5.8% and Stock Price on company end of May was $96.34. From the below graph it is clear that FedEx corporation ...