1.11 | 1.12%
FEDEX CORP's gross profit margin for the third quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. FEDEX CORP has strong liquidity. Currently, the Quick Ratio is 1.63 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.75% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
| Income Statement | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Net Sales ($mil) | 10953.0 | 10564.0 |
| EBITDA ($mil) | 1235.0 | 1290.0 |
| EBIT ($mil) | 636.0 | 747.0 |
| Net Income ($mil) | 361.0 | 521.0 |
| Balance Sheet | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 3372.0 | 2040.0 |
| Total Assets ($mil) | 31830.0 | 28752.0 |
| Total Debt ($mil) | 2242.0 | 1670.0 |
| Equity ($mil) | 16112.0 | 16569.0 |
| Profitability | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Gross Profit Margin | 24.22 | 24.68 |
| EBITDA Margin | 11.27 | 12.21 |
| Operating Margin | 5.81 | 7.07 |
| Sales Turnover | 1.38 | 1.47 |
| Return on Assets | 5.68 | 7.09 |
| Return on Equity | 11.22 | 12.31 |
| Debt | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Current Ratio | 1.91 | 1.59 |
| Debt/Capital | 0.12 | 0.09 |
| Interest Expense | 27.0 | 33.0 |
| Interest Coverage | 23.56 | 22.64 |
| Share Data | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Shares outstanding (mil) | 316.87 | 315.37 |
| Div / share | 0.0 | 0.13 |
| EPS | 1.13 | 1.65 |
| Book value / share | 50.85 | 52.54 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2457560.0 | 1930651.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 60.90 for the Air Freight & Logistics industry and a discount compared to the S&P 500 average of 18.47. For additional comparison, its price-to-book ratio of 1.82 indicates a discount versus the S&P 500 average of 2.36 and a discount versus the industry average of 2.94. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, FEDEX CORP proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FDX 16.19 | Peers 60.90 | FDX 6.10 | Peers 12.09 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. FDX is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. FDX is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| FDX 12.29 | Peers 17.16 | FDX NM | Peers 0.43 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. FDX is trading at a discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. FDX's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| FDX 1.82 | Peers 2.94 | FDX -11.36 | Peers -44.24 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. FDX is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. FDX is expected to have an earnings growth rate that significantly exceeds its peers. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| FDX 0.67 | Peers 1.17 | FDX 3.87 | Peers 2.83 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. FDX is trading at a significant discount to its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. FDX has a sales growth rate that significantly exceeds its peers. |
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