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Continental Carriers Inc. Case Analysis

In: Business and Management

Submitted By jtanan
Words 5723
Pages 23
Blue Sky University Student Research
FedEx Corporation
Tanan Jargalsaikhan

Table of Contents Key Information 3 Business Description 4 Industry Overview and Competitive Positioning 5 Porter’s Five Forces model 5 SWOT analysis 7 Financial Analysis 8 Cash Flows 8 Common size statements 9 Evaluating Internal Liquidity 11 Evaluating Operating Performance 12 Valuation 14 Dividend Discount Model 14 Present Value of Free Cash Flow to Equity 15 Present Value of Operating Free Cash Flow 17 Relative Valuation 19 Investment Risks 20 Investment Summary 21 Conclusion 22

* Key Information

Company name: FEDEX CORPORATION
Exchange: New York Stock Exchange (NYSE)
Ticker symbol: FDX
Sector: Services
Industry: Air Delivery and Freight Services
Price: $166.11 (as of 30 January, 2015)
Price Target: $189.13
Recommendation: HOLD / BUY

* * Business Description

FedEx Corporations (“FedEx”) is one of the largest operating delivery service companies within the United States as well as globally. The company was first founded in 1971 and today operates in over 220 countries with its headquarters based in Memphis, Tennessee. The company has over 300,000 employees worldwide. The revenue for 2014 was $45,6 billion and the net income was $2,1 billion. The firm is the prevailing leader within the delivery and freight service industry. This is substantiated through sales, profit, and growth. FedEx’s revenue is one that still manages to continuously increase.

FedEx provides a broad portfolio of services, which includes transportation, e-commerce, and the employ of business services through companies who either compete collectively, operate independently, or work collaboratively under the respected FedEx brand. The primary operating companies are Federal Express Corporation, the world’s largest express...

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