FedEx Price To Sales vs. Cash And Equivalents

FDX Stock  USD 283.43  0.58  0.21%   
Based on the key profitability measurements obtained from FedEx's financial statements, FedEx may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess FedEx's ability to earn profits and add value for shareholders.

FedEx Price To Sales Ratio

0.57

At this time, FedEx's Days Sales Outstanding is fairly stable compared to the past year. Days Of Sales Outstanding is likely to rise to 50.02 in 2024, whereas Price To Sales Ratio is likely to drop 0.57 in 2024. At this time, FedEx's Net Income Applicable To Common Shares is fairly stable compared to the past year. Non Operating Income Net Other is likely to rise to about 1.4 B in 2024, whereas Accumulated Other Comprehensive Income is likely to drop (1.4 B) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.210.2161
Fairly Down
Slightly volatile
Net Profit Margin0.02620.0494
Way Down
Very volatile
Operating Profit Margin0.06710.0634
Notably Up
Pretty Stable
Pretax Profit Margin0.04340.0666
Way Down
Pretty Stable
Return On Assets0.03430.0498
Way Down
Pretty Stable
Return On Equity0.0880.157
Way Down
Pretty Stable
For FedEx profitability analysis, we use financial ratios and fundamental drivers that measure the ability of FedEx to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well FedEx utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between FedEx's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of FedEx over time as well as its relative position and ranking within its peers.
  
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For more information on how to buy FedEx Stock please use our How to Invest in FedEx guide.
Is Air Freight & Logistics space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of FedEx. If investors know FedEx will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about FedEx listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.13)
Dividend Share
5.28
Earnings Share
16.2
Revenue Per Share
355.699
Quarterly Revenue Growth
0.139
The market value of FedEx is measured differently than its book value, which is the value of FedEx that is recorded on the company's balance sheet. Investors also form their own opinion of FedEx's value that differs from its market value or its book value, called intrinsic value, which is FedEx's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because FedEx's market value can be influenced by many factors that don't directly affect FedEx's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between FedEx's value and its price as these two are different measures arrived at by different means. Investors typically determine if FedEx is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FedEx's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

FedEx Cash And Equivalents vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining FedEx's current stock value. Our valuation model uses many indicators to compare FedEx value to that of its competitors to determine the firm's financial worth.
FedEx is rated # 5 in price to sales category among its peers. It is one of the top stocks in cash and equivalents category among its peers creating about  8,689,480,355  of Cash And Equivalents per Price To Sales. At this time, FedEx's Price To Sales Ratio is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the FedEx's earnings, one of the primary drivers of an investment's value.

FedEx Cash And Equivalents vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

FedEx

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.79 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

FedEx

Cash

 = 

Bank Deposits

+

Liquidities

 = 
6.86 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

FedEx Cash And Equivalents Comparison

FedEx is currently under evaluation in cash and equivalents category among its peers.

FedEx Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in FedEx, profitability is also one of the essential criteria for including it into their portfolios because, without profit, FedEx will eventually generate negative long term returns. The profitability progress is the general direction of FedEx's change in net profit over the period of time. It can combine multiple indicators of FedEx, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.4 B-1.4 B
Operating Income5.6 B3.1 B
Income Before Tax5.8 B1.9 B
Total Other Income Expense Net277 M-255 M
Net Income4.3 B1.1 B
Income Tax Expense1.5 B784 M
Net Income Applicable To Common Shares1.1 B1.9 B
Net Income From Continuing Ops4.3 B1.1 B
Non Operating Income Net Other1.3 B1.4 B
Net Interest Income-375 M-393.8 M
Interest Income370 M265.2 M
Change To Netincome819 M1.3 B
Net Income Per Share 17.21  18.07 
Income Quality 1.92  1.82 
Net Income Per E B T 0.74  0.48 

FedEx Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on FedEx. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of FedEx position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the FedEx's important profitability drivers and their relationship over time.

Use FedEx in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if FedEx position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FedEx will appreciate offsetting losses from the drop in the long position's value.

FedEx Pair Trading

FedEx Pair Trading Analysis

The ability to find closely correlated positions to FedEx could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace FedEx when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back FedEx - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling FedEx to buy it.
The correlation of FedEx is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as FedEx moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if FedEx moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for FedEx can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your FedEx position

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Health Management
Health Management Theme
Major hospitals and healthcare providers. The Health Management theme has 46 constituents at this time.
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Additional Tools for FedEx Stock Analysis

When running FedEx's price analysis, check to measure FedEx's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy FedEx is operating at the current time. Most of FedEx's value examination focuses on studying past and present price action to predict the probability of FedEx's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move FedEx's price. Additionally, you may evaluate how the addition of FedEx to your portfolios can decrease your overall portfolio volatility.