FedEx Looks Cheap, But Where Is The Cash Flow?

About: FedEx Corporation (FDX), Includes: UPS
by: Oddmund Grotte
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FedEx has a great brand and durable moat.

EPS is consistently higher than free cash flow per share.

The company is capital intensive and has low cash generation.

However, given some tailwind from P/E expansion we can experience 10% yearly returns over the next decade, but it all depends on the global economy.


With an estimated forward P/E of 10-11 FedEx (FDX) looks fairly cheap at these levels. The brand is well known and FedEx has a durable moat. The downside is lack of cash