FedEx Logistics said it provides air and ocean cargo, warehousing and distribution facility in Memphis.

This slide deck shows that most of FedEx’s competitors, like United Postal Services, C.H. Robinson Worldwide, GXO Logistics, and Expeditors International are heavily concentrated in Texas. These area is major logistics hubs because of their strong infrastructure and economic importance. With many competitors in these region, the market is indeed very competitive.

Even though Texas is polarized by many entity with the Transportation / Air Freight & Logistics. From this data it is clear that firms in Illinois has the highest growth rate of 0.43 as compared to those in Pennsylvania and Texas.
 

In 2023, FedEx closest competitors in the U.S Transportation group Air Freight & Logistics  are (1) United Postal Services, (2) C.H Robinson Worldwide, and (3) GXO Logistics

Note: This supply chain mapping demonstrates, the interconnectedness of industries leverage on FedEx for their distributions and their logistics needs.

In 2023, US Transportation group / Air Freight & Logistics companies are predominately located in Texas and Georgia.

The firms based in Tennessee report significantly higher median revenues, with figures reaching $90.16 billion USD. These numbers highlight the substantial economic presence of Tennessee-based companies compared to other states 

It is obvious from the data that firms in Tennessee are bigger than the rest within the United States

The United States Transportation / Air Freight & Logistics industry is dominated by few large firms. One of FedEx  industry competitor is United Postal Services (UPS) 

In 2023, the Air Freight and Logistics industry significantly outperformed the Airlines, Road, and Rail sectors in terms of financial performance. The Air Freight and Logistics industry achieved substantially higher figures in total revenue, operating income or loss, and net income (measured in millions of USD) compared to the Airline, Road & Rail industries

In 2023 the recent industry comparison conducted within the USA, the air freight & logistics industry continues to demonstrate its leading position relative to other modes of transport. Its superior performance in terms of speed, efficiency, and reliability remains unmatched, reaffirming air freight's pivotal role in handling time-sensitive shipments and meeting urgent delivery requirements.

Comparing FedEx to its global competitors in 2023 reveals (1) Xiamen C&D Inc (China), (2) United Parcel Services (USA) and (3) Deutsche Post AG (Germany).

FedEx is the second largest in size 

US Air Freight & Logistics  industry : More than 50% of firms make made profit in 2023

From the 2023 data, FedEx’s growth rate is -0.05 , which is ideally better than 75% of peers but slightly negative. With a median growth rate of -0.19 which represents average performance in the industry. With growth rate is -0.41, it outperforms 75% of peers within the same industry. In summary FedEx is performing relatively well compared to many competitors but still faces challenges with negative revenue growth. 

FedEx’s gross margin of 21% indicates that it retains 21 cents of profit for every dollar of revenue after covering its direct costs, positioning it ahead of UPS, which has a gross margin of 19%. This slight margin advantage, with FedEx ranked 7th and UPS ranked 9th among competitors, demonstrates FedEx’s superior efficiency in managing production costs relative to revenue. As a result, FedEx shows stronger profitability from core operations, giving it a competitive edge over UPS in terms of operational efficiency and cost management.

FedEx’s operating margin of 6% is lower than both UPS and Expeditors International, which have 10% operating margins. This suggests that FedEx is less efficient in converting its revenue into operating profit, likely due to higher operating costs or lower pricing power compared to its competitors. FedEx may need to focus on improving operational efficiency or cost control to better compete in terms of profitability from its core operations.

From 2023 data, FedEx and its competitor UPS are largest Airfreight & Logistics entities with similar Total Revenue / Total Cost ratios.

2023 data reveals that FedEx is the largest in terms of total revenue.

FedEx has a lower  operating margins than most of its competitor UPS and others.

FedEx is struggling as return on assets ratios is hovering around 0.05 which is lower the most of its competitors 

FedEx's Return on Assets is is lower that 1, but its Net Growth Rate is 0.038 which is high.

UPS operational efficiency metrics are are slightly better than  FedEx, contributing to UPS higher profitability metrics than FedEx

Accordingly to the 2023 data, FedEx is relatively the large in terms of size than most of its competitors such as Expeditors international of Washington, C.H Robinson Worldwide and some others

Expeditors international of Washington has higher profit even though FedEx has ha higher Gross Margin.

While FedEx boasts a higher gross margin, its overall performance lags behind in several key areas, including profitability, growth, financial health, and operational efficiency, where it either matches or falls short compared to industry peers.

Although FedEx has a relatively lower cost of revenue, It has higher SG&A expense  that its competitors. For FedEx, the lower cost of revenue indicates operational efficiency in delivering services, but the higher SG&A expenses suggest significant overhead costs, which could be placing pressure on profitability. This may reflect increased investment in areas like marketing, administration, or sales, and while these efforts could support growth, they may also require better cost control to improve overall financial performance.

FedEx's lower current liabilities of 15.59 compared to competitors suggest a better short-term liquidity position and potentially a stronger ability to meet its short-term obligations. However, the higher total non-current liabilities of 29.94 indicate that FedEx has a greater amount of long-term debt or obligations relative to its competitors. This might reflect a heavier reliance on long-term financing or investments in long-term assets, which could imply higher future financial commitments. Overall, while FedEx appears to manage its short-term liabilities effectively, its higher long-term liabilities could impact its financial stability and flexibility in the long run.

There is a positive correlation with the Gross margin. This means that improvements in Gross Margin are associated with increases in sales or Operating Income, demonstrating a significant positive relationship.

When there is a positive correlation as displayed in the analysis, hence higher revenue growth with higher Gross Margin. Intuitively, suggests the company is successfully growing its revenue while also improving its profitability. This reflects effective operational management, strong competitive positioning, and efficient cost control. It indicates that FedEx’s growth strategies are leading to enhanced financial performance and suggests a positive outlook for the company’s continued success and financial stability.