FEDEX CORP. $155 (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 282.4 million; Market cap: $43.8 billion; Price-to-sales ratio: 0.9; Dividend yield: 0.6%; TSINetwork Rating: Average; www.fedex.com) has received approval from European regulators for its deal to buy Netherlands-based courier TNT Express NV. FedEx expects to complete the purchase by October 31, 2015.
The company will pay $4.8 billion. It held cash of $3.5 billion as of August 31, 2015, so it will borrow the funds it needs. Its long-term debt of $7.2 billion is a low 16% of its market cap, so it has lots of room to borrow more, especially at today’s low interest rates.
FedEx is a buy.