Why FedEx Corporation Shareholders Have Something to Worry About - Motley Fool
The package delivery company and its key rival United Parcel Service are facing increasing needs for capital spending in order to support growth.
It's well known that package delivery giants FedEx Corporation (NYSE:FDX) and United Parcel Service (NYSE:UPS) have a long-term growth opportunity from burgeoning e-commerce deliveries, but what's less understood is the increasing demand on the networks. It's creating the necessity for increased capital expenditures, and that's likely to negatively impact free cash flow generation in the future. Let's take a closer look.
The package delivery company and its key rival United Parcel Service are facing increasing needs for capital spending in order to support growth.
It's well known that package delivery giants FedEx Corporation (NYSE:FDX) and United Parcel Service (NYSE:UPS) have a long-term growth opportunity from burgeoning e-commerce deliveries, but what's less understood is the increasing demand on the networks. It's creating the necessity for increased capital expenditures, and that's likely to negatively impact free cash flow generation in the future. Let's take a closer look.
