We are pet friendly!
Our CMO and CSO (Chief Morale Officer and Chief Security Officer) nap under DB’s desk or in front of it, everyday that he is in the office.
They are 100% behind anything we do. In January 2023, the day after we published a negative report on UPS. We outlined why the looming Teamster contract renewal negotiations would set in motion a chain of negative events which would result in the operating margin, ROIC, and free cash flow production of FDX and UPS would flip. That over time, as FDX’s metrics improved and UPS’s deteriorated, the valuations of the companies should also flip. Although the gap had almost completely closed, and revenue they were generating was as similar as it had ever been, we outlined our fear. With UPS being awarded an enterprise value that was 3X the EV of FDX and a market capitalization that was 2.8X the market cap of FDX, if they swapped the financial return metrics (operating margin, ROIC, and free cash flow yield) shouldn’t they swap EV and market cap multiples?
The following day, they aggressively barked at the UPS driver. Made it very clear to him, they did not like him anymore and began welcoming the FDX driver with wagging tails.
Mailing address: Headquarters physical address:
7750 Maryland Avenue P.O. Box 16808 11006 Manchester Road
Clayton, MO 63105 St. Louis, MO 63122
roberta@broughtoncapital.com info@broughtoncapital.com
314-308-5911