Update shared on04 Aug 2025
Fair value Decreased 5.74%Despite higher consensus revenue growth forecasts, a lower future P/E suggests increased caution around profitability or risk, leading to a reduced fair value estimate for United Parcel Service from $112.17 to $105.73.
What's in the News
- UPS is deploying advanced robotics in warehouse logistics alongside peers (FedEx, Walmart, DHL) to automate tasks like loading/unloading, leveraging AI and sensors to improve efficiency and reduce costs, though challenges with certain package types persist (Wall Street Journal).
- UPS entered a three-year Digital Channel Program Agreement with PeriShip Global, providing access to UPS services and APIs at promotional rates, enhancing logistics for time-sensitive and perishable shipments with features like proactive monitoring and weather tracking (Key Developments).
- No shares were repurchased in Q2 2025; UPS has completed its previously announced buyback, totaling 24.8 million shares (2.9% of shares outstanding) for $3.67 billion (Key Developments).
- UPS conducted substantial share buybacks in Q1 2025, repurchasing 8.6 million shares (1.01% of shares outstanding) for $992.1 million as part of its previously announced program (Key Developments).
- While executing multiple fixed-income offerings in May 2025, UPS added prominent financial institutions including UBS, Goldman Sachs, J.P. Morgan, Morgan Stanley, RBC, TD Securities, U.S. Bancorp, SG Americas, BNP Paribas, BofA Securities, and Wells Fargo as co-lead underwriters (Key Developments).
Valuation Changes
Summary of Valuation Changes for United Parcel Service
- The Consensus Analyst Price Target has fallen from $112.17 to $105.73.
- The Consensus Revenue Growth forecasts for United Parcel Service has significantly risen from 0.7% per annum to 1.5% per annum.
- The Future P/E for United Parcel Service has fallen from 16.21x to 15.08x.
Disclaimer
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