United Parcel Service
Market Cap
US$99.6b
Last Updated
2019/10/22 23:42 UTC
Data Sources
Company Financials +
Executive Summary
United Parcel Service, Inc. provides letter and package delivery, specialized transportation, logistics, and financial services.
Snowflake
Fundamentals
Established dividend payer with mediocre balance sheet.
Similar Companies
Share Price & News
How has United Parcel Service's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-0.3%
UPS
1.2%
US Logistics
0.07%
US Market
1 Year Return
1.6%
UPS
-4.9%
US Logistics
8.9%
US Market
Return vs Industry: UPS exceeded the US Logistics industry which returned -4.9% over the past year.
Return vs Market: UPS underperformed the US Market which returned 8.9% over the past year.
Shareholder returns
| UPS | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.3% | 1.2% | 0.07% |
| 30 Day | -3.8% | -0.4% | -0.3% |
| 90 Day | 1.5% | -0.9% | -1.6% |
| 1 Year | 5.2%1.6% | -2.7%-4.9% | 11.3%8.9% |
| 3 Year | 18.5%7.7% | 16.7%8.9% | 46.3%36.8% |
| 5 Year | 31.6%12.8% | 26.0%13.0% | 62.1%44.3% |
Price Volatility Vs. Market
How volatile is United Parcel Service's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Is United Parcel Service, Inc.'s (NYSE:UPS) CEO Overpaid Relative To Its Peers?1 month ago | Simply Wall St
Is United Parcel Service, Inc. (NYSE:UPS) Worth US$123 Based On Its Intrinsic Value?1 month ago | Simply Wall St
Will United Parcel Service, Inc.'s (NYSE:UPS) Earnings Grow In The Next 12 Months?Valuation
Is United Parcel Service undervalued compared to its fair value and its price relative to the market?
1.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: UPS ($116.1) is trading below our estimate of fair value ($117.69)
Significantly Below Fair Value: UPS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: UPS is good value based on its PE Ratio (21.1x) compared to the Logistics industry average (23.1x).
PE vs Market: UPS is poor value based on its PE Ratio (21.1x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: UPS is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: UPS is overvalued based on its PB Ratio (22.6x) compared to the US Logistics industry average (3x).
Next Steps
Future Growth
How is United Parcel Service forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
8.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UPS's forecast earnings growth (8.6% per year) is above the savings rate (2.7%).
Earnings vs Market: UPS's earnings (8.6% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: UPS's earnings are forecast to grow, but not significantly.
Revenue vs Market: UPS's revenue (4.7% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: UPS's revenue (4.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: UPS's Return on Equity is forecast to be very high in 3 years time (57.9%).
Next Steps
Past Performance
How has United Parcel Service performed over the past 5 years?
6.5%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: UPS's earnings have grown by 6.5% per year over the past 5 years.
Accelerating Growth: UPS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: UPS had negative earnings growth (-8.3%) over the past year, making it difficult to compare to the Logistics industry average (-9.9%).
Return on Equity
High ROE: Whilst UPS's Return on Equity (107.55%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: UPS has a higher Return on Assets than the Logistics industry average last year.
Return on Capital Employed
ROCE Improving: UPS's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is United Parcel Service's financial position?
Financial Position Analysis
Short Term Liabilities: UPS's short term assets ($14.8B) exceeds its short term liabilities ($13.6B)
Long Term Liabilities: UPS's short term assets (14.8B) do not cover its long term liabilities (34.7B)
Debt to Equity History and Analysis
Debt Level: UPS's debt to equity ratio (518.8%) is considered high
Reducing Debt: UPS's debt to equity ratio has increased from 213.1% to 518.8% over the past 5 years.
Debt Coverage: UPS's debt is well covered by operating cash flow (42.3%).
Interest Coverage: UPS earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: UPS has a high level of physical assets or inventory.
Debt Coverage by Assets: UPS's debt is not covered by short term assets (assets are 0.6x debt).
Next Steps
Dividend
What is United Parcel Service's current dividend yield, its reliability and sustainability?
3.31%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: UPS's dividend (3.31%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: UPS's dividend (3.31%) is low compared to the top 25% of dividend payers in the US market (3.68%).
Stable Dividend: UPS's dividends per share have been stable in the past 10 years.
Growing Dividend: UPS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (68.1%), UPS's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: UPS's dividends in 3 years are forecast to be covered by earnings (50.3% payout ratio).
Next Steps
Management
What is the CEO of United Parcel Service's salary, the management and board of directors tenure and is there insider trading?
2.5yrs
Average management tenure
CEO
David Abney (64yo)
5.1yrs
Tenure
US$15,060,876
Compensation
Mr. David P. Abney has been a Member of Board of Directors at Macy’s, Inc since October 25, 2018. Mr. Abney has been the Chief Executive Officer of United Parcel Service, Inc. and United Parcel Service of ...
CEO Compensation Analysis
Compensation vs. Market: David's total compensation ($USD15.06M) is about average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.5yrs
Average Tenure
56yo
Average Age
Experienced Management: UPS's management team is considered experienced (2.5 years average tenure).
Board Age and Tenure
8.2yrs
Average Tenure
63yo
Average Age
Experienced Board: UPS's board of directors are considered experienced (8.2 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Management Team
David Abney (64yo)
Chairman & CEO
- Tenure: 5.1yrs
- Compensation: US$15.06m
Scott Price (56yo)
Senior VP and Chief Strategy & Transformation Officer
- Tenure: 1.6yrs
- Compensation: US$8.48m
Rich Peretz (57yo)
Executive Officer
- Tenure: 0.08yrs
- Compensation: US$4.64m
Kevin Warren (56yo)
Senior VP & Chief Marketing Officer
- Tenure: 1.3yrs
- Compensation: US$4.67m
Kate Gutmann (50yo)
Senior VP and Chief Sales & Solutions Officer
- Tenure: 5.8yrs
Jim Barber (59yo)
Senior VP
- Tenure: 0yrs
- Compensation: US$7.05m
Brian Newman
Chief Financial Officer
- Tenure: 0.08yrs
Norm Brothers (51yo)
Senior VP
- Tenure: 3.8yrs
Juan Perez (52yo)
Senior VP and Chief Information & Engineering Officer
- Tenure: 2.5yrs
Scott Childress
VP & Investor Relations Officer
- Tenure: 3.5yrs
Board Members
Ann Livermore (60yo)
Independent Director
- Tenure: 22.8yrs
- Compensation: US$294.96k
Bill Johnson (70yo)
Lead Independent Director
- Tenure: 3.7yrs
- Compensation: US$319.96k
Rudy Markham (73yo)
Independent Director
- Tenure: 11.9yrs
- Compensation: US$274.96k
Carol Tomé (62yo)
Independent Director
- Tenure: 16.8yrs
- Compensation: US$299.96k
David Abney (64yo)
Chairman & CEO
- Tenure: 5.1yrs
- Compensation: US$15.06m
Mike Burns (67yo)
Independent Director
- Tenure: 14.2yrs
- Compensation: US$274.96k
John Stankey (56yo)
Independent Director
- Tenure: 5.2yrs
- Compensation: US$274.96k
Rod Adkins (60yo)
Independent Director
- Tenure: 6.8yrs
- Compensation: US$294.96k
Sandy Randt (73yo)
Independent Director
- Tenure: 9.2yrs
- Compensation: US$274.96k
Kevin M. Warsh (49yo)
Independent Director
- Tenure: 7.3yrs
- Compensation: US$274.96k
Company Information
United Parcel Service, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: United Parcel Service, Inc.
- Ticker: UPS
- Exchange: NYSE
- Founded: 1907
- Industry: Air Freight and Logistics
- Sector: Transportation
- Market Cap: US$99.629b
- Shares outstanding: 858.13m
- Website: https://www.ups.com
Number of Employees
Location
- United Parcel Service, Inc.
- 55 Glenlake Parkway, N.E.
- Atlanta
- Georgia
- 30328
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| UPS | NYSE (New York Stock Exchange) | Yes | Class B Common Stock | US | USD | Nov 1999 |
| UPAB | DB (Deutsche Boerse AG) | Yes | Class B Common Stock | DE | EUR | Nov 1999 |
| UPS | SNSE (Santiago Stock Exchange) | Yes | Class B Common Stock | CL | USD | Nov 1999 |
| UPS | SWX (SIX Swiss Exchange) | Yes | Class B Common Stock | CH | CHF | Nov 1999 |
| UPS * | BMV (Bolsa Mexicana de Valores) | Yes | Class B Common Stock | MX | MXN | Nov 1999 |
| 0R08 | LSE (London Stock Exchange) | Yes | Class B Common Stock | GB | USD | Nov 1999 |
| UPSI | WBAG (Wiener Boerse AG) | Yes | Class B Common Stock | AT | EUR | Nov 1999 |
| UPSS34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 0.25 COM 'B' USD0.01 | BR | BRL | Aug 2012 |
Biography
United Parcel Service, Inc. provides letter and package delivery, specialized transportation, logistics, and financial services. It operates through three segments: U.S. Domestic Package, International Pac ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/22 23:42 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.