NYSE:UPS

Stock Analysis Report

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

UPSIndustryMarket
7 Day-0.3%1.2%0.07%
30 Day-3.8%-0.4%-0.3%
90 Day1.5%-0.9%-1.6%
1 Year5.2%1.6%-2.7%-4.9%11.3%8.9%
3 Year18.5%7.7%16.7%8.9%46.3%36.8%
5 Year31.6%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

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

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years3.5%

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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UPSNYSE (New York Stock Exchange)YesClass B Common StockUSUSDNov 1999
UPABDB (Deutsche Boerse AG)YesClass B Common StockDEEURNov 1999
UPSSNSE (Santiago Stock Exchange)YesClass B Common StockCLUSDNov 1999
UPSSWX (SIX Swiss Exchange)YesClass B Common StockCHCHFNov 1999
UPS *BMV (Bolsa Mexicana de Valores)YesClass B Common StockMXMXNNov 1999
0R08LSE (London Stock Exchange)YesClass B Common StockGBUSDNov 1999
UPSIWBAG (Wiener Boerse AG)YesClass B Common StockATEURNov 1999
UPSS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 0.25 COM 'B' USD0.01BRBRLAug 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:42
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.