United Parcel Service
Market Cap
US$189.3b
Last Updated
2021/05/10 23:41 UTC
Data Sources
Company Financials +
Executive Summary
United Parcel Service, Inc. provides letter and package delivery, transportation, logistics, and financial services. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 7% per year for the next 3 years
Snowflake Analysis
Established dividend payer with adequate 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
Stable Share Price: UPS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: UPS's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
1.9%
UPS
3.6%
US Logistics
-1.2%
US Market
1 Year Return
130.1%
UPS
101.9%
US Logistics
48.3%
US Market
Return vs Industry: UPS exceeded the US Logistics industry which returned 101.9% over the past year.
Return vs Market: UPS exceeded the US Market which returned 48.3% over the past year.
Shareholder returns
| UPS | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 3.6% | -1.2% |
| 30 Day | 22.8% | 16.3% | 0.2% |
| 90 Day | 29.5% | 21.3% | 1.6% |
| 1 Year | 137.0%130.1% | 105.8%101.9% | 50.8%48.3% |
| 3 Year | 104.7%85.8% | 66.5%56.5% | 62.0%51.9% |
| 5 Year | 147.0%112.6% | 137.7%112.7% | 126.9%101.7% |
Long-Term 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
1 day ago | Simply Wall St
Is United Parcel Service, Inc. (NYSE:UPS) Potentially Undervalued?3 months ago | Simply Wall St
At US$157, Is It Time To Put United Parcel Service, Inc. (NYSE:UPS) On Your Watch List?6 months ago | Simply Wall St
Is Now The Time To Look At Buying United Parcel Service, Inc. (NYSE:UPS)?Valuation
Is United Parcel Service undervalued compared to its fair value and its price relative to the market?
36.33x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: UPS ($216.13) is trading above our estimate of fair value ($132)
Significantly Below Fair Value: UPS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: UPS is poor value based on its PE Ratio (36.3x) compared to the US Logistics industry average (30.9x).
PE vs Market: UPS is poor value based on its PE Ratio (36.3x) compared to the US market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: UPS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: UPS is overvalued based on its PB Ratio (284.6x) compared to the US Logistics industry average (3.5x).
Future Growth
How is United Parcel Service forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
-7.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UPS's earnings are forecast to decline over the next 3 years (-7% per year).
Earnings vs Market: UPS's earnings are forecast to decline over the next 3 years (-7% per year).
High Growth Earnings: UPS's earnings are forecast to decline over the next 3 years.
Revenue vs Market: UPS's revenue (4.1% per year) is forecast to grow slower than the US market (9% per year).
High Growth Revenue: UPS's revenue (4.1% 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 (50.7%).
Past Performance
How has United Parcel Service performed over the past 5 years?
-1.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UPS has a large one-off gain of $4.5B impacting its March 31 2021 financial results.
Growing Profit Margin: UPS's current net profit margins (5.8%) are higher than last year (5.7%).
Past Earnings Growth Analysis
Earnings Trend: UPS's earnings have declined by 1.7% per year over the past 5 years.
Accelerating Growth: UPS's earnings growth over the past year (20.4%) exceeds its 5-year average (-1.7% per year).
Earnings vs Industry: UPS earnings growth over the past year (20.4%) exceeded the Logistics industry -11.9%.
Return on Equity
High ROE: Whilst UPS's Return on Equity (72.22%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is United Parcel Service's financial position?
Financial Position Analysis
Short Term Liabilities: UPS's short term assets ($21.0B) exceed its short term liabilities ($16.3B).
Long Term Liabilities: UPS's short term assets ($21.0B) do not cover its long term liabilities ($39.8B).
Debt to Equity History and Analysis
Debt Level: UPS's debt to equity ratio (339.8%) is considered high.
Reducing Debt: UPS's debt to equity ratio has reduced from 579.8% to 339.8% over the past 5 years.
Debt Coverage: UPS's debt is well covered by operating cash flow (51.1%).
Interest Coverage: UPS earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is United Parcel Service current dividend yield, its reliability and sustainability?
1.89%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: UPS's dividend (1.89%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: UPS's dividend (1.89%) is low compared to the top 25% of dividend payers in the US market (3.41%).
Stability and Growth of Payments
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 well covered by earnings (39.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Carol Tomé (63 yo)
0.92
Tenure
US$4,354,787
Compensation
Ms. Carol B. Tomé serves as the Chief Financial Officer and Executive Vice President of Corporate Services at Home Depot U.S.A., Inc. Ms. Tomé has been Chief Executive Officer and Director of United Parcel...
CEO Compensation Analysis
Compensation vs Market: Carol's total compensation ($USD4.35M) is below average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Carol's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: UPS's management team is considered experienced (3 years average tenure).
Board Members
Experienced Board: UPS's board of directors are considered experienced (8.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: UPS insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$189.341b
- Shares outstanding: 870.53m
- Website: https://www.ups.com
Number of Employees
Location
- United Parcel Service, Inc.
- 55 Glenlake Parkway, N.E.
- Atlanta
- Georgia
- 30328
- United States
Listings
Biography
United Parcel Service, Inc. provides letter and package delivery, transportation, logistics, and financial services. It operates through three segments: U.S. Domestic Package, International Package, and Su...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/10 23:41 |
| End of Day Share Price | 2021/05/10 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.