United Parcel Service
Market Cap
US$84.0b
Last Updated
2020/03/31 01:24 UTC
Data Sources
Company Financials +
Executive Summary
United Parcel Service, Inc. provides letter and package delivery, specialized transportation, logistics, and financial services.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with moderate growth potential.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.7%
UPS
3.5%
US Logistics
7.2%
US Market
1 Year Return
-13.9%
UPS
-15.3%
US Logistics
-10.4%
US Market
Return vs Industry: UPS exceeded the US Logistics industry which returned -16.9% over the past year.
Return vs Market: UPS underperformed the US Market which returned -12.7% over the past year.
Shareholder returns
| UPS | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.7% | 3.5% | 7.2% |
| 30 Day | 8.1% | -0.03% | -12.6% |
| 90 Day | -16.4% | -14.9% | -19.4% |
| 1 Year | -10.8%-13.9% | -13.2%-15.3% | -8.5%-10.4% |
| 3 Year | 1.3%-8.2% | -2.5%-8.9% | 15.8%8.3% |
| 5 Year | 18.5%1.2% | 6.1%-5.0% | 35.8%21.0% |
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
2 weeks ago | Simply Wall St
Is It Time To Consider Buying United Parcel Service, Inc. (NYSE:UPS)?3 weeks ago | Simply Wall St
Is United Parcel Service (NYSE:UPS) Using Too Much Debt?1 month ago | Simply Wall St
United Parcel Service, Inc. (NYSE:UPS) Goes Ex-Dividend In 4 DaysValuation
Is United Parcel Service undervalued compared to its fair value and its price relative to the market?
19.04x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: UPS ($97.52) is trading below our estimate of fair value ($126.34)
Significantly Below Fair Value: UPS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: UPS is poor value based on its PE Ratio (19x) compared to the Logistics industry average (16.9x).
PE vs Market: UPS is poor value based on its PE Ratio (19x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: UPS is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: UPS is overvalued based on its PB Ratio (25.6x) compared to the US Logistics industry average (2x).
Next Steps
Future Growth
How is United Parcel Service forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
15.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UPS's forecast earnings growth (15% per year) is above the savings rate (1.7%).
Earnings vs Market: UPS's earnings (15% per year) are forecast to grow faster than the US market (12.3% per year).
High Growth Earnings: UPS's earnings are forecast to grow, but not significantly.
Revenue vs Market: UPS's revenue (3.8% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: UPS's revenue (3.8% 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 (68.9%).
Next Steps
Past Performance
How has United Parcel Service performed over the past 5 years?
5.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UPS has high quality earnings.
Growing Profit Margin: UPS's current net profit margins (6%) are lower than last year (6.7%).
Past Earnings Growth Analysis
Earnings Trend: UPS's earnings have grown by 5.7% 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 (-7.3%) over the past year, making it difficult to compare to the Logistics industry average (-5.5%).
Return on Equity
High ROE: Whilst UPS's Return on Equity (135.24%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is United Parcel Service's financial position?
Financial Position Analysis
Short Term Liabilities: UPS's short term assets ($17.1B) exceed its short term liabilities ($15.4B).
Long Term Liabilities: UPS's short term assets ($17.1B) do not cover its long term liabilities ($39.2B).
Debt to Equity History and Analysis
Debt Level: UPS's debt to equity ratio (754%) is considered high.
Reducing Debt: UPS's debt to equity ratio has increased from 503.5% to 754% over the past 5 years.
Debt Coverage: UPS's debt is well covered by operating cash flow (34.9%).
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 0.7x debt).
Next Steps
Dividend
What is United Parcel Service's current dividend yield, its reliability and sustainability?
4.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: UPS's dividend (4.14%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: UPS's dividend (4.14%) is low compared to the top 25% of dividend payers in the US market (5.49%).
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 (74.7%), 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 (49.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
David Abney (64yo)
5.42s
Tenure
US$18,030,925
Compensation
Mr. David P. Abney has been a Member of Board of Directors at Macy’s, Inc since October 25, 2018. Mr. Abney has been the Chief Executive Officer of United Parcel Service, Inc. and United Parcel Service of ...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD18.03M) is above average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Consultant | 5.42yrs | US$18.03m | 0.036% $30.5m | |
| Senior VP | 0.42yr | US$6.26m | 0.0031% $2.6m | |
| Senior VP & Chief Marketing Officer | 1.67yrs | US$4.58m | 0.0018% $1.5m | |
| Senior VP and Chief Strategy & Transformation Officer | 2yrs | US$7.13m | 0.0022% $1.9m | |
| Senior VP and Chief Information & Engineering Officer | 2.83yrs | no data | 0.0060% $5.0m | |
| VP & Investor Relations Officer | 3.83yrs | no data | no data | |
| Senior VP | 4.17yrs | no data | 0.0041% $3.4m | |
| Chief Sales & Solutions Officer | 6.17yrs | no data | 0.0065% $5.5m | |
| Senior VP & Chief Human Resources Officer | 0.67yr | no data | 0.00060% $503.9k | |
| Head of German Operations | no data | no data | no data |
2.8yrs
Average Tenure
52yo
Average Age
Experienced Management: UPS's management team is considered experienced (2.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Consultant | 5.42yrs | US$18.03m | 0.036% $30.5m | |
| Independent Director | 23.17yrs | US$302.40k | 0.0032% $2.7m | |
| Non-Executive Chairman | 4yrs | US$332.40k | 0.000020% $16.8k | |
| Independent Director | 12.25yrs | US$282.40k | 0.00018% $151.2k | |
| CEO & Director | 17.17yrs | US$307.40k | 0.00099% $831.5k | |
| Independent Director | 14.58yrs | US$282.40k | 0.00056% $470.3k | |
| Independent Director | 5.58yrs | US$282.40k | no data | |
| Independent Director | 7.17yrs | US$302.40k | no data | |
| Independent Director | 9.58yrs | US$282.40k | no data | |
| Independent Director | 7.67yrs | US$282.40k | no data |
8.6yrs
Average Tenure
63yo
Average Age
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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
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$83.990b
- Shares outstanding: 858.45m
- 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 |
| UPAB | XTRA (XETRA Trading Platform) | 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 |
| UPAB | ETLX (Eurotlx) | Yes | Class B Common Stock | IT | 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 Package, and Supply Chain & Freight. The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day- and time-definite international shipping services in Europe, the Asia Pacific, Canada, Latin America, the Indian sub-continent, the Middle East, and Africa. This segment offers guaranteed time-definite express options, including Express Plus, Express, and Express Saver. The Supply Chain & Freight segment provides international air and ocean freight forwarding, customs brokerage, distribution and post-sales, and mail and consulting services in approximately 200 countries and territories; less-than-truckload and truckload services to customers in North America; multimodal transportation; and value-added fulfillment and transportation management services, as well as product classification, trade management, and duty drawback services. The company also offers insurance, financing, and payment services. It operates a fleet of approximately 125,000 package cars, vans, tractors, and motorcycles; and owns 52,000 containers that are used to transport cargo in its aircraft. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 01:24 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.