United Parcel Service
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United Parcel Service, Inc. provides letter and package delivery, specialized transportation, logistics, and financial services. The last earnings update was 60 days ago. More info.
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UPS Share Price and Events
7 Day Returns
1 Year Returns
UPS Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| United Parcel Service (UPS) | -0% | 5.8% | 10.7% | 4.1% | 8.1% | 15.6% |
| US Logistics | 0.4% | 9.7% | 11.4% | -4.3% | 17.5% | 34.9% |
| US Market | -0.8% | 2.7% | 7.5% | 7% | 37.9% | 47% |
1 Year Return vs Industry and Market
- UPS outperformed the Logistics industry which returned -4.3% over the past year.
- UPS underperformed the Market in United States of America which returned 7% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
United Parcel Service
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for United Parcel Service.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 21 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.6% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Logistics Unlevered Beta | Simply Wall St/ S&P Global | 1.04 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.038 (1 + (1- 21%) (23.31%)) |
1.154 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.15 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.154 * 5.96%) |
9.61% |
Discounted Cash Flow Calculation for NYSE:UPS using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for United Parcel Service is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.61%) |
|
|---|---|---|---|
| 2019 | 4,076.89 | Analyst x9 | 3,719.57 |
| 2020 | 4,477.33 | Analyst x9 | 3,726.90 |
| 2021 | 5,796.67 | Analyst x3 | 4,402.21 |
| 2022 | 6,315.00 | Analyst x1 | 4,375.52 |
| 2023 | 7,024.00 | Analyst x1 | 4,440.22 |
| 2024 | 7,604.55 | Est @ 8.27% | 4,385.89 |
| 2025 | 8,106.81 | Est @ 6.6% | 4,265.78 |
| 2026 | 8,548.01 | Est @ 5.44% | 4,103.71 |
| 2027 | 8,943.66 | Est @ 4.63% | 3,917.34 |
| 2028 | 9,306.68 | Est @ 4.06% | 3,719.08 |
| Present value of next 10 years cash flows | $41,056.21 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $9,306.68 × (1 + 2.73%) ÷ (9.61% – 2.73%) |
$139,036.82 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $139,036.82 ÷ (1 + 9.61%)10 |
$55,560.98 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $41,056.21 + $55,560.98 |
$96,617.19 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $96,617.19 / 860.18 |
$112.32 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $112.32 |
| Current discount | Discount to share price of
$113.62
= -1 x ($113.62 - $112.32) / $112.32 |
-1.2% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of United Parcel Service is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for United Parcel Service's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
United Parcel Service's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $5.53 |
| NYSE:UPS Share Price ** | NYSE (2019-04-22) in USD | $113.62 |
| United States of America Logistics Industry PE Ratio | Median Figure of 14 Publicly-Listed Logistics Companies | 20.73x |
| United States of America Market PE Ratio | Median Figure of 3,080 Publicly-Listed Companies | 18.21x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of United Parcel Service.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:UPS Share Price ÷ EPS (both in USD) = 113.62 ÷ 5.53 |
20.54x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- United Parcel Service is good value based on earnings compared to the US Logistics industry average.
- United Parcel Service is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
United Parcel Service's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 20.54x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts |
12%per year |
| United States of America Logistics Industry PEG Ratio | Median Figure of 12 Publicly-Listed Logistics Companies | 1.68x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.56x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 20.54x ÷ 12% |
1.72x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- United Parcel Service is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
United Parcel Service's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $3.52 |
| NYSE:UPS Share Price * | NYSE (2019-04-22) in USD | $113.62 |
| United States of America Logistics Industry PB Ratio | Median Figure of 16 Publicly-Listed Logistics Companies | 2.95x |
| United States of America Market PB Ratio | Median Figure of 5,186 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:UPS Share Price ÷ Book Value per Share (both in USD) = 113.62 ÷ 3.52 |
32.31x |
* Primary Listing of United Parcel Service.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- United Parcel Service is overvalued based on assets compared to the US Logistics industry average.
Value checks
We assess United Parcel Service's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Logistics industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Logistics industry average (and greater than 0)? (1 check) United Parcel Service has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- United Parcel Service's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- United Parcel Service's earnings growth is positive but not above the United States of America market average.
- United Parcel Service's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:UPS Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts | 12% |
| NYSE:UPS Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts | 5% |
| United States of America Logistics Industry Earnings Growth Rate | Market Cap Weighted Average | 11.6% |
| United States of America Logistics Industry Revenue Growth Rate | Market Cap Weighted Average | 6.2% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.5% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 21 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 92,842 | 14,212 | 8,951 | 2 |
| 2022-12-31 | 88,032 | 13,259 | 8,303 | 3 |
| 2021-12-31 | 83,764 | 12,402 | 7,730 | 7 |
| 2020-12-31 | 79,920 | 10,987 | 7,121 | 21 |
| 2019-12-31 | 75,756 | 10,693 | 6,525 | 21 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 71,861 | 12,711 | 4,791 |
| 2018-09-30 | 70,275 | 6,483 | 5,439 |
| 2018-06-30 | 69,004 | 6,058 | 5,190 |
| 2018-03-31 | 67,475 | 5,307 | 5,089 |
| 2017-12-31 | 66,585 | 1,479 | 4,905 |
| 2017-09-30 | 64,541 | 5,528 | 3,570 |
| 2017-06-30 | 63,296 | 4,401 | 3,581 |
| 2017-03-31 | 61,998 | 4,042 | 3,466 |
| 2016-12-31 | 61,610 | 6,473 | 3,422 |
| 2016-09-30 | 60,029 | 6,378 | 5,001 |
| 2016-06-30 | 59,338 | 7,884 | 4,988 |
| 2016-03-31 | 58,804 | 7,349 | 4,949 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 21 Analyst Estimates (S&P Global) | See Below |
All data from United Parcel Service Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 10.69 | 10.69 | 10.69 | 1.00 |
| 2022-12-31 | 9.92 | 9.92 | 9.92 | 1.00 |
| 2021-12-31 | 9.05 | 9.40 | 8.88 | 5.00 |
| 2020-12-31 | 8.24 | 8.65 | 8.00 | 16.00 |
| 2019-12-31 | 7.51 | 7.60 | 7.29 | 16.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 5.53 |
| 2018-09-30 | 6.28 |
| 2018-06-30 | 5.98 |
| 2018-03-31 | 5.86 |
| 2017-12-31 | 5.63 |
| 2017-09-30 | 4.09 |
| 2017-06-30 | 4.09 |
| 2017-03-31 | 3.94 |
| 2016-12-31 | 3.88 |
| 2016-09-30 | 5.63 |
| 2016-06-30 | 5.59 |
| 2016-03-31 | 5.52 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- United Parcel Service is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
Future performance checks
We assess United Parcel Service's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
United Parcel Service has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has United Parcel Service performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- United Parcel Service's year on year earnings growth rate has been positive over the past 5 years.
- United Parcel Service's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- United Parcel Service's 1-year earnings growth is negative, it can't be compared to the US Logistics industry average.
Earnings and Revenue History
All data from United Parcel Service Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 71,861.00 | 4,791.00 | ||
| 2018-09-30 | 70,275.00 | 5,439.00 | ||
| 2018-06-30 | 69,004.00 | 5,190.00 | -210.00 | |
| 2018-03-31 | 67,475.00 | 5,089.00 | ||
| 2017-12-31 | 66,585.00 | 4,905.00 | ||
| 2017-09-30 | 64,541.00 | 3,570.00 | ||
| 2017-06-30 | 63,296.00 | 3,581.00 | -359.00 | |
| 2017-03-31 | 61,998.00 | 3,466.00 | ||
| 2016-12-31 | 61,610.00 | 3,422.00 | ||
| 2016-09-30 | 60,029.00 | 5,001.00 | ||
| 2016-06-30 | 59,338.00 | 4,988.00 | ||
| 2016-03-31 | 58,804.00 | 4,949.00 | ||
| 2015-12-31 | 58,363.00 | 4,844.00 | ||
| 2015-09-30 | 58,204.00 | 3,966.00 | ||
| 2015-06-30 | 58,257.00 | 3,923.00 | ||
| 2015-03-31 | 58,430.00 | 3,147.00 | ||
| 2014-12-31 | 58,232.00 | 3,032.00 | ||
| 2014-09-30 | 57,313.00 | 3,746.00 | ||
| 2014-06-30 | 56,544.00 | 3,629.00 | ||
| 2014-03-31 | 55,783.00 | 4,246.00 | ||
| 2013-12-31 | 55,438.00 | 4,372.00 | ||
| 2013-09-30 | 55,033.00 | 1,457.00 | ||
| 2013-06-30 | 54,583.00 | 829.00 | ||
| 2013-03-31 | 54,425.00 | 874.00 | ||
| 2012-12-31 | 54,127.00 | 807.00 | ||
| 2012-09-30 | 53,722.00 | 3,280.00 | ||
| 2012-06-30 | 53,817.00 | 3,883.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst United Parcel Service made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
- United Parcel Service used its assets more efficiently than the US Logistics industry average last year based on Return on Assets.
- United Parcel Service's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess United Parcel Service's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Logistics industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
United Parcel Service has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is United Parcel Service's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up United Parcel Service's finances.
The net worth of a company is the difference between its assets and liabilities.
- United Parcel Service is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- United Parcel Service's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from United Parcel Service Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 3,037.00 | 22,777.00 | 5,036.00 |
| 2018-09-30 | 3,126.00 | 23,366.00 | 4,845.00 |
| 2018-06-30 | 2,356.00 | 22,771.00 | 4,940.00 |
| 2018-03-31 | 1,375.00 | 23,143.00 | 4,209.00 |
| 2017-12-31 | 1,024.00 | 24,317.00 | 4,070.00 |
| 2017-09-30 | 1,539.00 | 18,933.00 | 4,465.00 |
| 2017-06-30 | 1,274.00 | 18,099.00 | 4,611.00 |
| 2017-03-31 | 560.00 | 17,269.00 | 3,729.00 |
| 2016-12-31 | 429.00 | 16,104.00 | 4,567.00 |
| 2016-09-30 | 2,767.00 | 15,372.00 | 5,358.00 |
| 2016-06-30 | 2,650.00 | 14,419.00 | 5,672.00 |
| 2016-03-31 | 2,480.00 | 15,485.00 | 6,267.00 |
| 2015-12-31 | 2,491.00 | 14,366.00 | 4,726.00 |
| 2015-09-30 | 1,948.00 | 14,639.00 | 5,689.00 |
| 2015-06-30 | 1,968.00 | 13,194.00 | 6,222.00 |
| 2015-03-31 | 1,847.00 | 13,138.00 | 6,417.00 |
| 2014-12-31 | 2,158.00 | 10,822.00 | 3,283.00 |
| 2014-09-30 | 5,644.00 | 12,312.00 | 5,571.00 |
| 2014-06-30 | 5,585.00 | 11,899.00 | 4,599.00 |
| 2014-03-31 | 6,262.00 | 12,161.00 | 7,035.00 |
| 2013-12-31 | 6,488.00 | 10,980.00 | 5,252.00 |
| 2013-09-30 | 3,655.00 | 12,680.00 | 6,664.00 |
| 2013-06-30 | 3,630.00 | 12,007.00 | 6,213.00 |
| 2013-03-31 | 4,043.00 | 12,718.00 | 7,332.00 |
| 2012-12-31 | 4,733.00 | 12,925.00 | 7,925.00 |
| 2012-09-30 | 7,614.00 | 15,068.00 | 9,026.00 |
| 2012-06-30 | 7,725.00 | 13,129.00 | 7,322.00 |
- United Parcel Service's level of debt (750%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (169.5% vs 750% today).
- Debt is well covered by operating cash flow (55.8%, greater than 20% of total debt).
- United Parcel Service earns more interest than it pays, coverage of interest payments is not a concern.
Financial health checks
We assess United Parcel Service's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) United Parcel Service has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is United Parcel Service's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
United Parcel Service
shares you are expected to receive
$68
in your first year as a dividend.
Dividend Amount
- United Parcel Service's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
- United Parcel Service's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 21 Analyst Estimates (S&P Global) | See Below |
| United States of America Logistics Industry Average Dividend Yield | Market Cap Weighted Average of 6 Stocks | 2.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2008 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 5.28 | 3.00 |
| 2022-12-31 | 4.86 | 3.00 |
| 2021-12-31 | 4.43 | 9.00 |
| 2020-12-31 | 4.05 | 18.00 |
| 2019-12-31 | 3.79 | 18.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-15 | 3.840 | 3.455 |
| 2018-11-08 | 3.640 | 3.520 |
| 2018-08-09 | 3.640 | 3.110 |
| 2018-05-10 | 3.640 | 3.187 |
| 2018-02-08 | 3.640 | 3.377 |
| 2017-11-02 | 3.320 | 2.757 |
| 2017-08-03 | 3.320 | 2.853 |
| 2017-05-04 | 3.320 | 3.057 |
| 2017-02-08 | 3.320 | 3.118 |
| 2016-11-03 | 3.120 | 2.732 |
| 2016-08-05 | 3.120 | 2.869 |
| 2016-05-05 | 3.120 | 2.953 |
| 2016-02-10 | 3.120 | 3.051 |
| 2015-11-05 | 2.920 | 2.993 |
| 2015-08-06 | 2.920 | 2.898 |
| 2015-05-07 | 2.920 | 2.936 |
| 2015-02-11 | 2.920 | 2.942 |
| 2014-11-06 | 2.680 | 2.491 |
| 2014-08-07 | 2.680 | 2.718 |
| 2014-05-08 | 2.680 | 2.630 |
| 2014-02-13 | 2.680 | 2.754 |
| 2013-11-07 | 2.480 | 2.476 |
| 2013-08-08 | 2.480 | 2.741 |
| 2013-05-02 | 2.480 | 2.848 |
| 2013-02-14 | 2.480 | 2.952 |
| 2012-11-08 | 2.280 | 3.000 |
| 2012-08-09 | 2.280 | 3.097 |
| 2012-05-03 | 2.280 | 2.976 |
| 2012-02-09 | 2.280 | 2.907 |
| 2011-11-03 | 2.080 | 2.867 |
| 2011-08-11 | 2.080 | 3.148 |
| 2011-05-05 | 2.080 | 2.921 |
| 2011-02-03 | 2.080 | 2.827 |
| 2010-11-04 | 1.880 | 2.631 |
| 2010-08-05 | 1.880 | 2.807 |
| 2010-05-06 | 1.880 | 3.024 |
| 2010-02-04 | 1.880 | 3.003 |
| 2009-11-05 | 1.800 | 3.084 |
| 2009-08-13 | 1.800 | 3.244 |
| 2009-05-07 | 1.800 | 3.506 |
| 2009-04-23 | 1.800 | 3.385 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
United Parcel Service's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.5x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2x coverage).
Income/ dividend checks
We assess United Parcel Service's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can United Parcel Service afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) United Parcel Service has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $15,060,876 |
| AGE | 63 |
| TENURE AS CEO | 4.6 years |
CEO Bio
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 America, Inc. since September 1, 2014. Mr. Abney serves as the Chief Executive Officer of UPS Supply Chain Solutions, Inc. He served as the Chief Operating Officer of United Parcel Service of America, Inc. and United Parcel Service, Inc. from January 8, 2007 to September 1, 2014. Mr. Abney served as the Chief Operating Officer of UPS International at UPS Airlines since January 8, 2007 until 2014. He served as Senior Vice President of United Parcel Service, Inc. He served as Senior Vice President of Global Transportation Services at United Parcel Service, Inc. He served as the President of Airlines at United Parcel Service, Inc. from 2007 to 2008. He served as the President of UPS International, Inc. from 2003 to January 8, 2007. He served as the President of International Operations at UPS Supply Chain Solutions Inc. He served as the President of UPS International Inc., from 2003 to January 8, 2007 and as UPS/Fritz Companies Integration Manager from 2001 to 2002. His international experience includes leading the logistics and freight divisions in Canada and Latin America as well as heading global freight forwarding and customs brokerage. He began his career with UPS Airlines in 1974, served as a part-time package loader and in various positions of increasing responsibility. He served as the President of SonicAir. He served as Senior Vice President of United Parcel Service, Inc., since 2003. He has worked in U.S. package operations and directed freight and logistics operations in the U.S., Canada and Latin America at UPS Airlines. He has been the Chairman of United Parcel Service, Inc. since February 10, 2016. He has been the Chairman of United Parcel Service of America, Inc. since June 2016. He has been a Non-Independent Director of United Parcel Service, Inc. since September 1, 2014. Mr. Abney serves as a Director of Engage Ventures, LLC. He served as an Independent Director of Johnson Controls International plc from September 6, 2016 to March 7, 2018. Mr. Abney serves as a Director of Allied Waste Inc. He serves on the Board of Directors of the Air Couriers Conference of America. He serves as a Board Member of the Southern Center for International Studies, the Coalition of Service Industries and Cargo Network Services, a subsidiary of the International Air Transport Association. He serves as a Trustee of the UPS Foundation, a Trustee of the Annie E. Casey Foundation and is a member of the World Affairs Council. He served as an Independent Director of Johnson Controls Inc., since September 2009 until September 6, 2016. He served as an Independent Director of Allied Waste Industries, Inc. since April 7, 2008. Abney serves on the board of Catalyst, an organization working to accelerate and advance women, including women of color, into senior leadership and board positions, and was elected as the 2019 Chairman of the Metro Atlanta Chamber of Commerce. He was honored with the Professionalism in Services/Support Management Award by the International Association of Services Management for demonstrating exemplary managerial characteristics. Mr. Abney holds a Bachelor's degree in Business Administration from Delta State University.
CEO Compensation
- David's compensation has been consistent with company performance over the past year.
- David's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the United Parcel Service management team in years:
- The tenure for the United Parcel Service management team is about average.
Management Team
David Abney
Chairman & CEO
$15M
63
4.6 yrs
Jim Barber
Senior VP
$7M
58
Rich Peretz
Senior VP
$5M
56
3.8 yrs
Kevin Warren
Senior VP & Chief Marketing Officer
$5M
55
0.8 yrs
Scott Price
Senior VP & Chief Strategy Transformation Officer
$8M
55
1.1 yrs
Juan Perez
Senior VP and Chief Information & Engineering Officer
51
2 yrs
Scott Childress
VP & Investor Relations Officer
3 yrs
Norm Brothers
Senior VP
50
3.3 yrs
Kate Gutmann
Senior VP and Chief Sales & Solutions Officer
49
5.3 yrs
Teri McClure
Senior VP of Labor Relations & Chief Human Resources Officer
54
3.3 yrs
Board of Directors Tenure
Average tenure and age of the United Parcel Service board of directors in years:
- The tenure for the United Parcel Service board of directors is about average.
Board of Directors
David Abney
Chairman & CEO
$15M
63
3.2 yrs
Ann Livermore
Independent Director
$295K
59
22.3 yrs
Carol Tomé
Independent Director
$300K
61
16.3 yrs
Bill Johnson
Lead Independent Director
$320K
69
3.2 yrs
Rod Adkins
Independent Director
$295K
59
6.3 yrs
Mike Burns
Independent Director
$275K
66
13.7 yrs
Rudy Markham
Independent Director
$275K
72
11.4 yrs
Sandy Randt
Independent Director
$275K
72
8.7 yrs
Candace Kendle
Independent Director
$275K
71
7.7 yrs
Kevin Warsh
Independent Director
$275K
48
6.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 24. Aug 18 | Sell | George Willis | Individual | 23. Aug 18 | 23. Aug 18 | -4,312 | $121.34 | $-523,218 | ||
Management checks
We assess United Parcel Service's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) United Parcel Service has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Is United Parcel Service, Inc.'s (NYSE:UPS) CEO Overpaid Relative To Its Peers?
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does David Abney's Compensation Compare With Similar Sized Companies. … has a market capitalization of US$98b, and pays its CEO total annual compensation worth US$15m.
Simply Wall St - – Full articleWhat Do Analysts Think About The Future Of United Parcel Service, Inc.'s (NYSE:UPS)?
United Parcel Service, Inc.'s (NYSE:UPS) most recent earnings announcement in December 2018a
Simply Wall St - – Full articleUpdate: United Parcel Service (NYSE:UPS) Stock Gained 11% In The Last Five Years
(NYSE:UPS) share price is up 11% in the last five years, that's less than the market return. … During five years of share price growth, United Parcel Service achieved compound earnings per share (EPS) growth of 3.5% per year. … This EPS growth is higher than the 2.2% average annual increase in the share price.
Simply Wall St - – Full articleWhat Type Of Shareholder Owns United Parcel Service, Inc.'s (NYSE:UPS)?
A look at the shareholders of United Parcel Service, Inc. … United Parcel Service is a pretty big company. … View our latest analysis for United Parcel Service
Simply Wall St - – Full articleDo You Know What United Parcel Service, Inc.'s (NYSE:UPS) P/E Ratio Means?
We'll look at United Parcel Service, Inc.'s (NYSE:UPS) P/E ratio and reflect on what it tells us about the company's share price. … United Parcel Service has a P/E ratio of 19.92, based on the last twelve months. … How Do I Calculate United Parcel Service's Price To Earnings Ratio
Simply Wall St - – Full articleDoes The Hype Around United Parcel Service, Inc.'s (NYSE:UPS) Growth Justify Its February Share Price?
Check out our latest analysis for United Parcel Service? … What can we expect from United Parcel Service in the future. … According to the analysts covering the company, the following few years should bring about good growth prospects for United Parcel Service
Simply Wall St - – Full articleShould United Parcel Service, Inc. (NYSE:UPS) Be Part Of Your Dividend Portfolio?
Over the past 10 years United Parcel Service, Inc. … Let's dig deeper into whether United Parcel Service should have a place in your portfolio. … See our latest analysis for United Parcel Service
Simply Wall St - – Full articleIs Now An Opportune Moment To Examine United Parcel Service, Inc. (NYSE:UPS)?
Today we're going to take a look at the well-established United Parcel Service, Inc. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s examine United Parcel Service’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Simply Wall St - – Full articleHow Do Analysts See United Parcel Service, Inc. (NYSE:UPS) Performing Over The Next Year?
In September 2018, United Parcel Service, Inc. … the consensus outlook from analysts appear fairly confident, … the past 5-year average growth rate of 8.4%
Simply Wall St - – Full articleDid United Parcel Service, Inc. (NYSE:UPS) Insiders Sell Shares?
(NYSE:UPS), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … The Last 12 Months Of Insider Transactions At United Parcel Service.
Simply Wall St - – Full articleCompany Info
Description
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 and 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 220 countries and territories; and less-than-truckload and truckload services to customers in North America. This segment also offers shipping, visibility, and billing technologies; and insurance, financing, and payment services. The company operates a fleet of approximately 123,000 package cars, vans, tractors, and motorcycles; and owns 47,000 containers that are used to transport cargo in its aircraft. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.
Details
| Name: | United Parcel Service, Inc. |
| UPS | |
| Exchange: | NYSE |
| Founded: | 1907 |
| $97,733,402,090 | |
| 860,177,804 | |
| Website: | http://www.ups.com |
| Address: |
United Parcel Service, Inc. 55 Glenlake Parkway, N.E., Atlanta, Georgia, 30328, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | UPS | Class B Common Stock | New York Stock Exchange | US | USD | 10. Nov 1999 | |
| DB | UPAB | Class B Common Stock | Deutsche Boerse AG | DE | EUR | 10. Nov 1999 | |
| LSE | 0R08 | Class B Common Stock | London Stock Exchange | GB | USD | 10. Nov 1999 | |
| SWX | UPS | Class B Common Stock | SIX Swiss Exchange | CH | CHF | 10. Nov 1999 | |
| WBAG | UPSI | Class B Common Stock | Wiener Boerse AG | AT | EUR | 10. Nov 1999 | |
| SNSE | UPS | Class B Common Stock | Santiago Stock Exchange | CL | USD | 10. Nov 1999 | |
| BMV | UPS * | Class B Common Stock | Bolsa Mexicana de Valores | MX | MXN | 10. Nov 1999 | |
| BOVESPA | UPSS34 | BDR EACH REPR 0.25 COM 'B' USD0.01 | Bolsa de Valores de Sao Paulo | BR | BRL | 24. Aug 2012 |
Number of employees
Current staff
Industry
| Air Freight and Logistics | |
| Transportation |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/22 23:47 |
| End of day share price update: | 2019/04/22 00:00 |
| Last estimates confirmation: | 2019/04/17 |
| Last earnings filing: | 2019/02/21 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
