United Parcel Service
Market Cap
US$137.5b
Last Updated
2020/08/14 13:11 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 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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
1.5%
UPS
6.8%
US Logistics
0.5%
US Market
1 Year Return
38.2%
UPS
37.6%
US Logistics
18.7%
US Market
Return vs Industry: UPS matched the US Logistics industry which returned 37.6% over the past year.
Return vs Market: UPS exceeded the US Market which returned 18.7% over the past year.
Shareholder returns
| UPS | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | 6.8% | 0.5% |
| 30 Day | 33.6% | 24.8% | 4.9% |
| 90 Day | 75.0% | 56.5% | 19.8% |
| 1 Year | 42.1%38.2% | 41.2%37.6% | 21.2%18.7% |
| 3 Year | 54.4%40.5% | 45.5%36.1% | 46.2%36.8% |
| 5 Year | 87.4%60.7% | 69.3%51.3% | 85.3%65.1% |
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 days ago | Simply Wall St
The Returns At United Parcel Service (NYSE:UPS) Provide Us With Signs Of What's To Come2 days ago | Simply Wall St
The Returns At United Parcel Service (NYSE:UPS) Provide Us With Signs Of What's To Come2 weeks ago | Simply Wall St
Did You Participate In Any Of United Parcel Service's (NYSE:UPS) Respectable 38% Return?Valuation
Is United Parcel Service undervalued compared to its fair value and its price relative to the market?
31.42x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: UPS ($159.29) is trading above our estimate of fair value ($111.74)
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 (31.4x) compared to the US Logistics industry average (27.6x).
PE vs Market: UPS is poor value based on its PE Ratio (31.4x) compared to the US market (19.1x).
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 (31.5x) compared to the US Logistics industry average (3.2x).
Next Steps
Future Growth
How is United Parcel Service forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
12.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UPS's forecast earnings growth (12.5% per year) is above the savings rate (2.2%).
Earnings vs Market: UPS's earnings (12.5% per year) are forecast to grow slower than the US market (24.1% per year).
High Growth Earnings: UPS's earnings are forecast to grow, but not significantly.
Revenue vs Market: UPS's revenue (5.5% per year) is forecast to grow slower than the US market (9.5% per year).
High Growth Revenue: UPS's revenue (5.5% 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 (76.8%).
Next Steps
Past Performance
How has United Parcel Service performed over the past 5 years?
2.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UPS has high quality earnings.
Growing Profit Margin: UPS's current net profit margins (5.7%) are lower than last year (6.6%).
Past Earnings Growth Analysis
Earnings Trend: UPS's earnings have grown by 2% 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%) over the past year, making it difficult to compare to the Logistics industry average (-22.4%).
Return on Equity
High ROE: Whilst UPS's Return on Equity (100.02%) 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 ($20.2B) exceed its short term liabilities ($16.3B).
Long Term Liabilities: UPS's short term assets ($20.2B) do not cover its long term liabilities ($41.4B).
Debt to Equity History and Analysis
Debt Level: UPS's debt to equity ratio (604.5%) is considered high.
Reducing Debt: UPS's debt to equity ratio has reduced from 672.2% to 604.5% over the past 5 years.
Debt Coverage: UPS's debt is well covered by operating cash flow (39.2%).
Interest Coverage: UPS earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is United Parcel Service current dividend yield, its reliability and sustainability?
2.54%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: UPS's dividend (2.54%) is higher than the bottom 25% of dividend payers in the US market (1.59%).
High Dividend: UPS's dividend (2.54%) is low compared to the top 25% of dividend payers in the US market (4.31%).
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: At its current payout ratio (77.7%), UPS's 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 (47.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Carol Tomé (63 yo)
0.17
Tenure
US$307,402
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 served as Chief Financial Officer of Home Depot, Inc. from May ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 4.5yrs | US$18.03m | 0.036% $ 49.6m | |
| CEO & Director | 0.17yr | US$307.40k | 0.0022% $ 3.0m | |
| Senior VP | 0.92yr | US$6.26m | 0.0031% $ 4.2m | |
| Senior VP & Chief Marketing Officer | 2.17yrs | US$4.58m | 0.0018% $ 2.5m | |
| Senior VP and Chief Strategy & Transformation Officer | 2.42yrs | US$7.13m | 0.0022% $ 3.1m | |
| Senior VP and Chief Information & Engineering Officer | 3.33yrs | no data | 0.0060% $ 8.2m | |
| VP & Investor Relations Officer | 4.33yrs | no data | no data | |
| Senior VP | 4.58yrs | no data | 0.0040% $ 5.6m | |
| Chief Corporate Affairs & Communications Officer | 0.083yr | no data | 0.0015% $ 2.1m | |
| Chief Sales & Solutions Officer | 6.58yrs | no data | 0.0065% $ 8.9m | |
| Senior VP & Chief Human Resources Officer | 1.08yrs | no data | 0.00060% $ 825.2k | |
| Head of German Operations | no data | no data | no data |
2.2yrs
Average Tenure
55yo
Average Age
Experienced Management: UPS's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 4.5yrs | US$18.03m | 0.036% $ 49.6m | |
| CEO & Director | 0.17yr | US$307.40k | 0.0022% $ 3.0m | |
| Independent Director | 23.58yrs | US$302.40k | 0.0032% $ 4.4m | |
| Lead Independent Director | 4.5yrs | US$332.40k | 0.000020% $ 27.5k | |
| Independent Director | 12.75yrs | US$282.40k | 0.00018% $ 247.5k | |
| Independent Director | 3.5yrs | US$282.40k | no data | |
| Independent Director | 15yrs | US$282.40k | 0.00056% $ 770.2k | |
| Independent Director | 6yrs | US$282.40k | no data | |
| Independent Director | 7.58yrs | US$302.40k | no data | |
| Independent Director | 10yrs | US$282.40k | no data | |
| Independent Director | 8.08yrs | US$282.40k | no data | |
| Independent Director | 2.5yrs | US$282.40k | no data |
7.8yrs
Average Tenure
64yo
Average Age
Experienced Board: UPS's board of directors are considered experienced (7.8 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$137.527b
- Shares outstanding: 863.38m
- Website: https://www.ups.com
Number of Employees
Location
- United Parcel Service, Inc.
- 55 Glenlake Parkway, NE
- 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 |
| UPSS34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 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 | 2020/08/14 13:11 |
| End of Day Share Price | 2020/08/13 00:00 |
| Earnings | 2020/06/30 |
| 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.