NYSE:UPS

Stock Analysis Report

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Executive Summary

United Parcel Service, Inc. provides letter and package delivery, specialized transportation, logistics, and financial services. More Details


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 +/- 5% a week.

Volatility Over Time: UPS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

UPS

-2.8%

US Logistics

0.3%

US Market


1 Year Return

36.3%

UPS

34.8%

US Logistics

21.1%

US Market

Return vs Industry: UPS exceeded the US Logistics industry which returned 34.8% over the past year.

Return vs Market: UPS exceeded the US Market which returned 21.1% over the past year.


Shareholder returns

UPSIndustryMarket
7 Day-2.0%-2.8%0.3%
30 Day-7.4%-7.2%3.3%
90 Day-7.6%-7.2%14.2%
1 Year40.8%36.3%37.8%34.8%23.8%21.1%
3 Year34.0%21.4%20.4%12.8%45.0%35.4%
5 Year106.3%75.9%107.9%84.8%127.7%102.3%

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

Valuation

Is United Parcel Service undervalued compared to its fair value and its price relative to the market?

30.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UPS ($159.84) is trading above our estimate of fair value ($98.28)

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 (30.2x) compared to the US Logistics industry average (28.8x).

PE vs Market: UPS is poor value based on its PE Ratio (30.2x) compared to the US market (21.2x).


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 (24.7x) compared to the US Logistics industry average (3.1x).


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?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UPS's forecast earnings growth (11.8% per year) is above the savings rate (2%).

Earnings vs Market: UPS's earnings (11.8% per year) are forecast to grow slower than the US market (21.5% per year).

High Growth Earnings: UPS's earnings are forecast to grow, but not significantly.

Revenue vs Market: UPS's revenue (4.9% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: UPS's revenue (4.9% 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 (43.3%).


Next Steps

Past Performance

How has United Parcel Service performed over the past 5 years?

1.3%

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 (6.8%).


Past Earnings Growth Analysis

Earnings Trend: UPS's earnings have grown by 1.3% 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 (-8.2%) over the past year, making it difficult to compare to the Logistics industry average (-26.8%).


Return on Equity

High ROE: Whilst UPS's Return on Equity (81.77%) 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 ($19.9B) exceed its short term liabilities ($15.5B).

Long Term Liabilities: UPS's short term assets ($19.9B) do not cover its long term liabilities ($41.3B).


Debt to Equity History and Analysis

Debt Level: UPS's debt to equity ratio (451.7%) is considered high.

Reducing Debt: UPS's debt to equity ratio has reduced from 746.7% to 451.7% over the past 5 years.

Debt Coverage: UPS's debt is well covered by operating cash flow (48.3%).

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?

2.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UPS's dividend (2.53%) is higher than the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: UPS's dividend (2.53%) is low compared to the top 25% of dividend payers in the US market (3.87%).


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 (75.3%), 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 (45.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Carol Tomé (63 yo)

0.58

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 has been Chief Executive Officer and Director of United Parcel...


Leadership Team

NamePositionTenureCompensationOwnership
Carol Tomé
CEO & Director0.58yrUS$307.40k0.0022%
$ 3.0m
Brian Newman
Senior VP1.33yrsUS$6.26m0.0031%
$ 4.2m
Kevin Warren
Senior VP & Chief Marketing Officer2.58yrsUS$4.58m0.0018%
$ 2.5m
Scott Price
Senior VP & President of UPS International2.83yrsUS$7.13m0.0022%
$ 3.1m
Juan Perez
Senior VP and Chief Information & Engineering Officer3.75yrsno data0.0060%
$ 8.2m
Scott Childress
VP & Investor Relations Officer4.75yrsno datano data
Norman Brothers
Chief Legal0.42yrno data0.0040%
$ 5.6m
Laura Lane
Chief Corporate Affairs0.50yrno data0.0015%
$ 2.1m
Kathleen Gutmann
Chief Sales & Solutions Officer7yrsno data0.0065%
$ 9.0m
Darrell Ford
Chief Human Resources Officerno datano datano data
Stefan Schurfeld
Head of German Operationsno datano datano data
Noel Massie
Manager of U.S. Operationsno datano datano data

2.6yrs

Average Tenure

55yo

Average Age

Experienced Management: UPS's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carol Tomé
CEO & Director0.58yrUS$307.40k0.0022%
$ 3.0m
Ann Livermore
Independent Director24yrsUS$302.40k0.0032%
$ 4.4m
William Johnson
Independent Non-Executive Chairman0.33yrUS$332.40k0.000020%
$ 27.6k
Rudolph Harold Markham
Independent Director13.17yrsUS$282.40k0.00018%
$ 248.7k
Franck Moison
Independent Director3.92yrsUS$282.40kno data
Michael Burns
Independent Director15.42yrsUS$282.40k0.00056%
$ 773.7k
Rodney Adkins
Independent Director8yrsUS$302.40kno data
Clark Randt
Independent Director10.42yrsUS$282.40kno data
Kevin M. Warsh
Independent Director8.5yrsUS$282.40kno data
Christiana Shi
Independent Director2.92yrsUS$282.40kno data
Eva Boratto
Director0.33yrno datano data
Angela Hwang
Director0.50yrno datano data

8.3yrs

Average Tenure

62yo

Average Age

Experienced Board: UPS's board of directors are considered experienced (8.3 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.


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$138.165b
  • Shares outstanding: 864.40m
  • Website: https://www.ups.com

Number of Employees


Location

  • United Parcel Service, Inc.
  • 55 Glenlake Parkway, NE
  • 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
UPABXTRA (XETRA Trading Platform)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 16 REP 1 COMBRBRLAug 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 Analysis2021/01/21 00:32
End of Day Share Price2021/01/20 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.