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UPS

United Parcel ServiceNYSE:UPS Stock Report

Market Cap

US$178.4b

7D

-3.0%

1Y

19.6%

Updated

30 Nov, 2021

Data

Company Financials +
UPS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends5/6

UPS Stock Overview

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

United Parcel Service Competitors

FedEx

NYSE:FDX

US$63.9b

Expeditors International of Washington

NasdaqGS:EXPD

US$21.5b

C.H. Robinson Worldwide

NasdaqGS:CHRW

US$12.4b

Forward Air

NasdaqGS:FWRD

US$2.8b

Price History & Performance

Summary of all time highs, changes and price drops for United Parcel Service
Historical stock prices
Current Share PriceUS$204.64
52 Week HighUS$220.24
52 Week LowUS$154.76
Beta1.11
1 Month Change-4.14%
3 Month Change4.61%
1 Year Change19.62%
3 Year Change77.53%
5 Year Change75.57%
Change since IPO200.39%

Recent News & Updates

Nov 26
We Think United Parcel Service (NYSE:UPS) Can Manage Its Debt With Ease

We Think United Parcel Service (NYSE:UPS) Can Manage Its Debt With Ease

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Oct 27
UPS (NYSE:UPS) is Keeping its Debt under Control

UPS (NYSE:UPS) is Keeping its Debt under Control

United Parcel Service, Inc. (NYSE:UPS) released third quarter results yesterday. The market evidently approved of these results and is anticipating a strong holiday season despite the ongoing supply chain issues. One aspect of UPS that may concern investors is the high level of debt. The company’s debt to equity ratio is 2.05 which is very high, so we decided to take a closer look at how manageable this debt is.

Oct 14

Is UPS Stock A Buy Or Sell During The Dip?

Favorable e-commerce trends should drive growth. UPS' massive package sortation footprint, immense air and delivery fleet, and global operations provide a deep, wide moat. Parcel carriers like UPS have pricing power in an inflationary environment.

Oct 04

UPS: 'Better Not Bigger' Strategy Makes It A Buy

UPS's new strategy called "Better Not Bigger" changes the strategic priorities of the company and should make it a more intelligent capital allocator. UPS is also benefiting from the massive e-commerce growth that the Covid pandemic brought. We believe shares are fairly valued and priced to deliver high-single-digit returns.

Shareholder Returns

UPSUS LogisticsUS Market
7D-3.0%-3.0%-0.9%
1Y19.6%10.1%23.3%

Return vs Industry: UPS exceeded the US Logistics industry which returned 10.3% over the past year.

Return vs Market: UPS underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is UPS's price volatile compared to industry and market?
UPS volatility
UPS Average Weekly Movement3.4%
Logistics Industry Average Movement5.1%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: UPS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: UPS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1907408,255Carol Tomehttps://www.ups.com

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 Supply Chain & Freight.

United Parcel Service Fundamentals Summary

How do United Parcel Service's earnings and revenue compare to its market cap?
UPS fundamental statistics
Market CapUS$178.43b
Earnings (TTM)US$6.45b
Revenue (TTM)US$94.41b

27.6x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UPS income statement (TTM)
RevenueUS$94.41b
Cost of RevenueUS$75.65b
Gross ProfitUS$18.76b
ExpensesUS$12.31b
EarningsUS$6.45b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 01, 2022

Earnings per share (EPS)7.42
Gross Margin19.87%
Net Profit Margin6.83%
Debt/Equity Ratio178.9%

How did UPS perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

55%

Payout Ratio

Valuation

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

27.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UPS ($204.64) is trading above our estimate of fair value ($185.98)

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 (27.6x) compared to the US Logistics industry average (18.1x).

PE vs Market: UPS is poor value based on its PE Ratio (27.6x) compared to the US market (17.1x).


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 (14.8x) compared to the US Logistics industry average (3.4x).


Future Growth

How is United Parcel Service forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

-6.1%

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 (-6.1% per year).

Earnings vs Market: UPS's earnings are forecast to decline over the next 3 years (-6.1% per year).

High Growth Earnings: UPS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: UPS's revenue (3.3% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: UPS's revenue (3.3% 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 (43.9%).


Past Performance

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

3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UPS has high quality earnings.

Growing Profit Margin: UPS's current net profit margins (6.8%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: UPS's earnings have grown by 3.8% per year over the past 5 years.

Accelerating Growth: UPS's earnings growth over the past year (40.7%) exceeds its 5-year average (3.8% per year).

Earnings vs Industry: UPS earnings growth over the past year (40.7%) underperformed the Logistics industry 74.7%.


Return on Equity

High ROE: Whilst UPS's Return on Equity (53.5%) 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 ($22.8B) exceed its short term liabilities ($15.5B).

Long Term Liabilities: UPS's short term assets ($22.8B) do not cover its long term liabilities ($38.2B).


Debt to Equity History and Analysis

Debt Level: UPS's net debt to equity ratio (91.4%) is considered high.

Reducing Debt: UPS's debt to equity ratio has reduced from 561% to 178.9% over the past 5 years.

Debt Coverage: UPS's debt is well covered by operating cash flow (60%).

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?

1.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UPS's dividend (1.99%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: UPS's dividend (1.99%) is low compared to the top 25% of dividend payers in the US market (3.58%).


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 (55.1%), 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 (42.2% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Carol Tome (64 yo)

1.42yrs

Tenure

US$4,354,787

Compensation

Ms. Carol B. Tome serves as the Chief Financial Officer and Executive Vice President of Corporate Services at Home Depot U.S.A., Inc. Ms. Tome has been Chief Executive Officer and Director of United Parcel...


CEO Compensation Analysis

Compensation vs Market: Carol's total compensation ($USD4.35M) is below average for companies of similar size in the US market ($USD11.11M).

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 (3.5 years average tenure).


Board Members

Experienced Board: UPS's board of directors are considered experienced (4.2 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 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$178.435b
  • Shares outstanding: 869.14m
  • Website: https://www.ups.com

Number of Employees


Location

  • United Parcel Service, Inc.
  • 55 Glenlake Parkway, N.E.
  • Atlanta
  • Georgia
  • 30328
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 00:11
End of Day Share Price2021/11/29 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.