UPS Stock Overview
United Parcel Service, Inc. provides letter and package delivery, transportation, logistics, and related services.
United Parcel Service, Inc. Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$205.88|
|52 Week High||US$233.72|
|52 Week Low||US$165.34|
|1 Month Change||12.76%|
|3 Month Change||12.42%|
|1 Year Change||4.47%|
|3 Year Change||76.28%|
|5 Year Change||80.87%|
|Change since IPO||202.21%|
Recent News & Updates
UPS: Signed, Sealed, Delivered
UPS has benefited from the pandemic and is holding up well, with e-commerce volumes under pressure. The company has done quite well in recent years on the back of the secular growth trends, having reduced leverage a lot as well. A 15-16 times earnings multiple looks fair given the many moving developments, some of which have the potential to impact the business quite a bit. Shares of United Parcel Service (UPS) have come to life a bit again despite challenges imposed by lower e-commerce volumes as of late, labor shortages, higher fuel costs, and other items. In the week in which the company announced its expansion of its Italian activities, it is time to review the investment case of UPS. It was all the way back in 2015 when I last had a look at UPS, at the time concluding that the situation was not compelling enough given the future risks. I noted that the company was well positioned to benefit from continued growth in e-commerce, as I was a bit cautious given the premium valuation and potential for stiff competition. As it turned out, shares have doubled from $100 to $200 in a 7-year time frame, as the performance has been largely in line with the S&P 500, in fact, that its performance has lagged the major index a bit. Former Take Back in 2015, UPS already focused on the delivery of packages, LTL shipments and supply chain management solutions, something still the case today. Letter volumes were of course under pressure, with package volumes up, driven by the relentless rise of e-commerce, although large retailers like Walmart (WMT) and Amazon.com (AMZN) were investing heavily into own delivery infrastructure, having the potential to cut out large parts of the volume for essentially a middle man. The company generated some $58 billion in sales at the time, with operating margins of 13-14% looking quite resilient. The company set ambitious long-term targets, implicitly calling for sales of $68 billion by 2019 with after-tax earnings seen at $6.5 billion, translating into earnings of $8-$9 per share. With shares trading at 12 times forward earnings (about 4-5 years in time) I believed the valuation was full, given the solid positioning which invited some competition as well (even competition by its own clients). With UPS at the time trading at 20 times earnings, amidst a leverage position of roughly 1 times, I noted that post-retirement obligations of $12 billion would increase leverage to roughly 2.5 times, as that valuation was full enough for me. Caution Saves The Day Having taken a cautious stance at $100 in 2015, I noted that shares have been trading around the $100 mark pretty much until the start of the pandemic early in 2020. Shares rallied to a high in the $230s following the boom, sold off to $170 recently, to now trade at $205 per share again. In February of this year, UPS posted its 2021 results with full year revenues up a decent 15% to $97 billion and change, as the company lived up to its long-term promises. Operating profits were essentially up 50% to $13 billion, with adjusted numbers pretty much in line with the GAAP numbers. Adjusted earnings came in at $12.13 per share. Net debt was reported around $11.3 billion, including some $9 billion in pension-related liabilities. Nonetheless, with EBITDA trending around $16 billion, leverage ratios are quite manageable, supporting quite a bit of debt. Even as capital spending on equipment fell to $4.2 billion last year, it still exceeded depreciation charges by more than a billion, as cash flow conversion is always a challenge, certainly given the electrification challenge. The company guided for 2023 revenues to break through the $100 billion mark, seen around $102 billion, as operating margins are seen around 13.7%, indicating a $14 billion operating profit expectation. In April, the company posted first quarter results which were in line with expectations, as the company reiterated the full year guidance while reconfirming a >$6 dividend per share on an annual basis. With the second quarter results coming in a bit soft, the company reiterated the full year guidance. This makes that a roughly $13 earnings per share number come in at 15-16 times earnings, a reasonable multiple albeit that these are good times in the cycle. By the second quarter, net debt is down to $8.5 billion (excluding other liabilities). The 877 million shares value equity at $180 billion here, for a $188 billion enterprise valuation, equal to about 1.8 times sales.
UPS declares $1.52 dividend
UPS (NYSE:UPS) declares $1.52/share quarterly dividend, in line with previous. Forward yield 3.14% Payable Sept. 1; for shareholders of record Aug. 15; ex-div Aug. 12. See UPS Dividend Scorecard, Yield Chart, & Dividend Growth.
|UPS||US Logistics||US Market|
Return vs Industry: UPS exceeded the US Logistics industry which returned -1.5% over the past year.
Return vs Market: UPS exceeded the US Market which returned -10.2% over the past year.
|UPS Average Weekly Movement||3.9%|
|Logistics Industry Average Movement||6.7%|
|Market Average Movement||7.7%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: UPS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: UPS's weekly volatility (4%) has been stable over the past year.
About the Company
United Parcel Service, Inc. provides letter and package delivery, transportation, logistics, and related services. It operates through two segments, U.S. Domestic Package and International Package.
United Parcel Service, Inc. Fundamentals Summary
|UPS fundamental statistics|
Is UPS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|UPS income statement (TTM)|
|Cost of Revenue||US$75.56b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Oct 25, 2022
|Earnings per share (EPS)||12.59|
|Net Profit Margin||10.92%|
How did UPS perform over the long term?See historical performance and comparison