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.


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

7.7%

UPS

6.9%

US Logistics

-0.04%

US Market


1 Year Return

34.6%

UPS

34.5%

US Logistics

17.1%

US Market

Return vs Industry: UPS matched the US Logistics industry which returned 34% over the past year.

Return vs Market: UPS exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

UPSIndustryMarket
7 Day7.7%6.9%-0.04%
30 Day35.4%24.0%5.1%
90 Day71.8%53.9%19.5%
1 Year39.6%34.6%38.1%34.5%19.6%17.1%
3 Year50.0%36.5%41.5%32.5%42.5%33.3%
5 Year76.9%51.7%60.6%43.7%75.1%56.2%

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?

30.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UPS ($155.85) is trading above our estimate of fair value ($112.1)

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 (30.7x) compared to the US Logistics industry average (28x).

PE vs Market: UPS is poor value based on its PE Ratio (30.7x) compared to the US market (19.2x).


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 (30.8x) compared to the US Logistics industry average (3x).


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% 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 (9.4% 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?

2.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UPS's dividend (2.59%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: UPS's dividend (2.59%) is low compared to the top 25% of dividend payers in the US market (4.29%).


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

  • Explore strong dividend paying companies in the Transportation industry.

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

NamePositionTenureCompensationOwnership
David Abney
Executive Chairman4.5yrsUS$18.03m0.036%
$ 48.5m
Carol Tomé
CEO & Director0.17yrUS$307.40k0.0022%
$ 2.9m
Brian Newman
Senior VP0.92yrUS$6.26m0.0031%
$ 4.1m
Kevin Warren
Senior VP & Chief Marketing Officer2.17yrsUS$4.58m0.0018%
$ 2.4m
Scott Price
Senior VP and Chief Strategy & Transformation Officer2.42yrsUS$7.13m0.0022%
$ 3.0m
Juan Perez
Senior VP and Chief Information & Engineering Officer3.33yrsno data0.0060%
$ 8.0m
Scott Childress
VP & Investor Relations Officer4.33yrsno datano data
Norman Brothers
Senior VP4.58yrsno data0.0040%
$ 5.4m
Laura Lane
Chief Corporate Affairs & Communications Officer0.083yrno data0.0015%
$ 2.0m
Kathleen Gutmann
Chief Sales & Solutions Officer6.58yrsno data0.0065%
$ 8.7m
Charlene Thomas
Senior VP & Chief Human Resources Officer1.08yrsno data0.00060%
$ 807.3k
Stefan Schurfeld
Head of German Operationsno datano datano data

2.2yrs

Average Tenure

55yo

Average Age

Experienced Management: UPS's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Abney
Executive Chairman4.5yrsUS$18.03m0.036%
$ 48.5m
Carol Tomé
CEO & Director0.17yrUS$307.40k0.0022%
$ 2.9m
Ann Livermore
Independent Director23.58yrsUS$302.40k0.0032%
$ 4.3m
William Johnson
Lead Independent Director4.5yrsUS$332.40k0.000020%
$ 26.9k
Rudolph Harold Markham
Independent Director12.75yrsUS$282.40k0.00018%
$ 242.2k
Franck Moison
Independent Director3.5yrsUS$282.40kno data
Michael Burns
Independent Director15yrsUS$282.40k0.00056%
$ 753.5k
John Stankey
Independent Director6yrsUS$282.40kno data
Rodney Adkins
Independent Director7.58yrsUS$302.40kno data
Clark Randt
Independent Director10yrsUS$282.40kno data
Kevin M. Warsh
Independent Director8.08yrsUS$282.40kno data
Christiana Shi
Independent Director2.5yrsUS$282.40kno 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$134.557b
  • 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

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 4 REPR 1 COM 'B' USD0.01BRBRLAug 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 Analysis2020/08/11 23:40
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
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.