UPS Stock Overview
United Parcel Service, Inc. provides letter and package delivery, transportation, logistics, and related services.
United Parcel Service Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$183.14|
|52 Week High||US$233.72|
|52 Week Low||US$173.19|
|1 Month Change||-2.60%|
|3 Month Change||-14.94%|
|1 Year Change||-14.42%|
|3 Year Change||84.23%|
|5 Year Change||75.76%|
|Change since IPO||168.83%|
Recent News & Updates
Is UPS Stock A Buy, Sell, Or Hold After Recent Earnings?
UPS's current share price is only marginally higher than where it was pre-earnings announcement, despite an earnings beat for Q1 2022. The company's packaging volume and margins in Q1 weren't as good as expected, but UPS's 2022 earnings should be in line with expectations considering revenue mix optimization and productivity initiatives. I have a positive view of UPS's long-term outlook given the company's focus on improving ROIC and increasing shareholder capital returns, and this makes the stock a Buy.
UPS (NYSE:UPS) Pays a Generous Dividend which is well Covered by Cash Flows
United Parcel Service, Inc. (NYSE:UPS) released first quarter financial results on Tuesday. The results were a lot better than the market was expecting, but the share price fell after the earnings call. During the call, company executives said they expected US package volumes to decline during the current quarter before improving in the next quarter.
|UPS||US Logistics||US Market|
Return vs Industry: UPS exceeded the US Logistics industry which returned -19% over the past year.
Return vs Market: UPS underperformed the US Market which returned -10.8% over the past year.
|UPS Average Weekly Movement||4.2%|
|Logistics Industry Average Movement||6.3%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||2.9%|
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 Fundamentals Summary
|UPS fundamental statistics|
Is UPS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|UPS income statement (TTM)|
|Cost of Revenue||US$74.70b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Jul 26, 2022
|Earnings per share (EPS)||12.31|
|Net Profit Margin||10.90%|
How did UPS perform over the long term?See historical performance and comparison
3.3%Current Dividend Yield
Is United Parcel Service undervalued compared to its fair value and its price relative to the market?
Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: UPS ($183.14) is trading below our estimate of fair value ($240.19)
Significantly Below Fair Value: UPS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: UPS is poor value based on its PE Ratio (14.9x) compared to the US Logistics industry average (11.6x).
PE vs Market: UPS is good value based on its PE Ratio (14.9x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: UPS is poor value based on its PEG Ratio (5.4x)
Price to Book Ratio
PB vs Industry: UPS is overvalued based on its PB Ratio (10.4x) compared to the US Logistics industry average (2.5x).
How is United Parcel Service forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UPS's forecast earnings growth (2.8% per year) is above the savings rate (1.9%).
Earnings vs Market: UPS's earnings (2.8% per year) are forecast to grow slower than the US market (12.5% per year).
High Growth Earnings: UPS's earnings are forecast to grow, but not significantly.
Revenue vs Market: UPS's revenue (3.4% per year) is forecast to grow slower than the US market (7.9% per year).
High Growth Revenue: UPS's revenue (3.4% 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 (40.9%).
How has United Parcel Service performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UPS has high quality earnings.
Growing Profit Margin: UPS's current net profit margins (10.9%) are higher than last year (5.8%).
Past Earnings Growth Analysis
Earnings Trend: UPS's earnings have grown by 16.1% per year over the past 5 years.
Accelerating Growth: UPS's earnings growth over the past year (108.1%) exceeds its 5-year average (16.1% per year).
Earnings vs Industry: UPS earnings growth over the past year (108.1%) exceeded the Logistics industry 71.2%.
Return on Equity
High ROE: Whilst UPS's Return on Equity (69.72%) is outstanding, this metric is skewed due to their high level of debt.
How is United Parcel Service's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: UPS's short term assets ($25.6B) exceed its short term liabilities ($16.8B).
Long Term Liabilities: UPS's short term assets ($25.6B) do not cover its long term liabilities ($37.8B).
Debt to Equity History and Analysis
Debt Level: UPS's net debt to equity ratio (57.6%) is considered high.
Reducing Debt: UPS's debt to equity ratio has reduced from 3042.7% to 138.9% over the past 5 years.
Debt Coverage: UPS's debt is well covered by operating cash flow (69.8%).
Interest Coverage: UPS earns more interest than it pays, so coverage of interest payments is not a concern.
What is United Parcel Service current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: UPS's dividend (3.32%) is higher than the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: UPS's dividend (3.32%) is low compared to the top 25% of dividend payers in the US market (4.06%).
Stability and Growth of Payments
Stable Dividend: UPS's dividends per share have been stable in the past 10 years.
Growing Dividend: UPS's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (37.2%), UPS's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (48.1%), UPS's dividend payments are well covered by cash flows.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Carol Tome (64 yo)
Ms. Carol B. Tome serves as the Chief Financial Officer and Executive Vice President of Corporate Services at Home Depot U.S.A., Inc. Ms. Tome has been Chief Executive Officer and Director of United Parcel...
CEO Compensation Analysis
Compensation vs Market: Carol's total compensation ($USD27.62M) is above average for companies of similar size in the US market ($USD13.27M).
Compensation vs Earnings: Carol's compensation has increased by more than 20% in the past year.
Experienced Management: UPS's management team is considered experienced (2.7 years average tenure).
Experienced Board: UPS's board of directors are considered experienced (7.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
United Parcel Service, Inc.'s employee growth, exchange listings and data sources
- Name: United Parcel Service, Inc.
- Ticker: UPS
- Exchange: NYSE
- Founded: 1907
- Industry: Air Freight and Logistics
- Sector: Transportation
- Implied Market Cap: US$157.077b
- Shares outstanding: 873.77m
- Website: https://www.ups.com
Number of Employees
- United Parcel Service, Inc.
- 55 Glenlake Parkway, N.E.
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/17 00:00|
|End of Day Share Price||2022/05/17 00:00|
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.