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UPS

United Parcel Service NYSE:UPS Stock Report

Last Price

US$183.14

Market Cap

US$157.1b

7D

0.6%

1Y

-14.4%

Updated

17 May, 2022

Data

Company Financials +
UPS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends5/6

UPS Stock Overview

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

United Parcel Service Competitors

Price History & Performance

Summary of all time highs, changes and price drops for United Parcel Service
Historical stock prices
Current Share PriceUS$183.14
52 Week HighUS$233.72
52 Week LowUS$173.19
Beta1.16
1 Month Change-2.60%
3 Month Change-14.94%
1 Year Change-14.42%
3 Year Change84.23%
5 Year Change75.76%
Change since IPO168.83%

Recent News & Updates

Apr 29

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.

Apr 28
UPS (NYSE:UPS) Pays a Generous Dividend which is well Covered by Cash Flows

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.

Shareholder Returns

UPSUS LogisticsUS Market
7D0.6%2.1%2.7%
1Y-14.4%-15.7%-8.1%

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.

Price Volatility

Is UPS's price volatile compared to industry and market?
UPS volatility
UPS Average Weekly Movement4.2%
Logistics Industry Average Movement6.3%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

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

FoundedEmployeesCEOWebsite
1907400,945Carol Tomehttps://www.ups.com

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

How do United Parcel Service's earnings and revenue compare to its market cap?
UPS fundamental statistics
Market CapUS$157.08b
Earnings (TTM)US$10.76b
Revenue (TTM)US$98.76b

14.9x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UPS income statement (TTM)
RevenueUS$98.76b
Cost of RevenueUS$74.70b
Gross ProfitUS$24.05b
Other ExpensesUS$13.29b
EarningsUS$10.76b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 26, 2022

Earnings per share (EPS)12.31
Gross Margin24.36%
Net Profit Margin10.90%
Debt/Equity Ratio138.9%

How did UPS perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

37%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


23.8%

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).


Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.8%

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%).


Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.1%

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.


Financial Health

How is United Parcel Service's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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.


Balance Sheet


Dividend

What is United Parcel Service current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.32%

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.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Carol Tome (64 yo)

1.92yrs

Tenure

US$27,620,893

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 ($USD27.62M) is above average for companies of similar size in the US market ($USD13.27M).

Compensation vs Earnings: Carol's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: UPS's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: UPS's board of directors are considered experienced (7.3 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 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
  • Implied Market Cap: US$157.077b
  • Shares outstanding: 873.77m
  • 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 Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.