UNITED PARCEL SERVICE-CL B (UPS) Stock Fundamental Analysis
NYSE:UPS - New York Stock Exchange, Inc. - US9113121068 - Common Stock
Overall UPS gets a fundamental rating of 6 out of 10. We evaluated UPS against 21 industry peers in the Air Freight & Logistics industry. While UPS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. UPS has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally UPS also has an excellent dividend rating. This makes UPS very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
UPS had positive earnings in the past year.
In the past year UPS had a positive cash flow from operations.
In the past 5 years UPS has always been profitable.
Each year in the past 5 years UPS had a positive operating cash flow.
1.2 Ratios
UPS has a better Return On Assets (8.30%) than 84.21% of its industry peers.
With an excellent Return On Equity value of 33.61%, UPS belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.84%, UPS is doing good in the industry, outperforming 78.95% of the companies in the same industry.
UPS had an Average Return On Invested Capital over the past 3 years of 17.31%. This is significantly above the industry average of 10.93%.
The last Return On Invested Capital (11.84%) for UPS is well below the 3 year average (17.31%), which needs to be investigated, but indicates that UPS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 33.61% | ||
| ROIC | 11.84% |
ROA(3y)14.76%
ROA(5y)10.82%
ROE(3y)62.52%
ROE(5y)105.58%
ROIC(3y)17.31%
ROIC(5y)15.96%
1.3 Margins
UPS has a Profit Margin of 6.25%. This is amongst the best in the industry. UPS outperforms 84.21% of its industry peers.
In the last couple of years the Profit Margin of UPS has grown nicely.
UPS has a Operating Margin of 8.90%. This is amongst the best in the industry. UPS outperforms 89.47% of its industry peers.
UPS's Operating Margin has been stable in the last couple of years.
UPS has a Gross Margin of 79.88%. This is amongst the best in the industry. UPS outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of UPS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.9% | ||
| PM (TTM) | 6.25% | ||
| GM | 79.88% |
OM growth 3Y0.18%
OM growth 5Y0.56%
PM growth 3Y66.88%
PM growth 5Y2.04%
GM growth 3Y0.53%
GM growth 5Y0.81%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), UPS is creating value.
UPS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, UPS has less shares outstanding
UPS has a worse debt/assets ratio than last year.
2.2 Solvency
UPS has an Altman-Z score of 3.47. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of UPS (3.47) is better than 68.42% of its industry peers.
The Debt to FCF ratio of UPS is 5.03, which is a neutral value as it means it would take UPS, 5.03 years of fcf income to pay off all of its debts.
UPS has a better Debt to FCF ratio (5.03) than 73.68% of its industry peers.
UPS has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.21, UPS is doing worse than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.39
WACC8.53%
2.3 Liquidity
UPS has a Current Ratio of 1.14. This is a normal value and indicates that UPS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.14, UPS is in line with its industry, outperforming 42.11% of the companies in the same industry.
UPS has a Quick Ratio of 1.14. This is a normal value and indicates that UPS is financially healthy and should not expect problems in meeting its short term obligations.
UPS's Quick ratio of 1.14 is in line compared to the rest of the industry. UPS outperforms 47.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for UPS have decreased strongly by -24.97% in the last year.
The Earnings Per Share has been growing slightly by 3.90% on average over the past years.
The Revenue has decreased by -2.57% in the past year.
UPS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.83% yearly.
EPS 1Y (TTM)-24.97%
EPS 3Y2.22%
EPS 5Y3.9%
EPS Q2Q%12.1%
Revenue 1Y (TTM)-2.57%
Revenue growth 3Y2.43%
Revenue growth 5Y4.83%
Sales Q2Q%5.62%
3.2 Future
UPS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.38% yearly.
UPS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y-14.05%
EPS Next 2Y0.3%
EPS Next 3Y4.53%
EPS Next 5Y7.38%
Revenue Next Year-0.37%
Revenue Next 2Y1.85%
Revenue Next 3Y2.77%
Revenue Next 5Y3.96%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.83, the valuation of UPS can be described as rather expensive.
UPS's Price/Earnings ratio is a bit cheaper when compared to the industry. UPS is cheaper than 73.68% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, UPS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.04, UPS is valued correctly.
Based on the Price/Forward Earnings ratio, UPS is valued a bit cheaper than 78.95% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UPS to the average of the S&P500 Index (24.44), we can say UPS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.83 | ||
| Fwd PE | 15.04 |
4.2 Price Multiples
UPS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, UPS is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.02 | ||
| EV/EBITDA | 10.87 |
4.3 Compensation for Growth
The excellent profitability rating of UPS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.57
EPS Next 2Y0.3%
EPS Next 3Y4.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.02%, UPS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.64, UPS pays a better dividend. On top of this UPS pays more dividend than 94.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, UPS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
5.2 History
On average, the dividend of UPS grows each year by 12.35%, which is quite nice.
UPS has paid a dividend for at least 10 years, which is a reliable track record.
UPS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.35%
Div Incr Years15
Div Non Decr Years25
5.3 Sustainability
UPS pays out 95.08% of its income as dividend. This is not a sustainable payout ratio.
UPS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP95.08%
EPS Next 2Y0.3%
EPS Next 3Y4.53%
UNITED PARCEL SERVICE-CL B
NYSE:UPS (1/21/2025, 8:04:00 PM)
After market: 132.519 -0.35 (-0.26%)132.87
+3.14 (+2.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners72.36%
Inst Owner Change-2.64%
Ins Owners0%
Ins Owner Change-1.03%
Market Cap113.39B
Analysts73.89
Price Target151.1 (13.72%)
Short Float %1.63%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
Yearly Dividend6.28
Dividend Growth(5Y)12.35%
DP95.08%
Div Incr Years15
Div Non Decr Years25
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.91%
Min EPS beat(2)-10.96%
Max EPS beat(2)7.14%
EPS beat(4)2
Avg EPS beat(4)1.41%
Min EPS beat(4)-10.96%
Max EPS beat(4)10.07%
EPS beat(8)4
Avg EPS beat(8)0.88%
EPS beat(12)8
Avg EPS beat(12)2.8%
EPS beat(16)12
Avg EPS beat(16)8.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.57%
Min Revenue beat(2)-2.62%
Max Revenue beat(2)-0.52%
Revenue beat(4)0
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-2.99%
Max Revenue beat(4)-0.52%
Revenue beat(8)0
Avg Revenue beat(8)-2.77%
Revenue beat(12)2
Avg Revenue beat(12)-1.76%
Revenue beat(16)5
Avg Revenue beat(16)-0.07%
PT rev (1m)-0.19%
PT rev (3m)2.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.13%
EPS NY rev (1m)0%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.04%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.83 | ||
| Fwd PE | 15.04 | ||
| P/S | 1.25 | ||
| P/FCF | 26.02 | ||
| P/OCF | 12.3 | ||
| P/B | 6.73 | ||
| P/tB | 12.14 | ||
| EV/EBITDA | 10.87 |
EPS(TTM)7.45
EY5.61%
EPS(NY)8.83
Fwd EY6.65%
FCF(TTM)5.11
FCFY3.84%
OCF(TTM)10.8
OCFY8.13%
SpS106.27
BVpS19.75
TBVpS10.94
PEG (NY)N/A
PEG (5Y)4.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 33.61% | ||
| ROCE | 15.17% | ||
| ROIC | 11.84% | ||
| ROICexc | 13.37% | ||
| ROICexgc | 15.9% | ||
| OM | 8.9% | ||
| PM (TTM) | 6.25% | ||
| GM | 79.88% | ||
| FCFM | 4.81% |
ROA(3y)14.76%
ROA(5y)10.82%
ROE(3y)62.52%
ROE(5y)105.58%
ROIC(3y)17.31%
ROIC(5y)15.96%
ROICexc(3y)20.61%
ROICexc(5y)18.79%
ROICexgc(3y)24.46%
ROICexgc(5y)22.21%
ROCE(3y)22.18%
ROCE(5y)20.71%
ROICexcg growth 3Y-2.44%
ROICexcg growth 5Y-1.55%
ROICexc growth 3Y-3.57%
ROICexc growth 5Y-1.5%
OM growth 3Y0.18%
OM growth 5Y0.56%
PM growth 3Y66.88%
PM growth 5Y2.04%
GM growth 3Y0.53%
GM growth 5Y0.81%
F-Score6
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 5.03 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 136.63% | ||
| Cap/Sales | 5.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.3% | ||
| Profit Quality | 76.91% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 3.47 |
F-Score6
WACC8.53%
ROIC/WACC1.39
Cap/Depr(3y)148.29%
Cap/Depr(5y)183.16%
Cap/Sales(3y)4.91%
Cap/Sales(5y)5.95%
Profit Quality(3y)80.15%
Profit Quality(5y)133.43%
High Growth Momentum
Growth
EPS 1Y (TTM)-24.97%
EPS 3Y2.22%
EPS 5Y3.9%
EPS Q2Q%12.1%
EPS Next Y-14.05%
EPS Next 2Y0.3%
EPS Next 3Y4.53%
EPS Next 5Y7.38%
Revenue 1Y (TTM)-2.57%
Revenue growth 3Y2.43%
Revenue growth 5Y4.83%
Sales Q2Q%5.62%
Revenue Next Year-0.37%
Revenue Next 2Y1.85%
Revenue Next 3Y2.77%
Revenue Next 5Y3.96%
EBIT growth 1Y-18.18%
EBIT growth 3Y2.62%
EBIT growth 5Y5.41%
EBIT Next Year24.76%
EBIT Next 3Y15.6%
EBIT Next 5Y10.3%
FCF growth 1Y-56.92%
FCF growth 3Y0.22%
FCF growth 5Y-4.6%
OCF growth 1Y-34.24%
OCF growth 3Y-0.71%
OCF growth 5Y-4.23%