UNITED PARCEL SERVICE-CL B (UPS)
US9113121068 - Common Stock
Taking everything into account, UPS scores 6 out of 10 in our fundamental rating. UPS was compared to 20 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 correct valuation and a medium growth rate. UPS also has an excellent dividend rating. These ratings could make UPS a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
UPS had positive earnings in the past year.
UPS had a positive operating cash flow in the past year.
Each year in the past 5 years UPS has been profitable.
UPS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UPS has a better Return On Assets (8.30%) than 78.95% of its industry peers.
UPS has a better Return On Equity (33.61%) than 94.74% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.84%, UPS is in the better half of 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 above the industry average of 13.88%.
The 3 year average ROIC (17.31%) for UPS is well above the current ROIC(11.84%). The reason for the recent decline needs to be investigated.
| 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.
UPS's Profit Margin has improved in the last couple of years.
UPS's Operating Margin of 8.90% is amongst the best of the industry. UPS outperforms 89.47% of its industry peers.
UPS's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 79.88%, UPS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
The number of shares outstanding for UPS has been reduced compared to 5 years ago.
UPS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.49 indicates that UPS is not in any danger for bankruptcy at the moment.
UPS has a Altman-Z score of 3.49. This is in the better half of the industry: UPS outperforms 63.16% of its industry peers.
UPS has a debt to FCF ratio of 5.03. This is a neutral value as UPS would need 5.03 years to pay back of all of its debts.
The Debt to FCF ratio of UPS (5.03) is better 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.
UPS's Debt to Equity ratio of 1.21 is on the low side compared to the rest of the industry. UPS is outperformed by 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 3.49 |
ROIC/WACC1.39
WACC8.49%
2.3 Liquidity
A Current Ratio of 1.14 indicates that UPS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, UPS is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
A Quick Ratio of 1.14 indicates that UPS should not have too much problems paying its short term obligations.
UPS has a Quick ratio (1.14) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
UPS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.97%.
UPS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.90% yearly.
Looking at the last year, UPS shows a decrease in Revenue. The Revenue has decreased by -2.57% in the last 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
The Earnings Per Share is expected to grow by 9.86% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.98% on average over the next years.
EPS Next Y-13.87%
EPS Next 2Y0.68%
EPS Next 3Y5.1%
EPS Next 5Y9.86%
Revenue Next Year-0.42%
Revenue Next 2Y1.78%
Revenue Next 3Y2.91%
Revenue Next 5Y4.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 17.63 indicates a rather expensive valuation of UPS.
Based on the Price/Earnings ratio, UPS is valued a bit cheaper than 68.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. UPS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.76, which indicates a correct valuation of UPS.
Based on the Price/Forward Earnings ratio, UPS is valued cheaper than 84.21% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UPS to the average of the S&P500 Index (23.82), we can say UPS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 14.76 |
4.2 Price Multiples
UPS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UPS is cheaper than 63.16% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UPS is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.72 | ||
| EV/EBITDA | 11.04 |
4.3 Compensation for Growth
UPS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.52
EPS Next 2Y0.68%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.92%, UPS is a good candidate for dividend investing.
UPS's Dividend Yield is rather good when compared to the industry average which is at 2.65. UPS pays more dividend than 100.00% of the companies in the same industry.
UPS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
5.2 History
The dividend of UPS is nicely growing with an annual growth rate of 12.35%!
UPS has been paying a dividend for at least 10 years, so it has 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 Years14
Div Non Decr Years24
5.3 Sustainability
95.08% of the earnings are spent on dividend by UPS. This is not a sustainable payout ratio.
The dividend of UPS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP95.08%
EPS Next 2Y0.68%
EPS Next 3Y5.1%
UNITED PARCEL SERVICE-CL B
NYSE:UPS (11/21/2024, 8:04:00 PM)
After market: 131.45 +0.08 (+0.06%)131.37
-0.72 (-0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap112.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 14.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)4.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 33.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.9% | ||
| PM (TTM) | 6.25% | ||
| GM | 79.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-24.97%
EPS 3Y2.22%
EPS 5Y
EPS Q2Q%
EPS Next Y-13.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.57%
Revenue growth 3Y2.43%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y