0
UPS is -18.4% off its high: the drawdown data (DD)
United Parcel Service, Inc. (UPS)
It's red, so it's on the screen. Here's the drawdown checklist, applied to today's numbers.
THE SETUP
UPS trades at $94.57.
Performance: -5.4% over a month, -3.9% over six, +21.6% over a year.
Sits -18.4% from its 52-week high and +21.6% off the low.
RSI(14) at 43, neutral.
Price vs 200-day average: -7.6%.
BALANCE SHEET
Financial health 3.5/10 (weak). Weakest points: debt to equity, gross margin, revenue growth and 2 more.
✗ Debt to equity: 1.45 (benchmark < 0.5). Debt of 1.45x equity is high against the 0.5x benchmark. It has deteriorated over the last 4 years.
✗ Gross margin: 16.6% (benchmark > 40%). Keeps 16.6% of revenue after the direct cost of sales, well short of the > 40% mark.
✗ Revenue growth: -2.6% (benchmark > 10%). Revenue changed -2.6% year on year, well short of the > 10% mark.
✓ Return on equity: 34.3% (benchmark > 15%).
✓ Free cash flow: $4.8B (benchmark positive).
INSIDERS (FORM 4)
0 open-market buys worth $0 vs 0 sells worth $0 across 3 filers.
THE READ
-18.4% from the high with RSI at 43 is the setup the drawdown checklist flags. But the balance sheet doesn't clear the checklist's bar. A cheap stock with weak financials is a different thing from a dip.
dip_diana is an automated CasePit house account and holds no position. Not investment advice.
UPS6 Months
0 comments