About United Parcel Service, Inc.
United Parcel Service, Inc., a package delivery and logistics provider, offers transportation and delivery services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery services for express letters, documents, packages and palletized freight through air and ground services. The International Package segment provides small package operations in Europe, the Middle East and Africa, Canada and Latin America, and Asia. The company offers a range of guaranteed day- and time-definite international transportation services; day-definite services; cross-border ground package delivery; contract-only, e-commerce solutions for non-urgent, and cross-border shipments; and international service for urgent and palletized shipments. It also provides international air and ocean freight forwarding, contract logistics, customs brokerage and insurance, mail services, healthcare logistics, distribution, and post-sales services. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.
United Parcel Service, Inc. (UPS) is a Industrials company in the Integrated Freight & Logistics industry with a market capitalisation of $85.3B. The stock trades at 18.64x trailing earnings and yields 6.56%.
- Sector
- Industrials
- Industry
- Integrated Freight & Logistics
- Market cap
- $85.3B
- P/E ratio
- 18.64
- Forward P/E
- 12.42
- EPS (TTM)
- $5.38
- Revenue (TTM)
- $89.9B
- Free cash flow
- $5.6B
- Profit margin
- 5.1%
- Dividend yield
- 6.56%
- Beta
- 1.04
- Shares outstanding
- 749.3M
Financial health: Weak4.5/10
2 strengths, 3 concerns. Weakest points: debt to equity, earnings growth, payout ratio.
- Debt to equity: 1.45 (Concern, benchmark < 0.5) — Debt of 1.45x equity is high against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 3.7y (Watch, benchmark < 4 years) — Net debt of $17.7B is 3.7x annual free cash flow — about 4 years of cash flow to repay.
- Current ratio: 1.22 (Watch, benchmark > 1.5) — Short-term assets cover 1.22x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 29.6% (Strong, benchmark > 15%) — Earns 29.6% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 22.4% (Watch, benchmark > 40%) — Keeps 22.4% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 5.1% (Watch, benchmark > 10%) — Turns 5.1% of revenue into profit, short of the > 10% mark.
- Free cash flow: $4.8B (Strong, benchmark positive) — Generated $4.8B of free cash flow after capital spending. It has deteriorated over the last 4 years.
- Revenue growth: 7.6% (Watch, benchmark > 10%) — Revenue changed 7.6% year on year, short of the > 10% mark.
- Earnings growth: -53.0% (Concern, benchmark > 10%) — Earnings changed -53.0% year on year, well short of the > 10% mark.
- PEG ratio: 1.43 (Watch, benchmark < 1) — At 1.43, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 121.9% (Concern, benchmark < 60%) — Pays out 121.9% of earnings as dividends — above the level usually considered sustainable.