About United Parcel Service, Inc.
United Parcel Service, Inc. (UPS) is a Industrials company in the Trucking & Courier Services (No Air) industry with a market capitalisation of $95.8B. The stock trades at 21.62x trailing earnings and yields 5.84%.
- Sector
- Industrials
- Industry
- Trucking & Courier Services (No Air)
- Market cap
- $95.8B
- P/E ratio
- 21.62
- EPS (TTM)
- $6.56
- Revenue (TTM)
- $88.7B
- Free cash flow
- $4.8B
- Profit margin
- 6.3%
- Dividend yield
- 5.84%
- Shares outstanding
- 713.9M
Financial health: Weak4.1/10
2 strengths, 4 concerns. Weakest points: debt to equity, net margin, earnings growth and 1 more.
- 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: 28.6% (Strong, benchmark > 15%) — Earns 28.6% 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: 4.8% (Concern, benchmark > 10%) — Turns 4.8% of revenue into profit, well 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: 6.7% (Watch, benchmark > 10%) — Revenue changed 6.7% year on year, short of the > 10% mark.
- Earnings growth: -11.6% (Concern, benchmark > 10%) — Earnings changed -11.6% year on year, well short of the > 10% mark.
- PEG ratio: 1.63 (Watch, benchmark < 1) — At 1.63, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 126.4% (Concern, benchmark < 60%) — Pays out 126.4% of earnings as dividends — above the level usually considered sustainable.