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 $79.2B. The stock trades at 17.29x trailing earnings and yields 7.05%.
- Sector
- Industrials
- Industry
- Trucking & Courier Services (No Air)
- Market cap
- $79.2B
- P/E ratio
- 17.29
- EPS (TTM)
- $6.56
- Revenue (TTM)
- $88.7B
- Free cash flow
- $4.8B
- Profit margin
- 6.3%
- Dividend yield
- 7.05%
- Shares outstanding
- 713.9M
Financial health: Weak3.5/10
2 strengths, 5 concerns. Weakest points: debt to equity, gross margin, revenue growth and 2 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: 34.3% (Strong, benchmark > 15%) — Earns 34.3% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 16.6% (Concern, benchmark > 40%) — Keeps 16.6% of revenue after the direct cost of sales, well short of the > 40% mark.
- Net margin: 6.3% (Watch, benchmark > 10%) — Turns 6.3% 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: -2.6% (Concern, benchmark > 10%) — Revenue changed -2.6% year on year, well short of the > 10% mark.
- Earnings growth: -3.6% (Concern, benchmark > 10%) — Earnings changed -3.6% year on year, well short of the > 10% mark.
- Payout ratio: 96.9% (Concern, benchmark < 60%) — Pays out 96.9% of earnings as dividends — above the level usually considered sustainable.