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United Parcel Service Inc Class B UPS

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Stock XNYS Rating as of
$137.64 +0.08 (0.06%)
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As of Delayed Price Closed
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Company Report

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UPS' Volume and Margins Pressured, but Firm Still Expects Solid Second-Half 2024 Improvement

Matthew Young

UPS is the giant among global small-parcel delivery companies, and it’s one of three commercial providers that dominate the landscape; FedEx and UPS are the major US incumbents, while DHL Express leads in Europe. The company divested its less-than-truckload division, UPS Freight, in the second quarter of 2021 as part of CEO Carol Tomé's "better, not bigger" framework.

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Price vs Fair Value

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UPS is trading at a 560% premium.
Price
$137.64
Fair Value
$719.00
Uncertainty
Medium
1-Star Price
$413.60
5-Star Price
$157.50
Economic Moat
Hvzs
Capital Allocation
Xwvpvyfml

Bulls Say, Bears Say

Bulls

Despite near-term normalization, UPS' US ground and express package delivery operations should enjoy positive longer-term tailwinds from e-commerce growth.

Bears

Freight diversions seen last year from the Teamsters' strike threat and lingering sluggish retail restocking will create year-over-year volume growth headwinds into the first half of 2024.

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Trading Information

Previous Close Price
$137.56
Day Range
$136.38–139.59
52-Week Range
$133.58–192.98
Bid/Ask
$137.01 / $137.70
Market Cap
$117.76 Bil
Volume/Avg
3.2 Mil / 3.9 Mil

Key Statistics

Price/Earnings (Normalized)
17.18
Price/Sales
1.32
Dividend Yield (Trailing)
4.72%
Dividend Yield (Forward)
4.74%
Total Yield
5.78%

Company Profile

As the world's largest parcel delivery company, UPS manages a massive fleet of more than 500 planes and 100,000 vehicles, along with many hundreds of sorting facilities, to deliver an average of about 22 million packages per day to residences and businesses across the globe. UPS' domestic US package operations generate around 64% of total revenue while international package makes up 20%. Air and ocean freight forwarding, truckload brokerage, and contract logistics make up the remainder. UPS is currently pursuing "strategic alternatives" for its truck brokerage unit, Coyote, which it acquired in 2015.
Sector
Industrials
Industry
Integrated Freight & Logistics
Stock Style Box
Large Value
Total Number of Employees
500,000
Website
https://www.ups.com

Competitors

Valuation

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Metric
UPS
DHL
CHRW
Price/Earnings (Normalized)
 17.1813.1928.06
Price/Book Value
 6.962.087.12
Price/Sales
 1.320.590.60
Price/Cash Flow
 10.575.9322.71
Price/Earnings
UPS
DHL
CHRW

Financial Strength

Metric
UPS
DHL
CHRW
Quick Ratio
 0.960.741.30
Current Ratio
 1.100.951.37
Interest Coverage
 10.587.2218.50
Quick Ratio
UPS
DHL
CHRW

Profitability

Metric
UPS
DHL
CHRW
Return on Assets (Normalized)
 9.78%5.51%7.18%
Return on Equity (Normalized)
 36.79%16.07%28.44%
Return on Invested Capital (Normalized)
 16.90%9.19%13.64%
Return on Assets
UPS
DHL
CHRW
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Integrated Freight & Logistics Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
FedEx Corp
FDX
DkcqltntCtvkps$61.0 Bil
 DHL Group
DPSTF
—Zkdcd$50.8 Bil
 DHL Group ADR
DHLGY
PzgxychSgcvkb$50.8 Bil
 ZTO Express (Cayman) Inc ADR
ZTO
GyzqssnwbSxcxb$19.4 Bil
 Expeditors International of Washington Inc
EXPD
BylwnvlstDrtbx$17.7 Bil
 JB Hunt Transport Services Inc
JBHT
SpgznpqZcvfzq$16.5 Bil
 C.H. Robinson Worldwide Inc
CHRW
NbpbhxcwtFbm$10.2 Bil
 Landstar System Inc
LSTR
WtmtnvxwwmCchps$6.4 Bil
 Hub Group Inc Class A
HUBG
MjvbzwtdWtftxw$2.7 Bil

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