Skip to Content
Morningstar

United Parcel Service Inc Class B UPS

Morningstar Rating
Unlock
Stock XNYS Rating as of
$145.36 +2.59 (1.81%)
View Full Chart
As of Delayed Price Pre-Open: $151.48 +6.11
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

FedEx: FedEx and the USPS Won't Renew Airlift Contract; UPS Wins a Portion

Matthew Young

FedEx announced that after a period of "extensive discussions," it will not renew its contract with the United States Postal Service, or USPS, which will expire on Sept. 29. Recall that for roughly the past 20 years, FedEx express has provided airlift transportation for several USPS products within the US, including first class mail and priority mail express. Overall, this does not come as a surprise given management's commentary in recent quarters, which (as we heard it) seemed to hint that material service and pricing changes were necessary in order for a deal to be mutually beneficial and work effectively.

Read Full Report

Price vs Fair Value

View History
UPS is trading at a 8% discount.
Price
$145.36
Fair Value
$672.00
Uncertainty
Medium
1-Star Price
$532.20
5-Star Price
$667.70
Economic Moat
Yxqkh
Capital Allocation
Ldbflmctm

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.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if UPS is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
$142.77
Day Range
$142.56–146.07
52-Week Range
$133.68–197.31
Bid/Ask
$150.50 / $152.00
Market Cap
$124.01 Bil
Volume/Avg
7,927 / 4.3 Mil

Key Statistics

Price/Earnings (Normalized)
16.27
Price/Sales
1.35
Dividend Yield (Trailing)
4.55%
Dividend Yield (Forward)
4.57%
Total Yield
6.19%

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

View More
Metric
UPS
DHL
FDX
Price/Earnings (Normalized)
 16.2713.0115.58
Price/Book Value
 7.052.032.52
Price/Sales
 1.350.570.78
Price/Cash Flow
 11.585.805.72
Price/Earnings
UPS
DHL
FDX

Financial Strength

Metric
UPS
DHL
FDX
Quick Ratio
 0.980.741.17
Current Ratio
 1.100.951.31
Interest Coverage
 11.927.2216.46
Quick Ratio
UPS
DHL
FDX

Profitability

Metric
UPS
DHL
FDX
Return on Assets (Normalized)
 10.65%5.51%5.74%
Return on Equity (Normalized)
 39.23%16.07%19.12%
Return on Invested Capital (Normalized)
 18.27%9.19%8.22%
Return on Assets
UPS
DHL
FDX
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Integrated Freight & Logistics Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
FDX
FedEx CorpXtzpjldcSlwqmyx$65.7 Bil
DPSTF
DHL Group—Gsqxbff$48.6 Bil
DHLGY
DHL Group ADRJhprtnnsqSnpmj$48.6 Bil
JBHT
JB Hunt Transport Services IncGqszpcrCybsxx$17.3 Bil
EXPD
Expeditors International of Washington IncJrtcgtgwmSyxl$16.3 Bil
ZTO
ZTO Express (Cayman) Inc ADRNdpdjngvfrMkkwbdk$16.0 Bil
CHRW
C.H. Robinson Worldwide IncPfpmbhjfvXjr$8.2 Bil
LSTR
Landstar System IncRjgkgqcfsHpss$6.1 Bil
HUBG
Hub Group Inc Class AWntvkmzmJvwnkm$2.4 Bil

Sponsor Center