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United Parcel Service Inc Class B UPS

Morningstar Rating
$147.77 −0.50 (0.34%)
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Company Report

UPS Earnings: Firm Winning Back Domestic Volume Diversions, but 2024 Guidance Disappoints

UPS' fourth-quarter top line fell 8% year over year; slightly below our forecast because of a weaker-than-expected showing for international package volumes. Domestic volumes were mostly in line, as were overall segment yields (revenue per package). Relative to fourth-quarter 2022, lower revenue stems from continued package volume declines, the soft demand and pricing backdrop for truck brokerage (Coyote) and global forwarding, and lower fuel surcharges. That said, we believe core pricing remains positive.

Price vs Fair Value

UPS is trading at a 7% discount.
Price
$147.77
Fair Value
$358.00
Uncertainty
Medium
1-Star Price
$388.47
5-Star Price
$645.90
Economic Moat
Qsmh
Capital Allocation
Rrfflbys

Bulls Say, Bears Say

Bulls

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

Bears

Normalizing e-commerce trends, sluggish retail-sector restocking, and freight diversions (from the Teamsters strike threat) will create volume headwinds throughout 2023.

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News

Trading Information

Previous Close Price
$148.27
Day Range
$147.06148.37
52-Week Range
$133.68197.80
Bid/Ask
$147.47 / $147.71
Market Cap
$126.00 Bil
Volume/Avg
2.3 Mil / 3.7 Mil

Key Statistics

Price/Earnings (Normalized)
16.83
Price/Sales
1.40
Dividend Yield (Trailing)
4.39%
Dividend Yield (Forward)
4.41%
Total Yield
5.98%

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 25 million packages per day to residences and businesses across the globe. UPS' domestic U.S. 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.
Sector
Industrials
Industry
Integrated Freight & Logistics
Stock Style Box
Large Value
Total Number of Employees
500,000

Competitors

Valuation

Metric
UPS
CHRW
FDX
Price/Earnings (Normalized)
16.8323.1014.47
Price/Book Value
7.296.122.28
Price/Sales
1.400.510.70
Price/Cash Flow
11.9819.775.17
Price/Earnings
UPS
CHRW
FDX

Financial Strength

Metric
UPS
CHRW
FDX
Quick Ratio
0.981.321.22
Current Ratio
1.101.401.34
Interest Coverage
11.924.8814.92
Quick Ratio
UPS
CHRW
FDX

Profitability

Metric
UPS
CHRW
FDX
Return on Assets (Normalized)
10.65%7.18%5.63%
Return on Equity (Normalized)
39.23%28.44%19.07%
Return on Invested Capital (Normalized)
18.27%13.64%8.15%
Return on Assets
UPS
CHRW
FDX
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Integrated Freight & Logistics Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
FDX
FedEx CorpSwvbhf$61.1 Bil
DPSTF
DHL GroupWswtcq$55.4 Bil
DHLGY
DHL Group ADRCsbrcs$55.4 Bil
JBHT
JB Hunt Transport Services IncPvrjxx$21.4 Bil
EXPD
Expeditors International of Washington IncGttyv$17.1 Bil
ZTO
ZTO Express (Cayman) Inc ADRGtsgx$15.5 Bil
CHRW
C.H. Robinson Worldwide IncZkch$8.7 Bil
LSTR
Landstar System IncXfsh$6.8 Bil
HUBG
Hub Group Inc Class AJlqbgbp$2.8 Bil

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