Skip to Content

United Parcel Service Inc Class B UPS

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

UPS’ Q3 Benefits From Continued Residential Strength; Though Investments Pressure U.S. Margins

Matthew Young, CFA Equity Analyst

Analyst Note

| Matthew Young, CFA |

Small-package delivery giant UPS' third-quarter revenue increased 16% year over year. Similar to last quarter, the pandemic has accelerated the broader shift to e-commerce sales for retailers, materially boosting residential deliveries. Also, robust airfreight demand out of Asia remains a tailwind for the international package and global forwarding units. Total package yield was roughly flat on lower fuel surcharges and mix, but core pricing remains nicely positive as UPS’ pricing power is enjoying a boost from constrained industry capacity. B2B activity improved sequentially but is still dealing with soft industrial end markets.

Read Full Analysis

Company Profile

Business Description

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 U.S. package operations generate 61% of total revenue while international package makes up 20%. Less-than-truckload shipping, air and ocean freight forwarding, truckload brokerage, and contract logistics make up the remaining 19%.

Contact
55 Glenlake Parkway, N.E. Atlanta
Atlanta, GA, 30328
T +1 404 828-6000
Sector Industrials
Industry Integrated Freight & Logistics
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type High Yield
Employees 495,000

Related