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United Parcel Service Inc Class B UPS

Morningstar Rating
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Stock XNYS Rating as of
$152.29 +1.55 (1.03%)
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As of Delayed Price Post-Trading: $151.90 −0.30
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Company Report

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Higher-Than-Expected Shipment Diversions and Wage Hikes Pressing Domestic Margins

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 U.S. incumbents, while DHL Express leads in Europe. UPS has also raised its exposure to the asset-light third-party freight brokerage market, especially with its 2016 acquisition of truckload broker Coyote Logistics. 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 8% discount.
Price
$150.73
Fair Value
$375.00
Uncertainty
Medium
1-Star Price
$244.20
5-Star Price
$197.10
Economic Moat
Fbxxv
Capital Allocation
Krfrscyn

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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Trading Information

Previous Close Price
$150.74
Day Range
$151.45–153.46
52-Week Range
$133.68–197.80
Bid/Ask
$152.29 / $153.25
Market Cap
$129.74 Bil
Volume/Avg
3.0 Mil / 3.6 Mil

Key Statistics

Price/Earnings (Normalized)
15.18
Price/Sales
1.40
Dividend Yield
4.30%
Dividend Yield (Forward)
4.30%
Total Yield
6.87%

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
536,000
Website
https://www.ups.com

Competitors

Valuation

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Metric
UPS
DHL
CHRW
Price/Earnings (Normalized)
 15.1814.1321.97
Price/Book Value
 6.702.296.83
Price/Sales
 1.400.580.53
Price/Cash Flow
 11.165.8718.00
Price/Earnings
UPS
DHL
CHRW

Financial Strength

Metric
UPS
DHL
CHRW
Quick Ratio
 1.060.721.07
Current Ratio
 1.220.941.12
Interest Coverage
 15.449.825.20
Quick Ratio
UPS
DHL
CHRW

Profitability

Metric
UPS
DHL
CHRW
Return on Assets (Normalized)
 13.10%6.49%7.44%
Return on Equity (Normalized)
 48.27%19.14%30.00%
Return on Invested Capital (Normalized)
 22.35%10.64%14.25%
Return on Assets
UPS
DHL
CHRW

Integrated Freight & Logistics Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
FDX
FedEx CorpKrwmrn$63.7 Bil
DPSTF
DHL GroupBsgsblc$55.1 Bil
DHLGY
DHL Group ADRXhnyvxp$55.1 Bil
KHNGY
Kuehne + Nagel International AG ADRTzkhzz$34.4 Bil
JBHT
JB Hunt Transport Services IncBqgrtlr$18.6 Bil
EXPD
Expeditors International of Washington IncTbmp$17.4 Bil
CHRW
C.H. Robinson Worldwide IncTqc$9.6 Bil
LSTR
Landstar System IncRrnhh$6.2 Bil
HUBG
Hub Group Inc Class ANfgjfkz$2.4 Bil