Now trading at a price of $136.87, United Parcel Service has moved 2.0% so far today.
United Parcel Service returned losses of -21.7% last year, with its stock price reaching a high of $192.98 and a low of $132.9. Over the same period, the stock underperformed the S&P 500 index by -46.9%. AThe company's 50-day average price was $143.24. United Parcel Service, Inc., a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. Based in Atlanta, GA, the Large-Cap Consumer Discretionary company has 500,000 full time employees. United Parcel Service has offered a 4.8% dividend yield over the last 12 months.
A Positive EPS Growth Rate but Slimmer Gross Margins than the Industry Average of 42.5%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $71,861 | $74,094 | $84,628 | $97,287 | $100,338 | $90,958 |
| Gross Margins | 10% | 11% | 9% | 13% | 13% | 10% |
| Net Margins | 7% | 6% | 2% | 13% | 12% | 7% |
| Net Income (M) | $4,791 | $4,440 | $1,343 | $12,890 | $11,548 | $6,708 |
| Net Interest Expense (M) | $605 | $653 | $701 | $694 | $704 | $785 |
| Depreciation & Amort. (M) | $2,207 | $2,360 | $2,698 | $2,953 | $3,188 | $3,366 |
| Diluted Shares (M) | 870 | 869 | 871 | 878 | 875 | 860 |
| Earnings Per Share | $5.51 | $5.11 | $1.54 | $14.68 | $13.2 | $7.8 |
| EPS Growth | n/a | -7.26% | -69.86% | 853.25% | -10.08% | -40.91% |
| Avg. Price | $97.18 | $98.17 | $119.28 | $179.82 | $188.73 | $136.87 |
| P/E Ratio | 17.57 | 19.1 | 76.95 | 12.19 | 14.23 | 17.52 |
| Free Cash Flow (M) | $6,428 | $2,259 | $5,047 | $10,813 | $9,335 | $5,080 |
| CAPEX (M) | $6,283 | $6,380 | $5,412 | $4,194 | $4,769 | $5,158 |
| EV / EBITDA | 11.34 | 10.58 | 11.9 | 10.7 | 11.08 | 11.17 |
| Total Debt (M) | $25,154 | $28,311 | $27,095 | $22,945 | $21,777 | $25,346 |
| Net Debt / EBITDA | 2.27 | 2.27 | 2.04 | 0.81 | 0.99 | 1.77 |
| Current Ratio | 1.15 | 1.11 | 1.19 | 1.42 | 1.22 | 1.1 |
United Parcel Service has positive EPS growth, generally positive cash flows, and healthy leverage levels. However, the firm has slimmer gross margins than its peers. Finally, we note that United Parcel Service has growing revenues and decreasing reinvestment in the business and just enough current assets to cover current liabilities, as shown by its current ratio of 1.1.
an Increase in Expected Earnings Improves Its Value Outlook but Its Shares Are Expensive:
United Parcel Service has a trailing twelve month P/E ratio of 20.7, compared to an average of 22.06 for the Consumer Discretionary sector. Based on its EPS guidance of $9.72, the company has a forward P/E ratio of 14.7. The 8.4% compound average growth rate of United Parcel Service's historical and projected earnings per share yields a PEG ratio of 2.45. This suggests that these shares are overvalued. Furthermore, United Parcel Service is likely overvalued compared to the book value of its equity, since its P/B ratio of 6.92 is higher than the sector average of 3.18. The company's shares are currently trading 130.3% below their Graham number. Ultimately, United Parcel Service's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
United Parcel Service Has an Average Rating of Buy:
The 26 analysts following United Parcel Service have set target prices ranging from $100.0 to $205.0 per share, for an average of $160.66 with a buy rating. The company is trading -14.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
United Parcel Service has a very low short interest because 1.6% of the company's shares are sold short. Institutions own 71.9% of the company's shares, and the insider ownership rate stands at 0.01%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $8,685,242,256.
