United Parcel Service Inc

Industrials
Trucking Freight/Courier Services
www.ups.com

Earnings Score
Moat Score
Safety Score

Market Cap $113.74B
PE 20
Debt $21.93B
Cash $5.86B
EV $129.82B
FCF $4.36B

Earnings

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Sales & Net Margins

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Earnings	$5.67B
EBIT	$8.02B
ROE	34%
ROA	12%
FCF	$4.36B
Equity	$16.88B
Growth Stability	28%
PE	20.07
PEG	1.23
PB	6.74
P/FCF	26.1
P/S	1.25
Price/Cash	0.05
Debt/Equity	1.3
Debt/FCF	5.03
Net Margins	6%
Op. Margins	9%
Earnings CAGR	10%
Sales Growth YoY	6%
Sales Growth QoQ	2%
Sales CAGR	7%
FCF CAGR	19%
Equity CAGR	39%
Earnings Stability	0.29
Earnings Growth YoY	37%
Earnings Growth QoQ	9%
Earnings CAGR 5Y	16%

Sales CAGR 5Y	4%
FCF CAGR 5Y	5%
Equity CAGR 5Y	56%
Earnings CAGR 3Y	-4%
Sales CAGR 3Y	-4%
FCF CAGR 3Y	-32%
Equity CAGR 3Y	4%
Market Cap	$113.74B
Revenue	$90.69B
Dividend Yield	5%
Payout Ratio	95%
Assets	$68.26B
Total Debt	$21.93B
Cash	$5.86B
Shares Outstanding	855M
EV	129.82B
Earnings Score	15%
Moat Score	91%
Safety Score	54%
Final Score	53%
Working Capital	2.18B
Current Ratio	1.14
Shares Growth 3y	-1%
Equity Growth QoQ	-1%
Equity Growth YoY	-12%

Assets & ROA

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Stockholders Equity & ROE

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United Parcel Service, Inc. is a package delivery company and a provider of global supply chain management solutions. Its segments include U.S. Domestic Package and International Package. Its U.S. Domestic Package and International Package are together referred to as its global small package operations. Its global small package operations provide delivery services for express letters, documents, packages and palletized freight via air and ground services. The U.S. Domestic Package segment offers small package delivery services in the United States and offers a spectrum of United States domestic guaranteed air and ground package transportation services. The International Package segment consists of its small package operations in Europe, Asia Pacific, Canada, Latin America and Indian sub-continent, Middle East and Africa (ISMEA). Its other businesses include Supply Chain Solutions, which consists of its forwarding, truckload brokerage, logistics and distribution, and other businesses.

SEC Filings

Direct access to United Parcel Service Inc (UPS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does United Parcel Service Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of United Parcel Service Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 10%

Stability 29%

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United Parcel Service Inc Discounted Cash Flow

Fully customizable DCF calculator online for United Parcel Service Inc.

Years

Calculation mode

= $164B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$4.4B	$5.2B	$6.2B	$7.3B	$8.7B	$10B	$12B	$15B	$17B	$21B	$25B	$246B
DCF		$4.7B	$5.1B	$5.5B	$6B	$6.4B	$7B	$7.5B	$8.1B	$8.8B	$9.5B	$95B
Value	$164B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	8%	6%	7%	7%	6%	2%	13%	12%	7%	6%
ROA	-	14%	17%	14%	13%	12%	24%	21%	13%	12%
ROE	-	800%	477%	158%	135%	201%	90%	58%	39%	34%

Bad Net Margins (6.17%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	5.63	-7.55	3.97	12.69	5.4	2.22	2.36	4.99	5.03
Debt over Equity	6.97	46.05	27.48	8.41	8.73	40.77	1.69	1.11	1.46	1.3
Growth Stability	-	-	-	100%	100%	28%	100%	100%	78%	28%

Bad Debt/FCF ratio (5.03)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Neutral Debt/Equity ratio (1.3)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (28%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	4%	8%	9%	3%	14%	15%	3%	-9%	4%
Earnings YoY growth	-	-29%	43%	-2%	-7%	-70%	860%	-10%	-42%	16%
Equity YoY growth	-	-83%	140%	195%	8%	-80%	2K%	39%	-13%	56%
FCF YoY growth	-	-31%	-207%	-272%	-65%	123%	114%	-14%	-46%	5%