United Parcel Service Inc - Class B
Exchange: NYSESector: IndustrialsIndustry: Integrated Freight & Logistics
United Parcel Service, Inc. (UPS) is a package delivery company. The Company delivers packages each business day for 1.1 million shipping customers to 7.7 million consignees in over 220 countries and territories. During the year ended December 31, 2012, it delivered an average of 16.3 million pieces per day worldwide, or a total of 4.1 billion packages. It serves the global market for logistics services, which include transportation, distribution, forwarding, ground, ocean and air freight, brokerage and financing. The Company has three segments: U.S. Domestic Package, International Package and Supply Chain & Freight. In February 2012, it acquired Kiala S.A.
Did you know?
A large-cap company with a $83.3B market cap.
Current Price
$98.18
+0.28%GoodMoat Value
$82.26
16.2% overvaluedProfile
Valuation (TTM)
Market Cap$83.29B
P/E14.95
EV$105.56B
P/B5.13
Shares Out848.39M
P/Sales0.94
Revenue$88.66B
EV/EBITDA8.89
United Parcel Service Inc - Class B (UPS) Stock Analysis
GoodMoat Analysis
UPS demonstrates a potentially durable competitive moat, scoring well on scale, brand, and switching costs. However, its current valuation appears unfavourable relative to the GoodMoat target, and recent financial performance shows concerning declines in revenue and margins.
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United Parcel Service is a global leader in logistics, offering package delivery, freight forwarding, and supply chain solutions. Applying the GoodMoat framework, UPS likely scores well in Moat Identification (Section 1) on criteria such as Scale Privilege (massive global network), Brand & Culture (high awareness), and Switching Costs (mission-critical for business clients). This suggests a potentially durable competitive advantage. However, the business currently faces headwinds, with revenue growth down -3.2% YoY and an operating margin of 8.9%. While its ROE of 34.3% is strong, the Debt/Equity ratio of 1.76 is elevated. The Decision Framework (Section 6) first requires a Moat Score ≥ 5, which UPS likely meets, allowing us to proceed to valuation. The current price of $98.37 is above the GoodMoat target of $82.26, indicating a negative margin of safety. This, combined with the revenue decline and margin compression (a High Confidence Red Flag), suggests the stock is in the 'With Caution' or 'Unfavourable' zone for a value investor. It is a high-quality business worth understanding, but the price does not currently offer a margin of safety.
Market Cap$83.29B
Current Price$98.18
P/E Ratio14.95
Forward P/E—
PEG Ratio3.77
EPS$6.56
Book Value$19.13
P/B Ratio5.13
UPS Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 13.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 22.7B
Revenue
74.1B
FY19
84.6B
FY20
97.3B
FY21
100.3B
FY22
91.0B
FY23
91.1B
FY24
88.7B
FY25
Net Income
4.4B
FY19
1.3B
FY20
12.9B
FY21
11.5B
FY22
6.7B
FY23
5.8B
FY24
5.6B
FY25
UPS 52-Week Range
$80.03
$118.32
50-Day MA: $106.60200-Day MA: $94.81
Did you know?
Profit margin stands at 6.3%.
United Parcel Service Inc - Class B (UPS) Financial Summary
United Parcel Service Inc - Class B (UPS) is a Industrials company in the Integrated Freight & Logistics industry, listed on NYSE. The stock currently trades at $98.18 with a market capitalization of $83.29B.
Key valuation metrics include a P/E ratio of 14.95, price-to-book ratio of 5.13, and EPS of $6.56. The company reports a profit margin of 6.3% and return on equity of 34.3%.
UPS Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $83.29B |
| P/E Ratio | 14.95 |
| EPS | $6.56 |
| P/B Ratio | 5.13 |
| P/S Ratio | 0.94 |
| EV/EBITDA | 8.89 |
| Dividend Yield | 6.48% |
| Profit Margin | 6.3% |
| Return on Equity | 34.3% |
| Debt/Equity | 1.76 |
UPS Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $74.09B | $4.44B |
| FY20 | $84.63B | $1.34B |
| FY21 | $97.29B | $12.89B |
| FY22 | $100.34B | $11.55B |
| FY23 | $90.96B | $6.71B |
| FY24 | $91.07B | $5.78B |
| FY25 | $88.66B | $5.57B |
United Parcel Service Inc - Class B (UPS) Valuation
Based on GoodMoat's DCF model, United Parcel Service Inc - Class B has a fair value estimate of $82.26. At the current price of $98.18, the stock appears 19.4% overvalued relative to our intrinsic value estimate.
UPS Quality Indicators
United Parcel Service Inc - Class B maintains a profit margin of 6.3% and an operating margin of 8.9%. Return on equity stands at 34.3%. The current ratio is 1.22. Debt-to-equity ratio is 1.76.
About United Parcel Service Inc - Class B
United Parcel Service, Inc. (UPS) is a package delivery company. The Company delivers packages each business day for 1.1 million shipping customers to 7.7 million consignees in over 220 countries and territories. During the year ended December 31, 2012, it delivered an average of 16.3 million pieces per day worldwide, or a total of 4.1 billion packages. It serves the global market for logistics services, which include transportation, distribution, forwarding, ground, ocean and air freight, brokerage and financing. The Company has three segments: U.S. Domestic Package, International Package and Supply Chain & Freight. In February 2012, it acquired Kiala S.A.
UPS Free Cash Flow
United Parcel Service Inc - Class B generated $4.76B in trailing twelve-month free cash flow, representing an FCF yield of 5.72%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
UPS Shares Outstanding
United Parcel Service Inc - Class B has 0.85 billion shares outstanding at a share price of $98.18, giving it a market capitalization of $83.29B.
UPS Recent Insider Trades
Recent insider transactions at United Parcel Service Inc - Class B include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Brothers Norman M. Jr (Chief Legal & Compliance Off) | SELL | 388 | $41779.84 |