United Parcel Service Inc.
Find Ratings ReportsUNITED PARCEL SERVICE INC's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. UNITED PARCEL SERVICE INC has weak liquidity. Currently, the Quick Ratio is 0.99 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 12.53% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 24917.0 | 27033.0 |
EBITDA ($mil) | 3666.0 | 4735.0 |
EBIT ($mil) | 2799.0 | 3847.0 |
Net Income ($mil) | 1605.0 | 3453.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 6072.0 | 7595.0 |
Total Assets ($mil) | 70857.0 | 71124.0 |
Total Debt ($mil) | 26729.0 | 23521.0 |
Equity ($mil) | 17306.0 | 19786.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 14.71 | 17.52 |
EBITDA Margin | 14.71 | 17.51 |
Operating Margin | 11.23 | 14.23 |
Sales Turnover | 1.28 | 1.41 |
Return on Assets | 9.46 | 16.23 |
Return on Equity | 38.76 | 58.36 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.1 | 1.22 |
Debt/Capital | 0.61 | 0.54 |
Interest Expense | 207.0 | 182.0 |
Interest Coverage | 13.52 | 21.14 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 852.8 | 858.8 |
Div / share | 1.62 | 1.52 |
EPS | 1.87 | 3.96 |
Book value / share | 20.29 | 23.04 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 4012908.0 | 3653131.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 18.07 for the Couriers and Messengers subsector and a discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 7.58 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 5.69. The current price-to-sales ratio is well below the S&P 500 average, but above the subsector average. Upon assessment of these and other key valuation criteria, UNITED PARCEL SERVICE INC proves to trade at a premium to investment alternatives.
Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
UPS 19.75 | Peers 18.07 | UPS 12.82 | Peers 10.56 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. UPS is trading at a valuation on par with its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. UPS is trading at a premium to its peers. |
|||||||||||||||||||||||
Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
UPS 15.78 | Peers 14.30 | UPS 2.97 | Peers 2.30 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. UPS is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. UPS trades at a significant premium to its peers. |
|||||||||||||||||||||||
Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
UPS 7.58 | Peers 5.69 | UPS -40.99 | Peers -14.82 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. UPS is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, UPS is expected to significantly trail its peers on the basis of its earnings growth rate. |
|||||||||||||||||||||||
Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
UPS 1.44 | Peers 1.18 | UPS -9.35 | Peers -8.31 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. UPS is trading at a premium to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. UPS significantly trails its peers on the basis of sales growth. |
|||||||||||||||||||||||