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Stocks Under $10 with 50-100% upside potential - 14 days FREE!
United Parcel Service Inc (UPS)
UPS : NYSE : Services
$111.93 | %
Today's Range: 111.80 - 112.58
Avg. Daily Volume: 3,639,700
12/26/14 - 4:00 PM ET

Financial Analysis


UNITED PARCEL SERVICE INC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. UNITED PARCEL SERVICE INC has average liquidity. Currently, the Quick Ratio is 1.25 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 54.50% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)14290.013521.0
EBITDA ($mil)2439.02264.0
EBIT ($mil)1954.01804.0
Net Income ($mil)1214.01097.0


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)5571.06649.0
Total Assets ($mil)35906.037476.0
Total Debt ($mil)12251.012600.0
Equity ($mil)5627.03642.0


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin17.0716.74
EBITDA Margin17.0616.74
Operating Margin13.6713.34
Sales Turnover1.61.47
Return on Assets10.433.88
Return on Equity66.5740.0
Debt Q3 FY14 Q3 FY13
Current Ratio1.461.76
Debt/Capital0.690.78
Interest Expense89.096.0
Interest Coverage21.9618.79


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)908.0929.0
Div / share0.670.62
EPS1.321.16
Book value / share6.23.92
Institutional Own % n/a n/a
Avg Daily Volume3615746.02614466.0

Valuation


BUY. UNITED PARCEL SERVICE INC's P/E ratio indicates a premium compared to an average of 25.66 for the Air Freight & Logistics industry and a premium compared to the S&P 500 average of 20.19. For additional comparison, its price-to-book ratio of 18.14 indicates a significant premium versus the S&P 500 average of 2.79 and a significant premium versus the industry average of 11.23. The current price-to-sales ratio is similar to the S&P 500 average, but it is above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, UNITED PARCEL SERVICE INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
UPS 27.82 Peers 25.66   UPS 15.87 Peers 14.96

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

UPS is trading at a valuation on par with its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
UPS 19.90 Peers 21.90   UPS 3.67 Peers 2.41

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

UPS is trading at a valuation on par with 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
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UPS 18.14 Peers 11.23   UPS 162.33 Peers 96.64

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

UPS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UPS 1.78 Peers 1.42   UPS 4.14 Peers 8.49

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 significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

UPS significantly trails its peers on the basis of sales growth

 

 

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