United Parcel Service Inc

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UPS : NYSE : Services
$110.36 | %
Today's Range: 109.57 - 110.47
Avg. Daily Volume: 2,571,000
07/22/16 - 4:00 PM ET

Financial Analysis


UNITED PARCEL SERVICE INC's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. UNITED PARCEL SERVICE INC has average liquidity. Currently, the Quick Ratio is 1.13 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, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 34.33% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)14418.013977.0
EBITDA ($mil)2375.02179.0
EBIT ($mil)1823.01673.0
Net Income ($mil)1131.01026.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)6267.06417.0
Total Assets ($mil)39168.037332.0
Total Debt ($mil)15438.013104.0
Equity ($mil)2457.01829.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin16.4715.59
EBITDA Margin16.4715.58
Operating Margin12.6411.97
Sales Turnover1.51.57
Return on Assets12.638.42
Return on Equity201.42172.06
Debt Q1 FY16 Q1 FY15
Current Ratio1.251.31
Debt/Capital0.860.88
Interest Expense95.090.0
Interest Coverage19.1918.59


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)884.0901.0
Div / share0.780.73
EPS1.271.12
Book value / share2.782.03
Institutional Own % n/a n/a
Avg Daily Volume2595436.03100677.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.46 for the Air Freight & Logistics industry and a discount compared to the S&P 500 average of 25.03. For additional comparison, its price-to-book ratio of 40.12 indicates a significant premium versus the S&P 500 average of 2.80 and a significant premium versus the industry average of 30.73. The current price-to-sales ratio is below the S&P 500 average, but above the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
UPS 20.31 Peers 22.46   UPS 13.35 Peers 13.00

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 17.84 Peers 17.90   UPS 2.41 Peers 1.64

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 40.12 Peers 30.73   UPS 60.52 Peers 54.12

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 exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UPS 1.68 Peers 1.30   UPS 0.64 Peers 7.47

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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