United Parcel Service Inc

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UPS : NYSE : Services
$108.86 up 1.2 | 1.2%
Today's Range: 105.58 - 109.28
Avg. Daily Volume: 3385400.0
04/27/17 - 3:59 PM ET

Financial Analysis


UNITED PARCEL SERVICE INC's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. UNITED PARCEL SERVICE INC has average liquidity. Currently, the Quick Ratio is 1.05 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 significantly decreased by 83.60% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)16931.016054.0
EBITDA ($mil)143.02592.0
EBIT ($mil)-420.02051.0
Net Income ($mil)-239.01331.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)4567.04726.0
Total Assets ($mil)40377.038311.0
Total Debt ($mil)16075.014334.0
Equity ($mil)405.02470.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin0.8416.15
EBITDA Margin0.8416.14
Operating Margin-2.4812.78
Sales Turnover1.511.52
Return on Assets8.4912.64
Return on Equity847.16196.11
Debt Q4 FY16 Q4 FY15
Current Ratio1.181.23
Debt/Capital0.980.85
Interest Expense105.088.0
Interest Coverage-4.023.31


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)868.0886.0
Div / share0.780.73
EPS-0.271.48
Book value / share0.472.79
Institutional Own % n/a n/a
Avg Daily Volume3288134.02586210.0

Valuation


HOLD. The current P/E ratio indicates a discount compared to an average of 33.45 for the Air Freight & Logistics industry and a premium compared to the S&P 500 average of 24.92. For additional comparison, its price-to-book ratio of 226.22 indicates a significant premium versus the S&P 500 average of 2.99 and a significant premium versus the industry average of 101.96. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. The valuation analysis reveals that, UNITED PARCEL SERVICE INC seems to be trading at a discount 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 27.27 Peers 33.45   UPS 14.15 Peers 14.12

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

UPS is trading at a discount to 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 16.44 Peers 17.14   UPS 0.51 Peers 1.38

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.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UPS 226.22 Peers 101.96   UPS -27.53 Peers 23.01

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
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UPS 1.50 Peers 1.80   UPS 4.35 Peers 9.97

Discount. 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 discount to its industry on this measurement.

 

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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