United Parcel Service IncFind Ratings Reports
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 ($mil)||16931.0||16054.0|
|Net Income ($mil)||-239.0||1331.0|
|Balance Sheet||Q4 FY16||Q4 FY15|
|Cash & Equiv. ($mil)||4567.0||4726.0|
|Total Assets ($mil)||40377.0||38311.0|
|Total Debt ($mil)||16075.0||14334.0|
|Profitability||Q4 FY16||Q4 FY15|
|Gross Profit Margin||0.84||16.15|
|Return on Assets||8.49||12.64|
|Return on Equity||847.16||196.11|
|Debt||Q4 FY16||Q4 FY15|
|Share Data||Q4 FY16||Q4 FY15|
|Shares outstanding (mil)||868.0||886.0|
|Div / share||0.78||0.73|
|Book value / share||0.47||2.79|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3288134.0||2586210.0|
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.
|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.
|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.
|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.
|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