United Parcel Service Inc

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UPS : NYSE : Services
$105.62 -2.1 | -1.95%
Today's Range: 105.24 - 106.83
Avg. Daily Volume: 2989100.0
02/22/17 - 4:01 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 82.63% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)16931.016054.0
EBITDA ($mil)135.02592.0
EBIT ($mil)-428.02051.0
Net Income ($mil)-239.01331.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)4567.04726.0
Total Assets ($mil)40401.038311.0
Total Debt ($mil)12394.014334.0
Equity ($mil)429.02470.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin0.816.15
EBITDA Margin0.7916.14
Operating Margin-2.5312.78
Sales Turnover1.511.52
Return on Assets8.4912.64
Return on Equity799.76196.11
Debt Q4 FY16 Q4 FY15
Current Ratio1.131.23
Debt/Capital0.970.85
Interest Expense0.088.0
Interest Coverage0.023.31


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)868.0886.0
Div / share0.780.73
EPS-0.271.48
Book value / share0.492.79
Institutional Own % n/a n/a
Avg Daily Volume2969022.02504886.0

Valuation


HOLD. UNITED PARCEL SERVICE INC's P/E ratio indicates a discount compared to an average of 29.90 for the Air Freight & Logistics industry and a value on par with the S&P 500 average of 26.35. For additional comparison, its price-to-book ratio of 216.96 indicates a significant premium versus the S&P 500 average of 2.94 and a significant premium versus the industry average of 98.73. The current price-to-sales ratio is well 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 27.71 Peers 29.90   UPS 14.38 Peers 14.43

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 16.62 Peers 18.63   UPS 2.47 Peers 2.15

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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UPS 216.96 Peers 98.73   UPS -27.53 Peers 12.86

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 1.53 Peers 1.23   UPS 4.35 Peers 11.98

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 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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