ScoreWhy is United Parcel Service, Inc. ?
1
High Management Efficiency with a high ROCE of 37.33%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.07 times
3
High Debt company with Weak Long Term Fundamental Strength
- OPERATING CASH FLOW(Y) Lowest at USD 7,479 MM
- DEBT-EQUITY RATIO (HY) Highest at 143.64 %
- NET SALES(Q) Lowest at USD 21,217 MM
4
With ROCE of 26.99%, it has a very attractive valuation with a 3.09 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -22.18%, its profits have fallen by -3.9%
- At the current price, the company has a high dividend yield of 675.1
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -22.18% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is United Parcel Service, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
United Parcel Service, Inc.
19.65%
-0.82
33.04%
S&P 500
21.51%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.98%
EBIT Growth (5y)
1.17%
EBIT to Interest (avg)
14.39
Debt to EBITDA (avg)
1.07
Net Debt to Equity (avg)
1.06
Sales to Capital Employed (avg)
2.29
Tax Ratio
21.17%
Dividend Payout Ratio
100.07%
Pledged Shares
0
Institutional Holding
73.00%
ROCE (avg)
37.33%
ROE (avg)
56.34%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
4.96
EV to EBIT
11.66
EV to EBITDA
8.09
EV to Capital Employed
2.86
EV to Sales
1.11
PEG Ratio
NA
Dividend Yield
524.92%
ROCE (Latest)
24.52%
ROE (Latest)
37.59%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 231.05%
-21What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 702.21
RAW MATERIAL COST(Y)
Grown by 29.48% (YoY
CASH AND EQV(HY)
Lowest at USD 10,455 MM
DEBT-EQUITY RATIO
(HY)
Highest at 159.42 %
OPERATING PROFIT(Q)
Lowest at USD 1,910 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 8.36 %
PRE-TAX PROFIT(Q)
Lowest at USD 761 MM
NET PROFIT(Q)
Lowest at USD 604 MM
EPS(Q)
Lowest at USD 0.71
Here's what is working for United Parcel Service, Inc.
Dividend Payout Ratio
Highest at 231.05% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for United Parcel Service, Inc.
Pre-Tax Profit
At USD 761 MM has Fallen at -56.36%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 604 MM has Fallen at -55.14%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest Coverage Ratio
Lowest at 702.21
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at USD 1,910 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 8.36 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 761 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 604 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.71
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Cash and Eqv
Lowest at USD 10,455 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 159.42 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 29.48% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at USD 0.14 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
