Inside the Numbers: United Parcel Service Inc (UPS)

byBob Simpson, Synchronicity Performance Consultants

August 24, 2016

1 minute read

Inside the Numbers: United Parcel Service Inc (UPS)

by Bob Simpson, Synchronicity Performance Consultants

United Parcel Service Inc. (UPS) is a package delivery organization less-than-truckload industry & provider of supply chain management solutions. It operates in three segments; U.S. Domestic Package, International Package and Supply Chain & Freight.

UPS has been consolidating in a trading range between roughly $95 and $112.45 since 2014 and is currently approaching all-time highs.

Let’s look inside the numbers:

Interesting Information

UPS' price earnings multiple has declined by 17.1% over the past year, which has resulted in much lower stock performance, compared to earnings growth. Over the past three years, the PE multiple has declined 80.0% while earnings have grown 259.4%. As a result, the total return price (including dividends) has grown by only 39.38% over the past three-years.

If EPS estimates are achieved and current PE ratio is maintained, UPS could trade in the $135 range by 2019. The current dividend yield is 2.78% and if earnings grow by 21.7% by 2019, the dividend will increase by approximately that percentage.

In The News

5 Ways UPS is Adjusting To The Economy
Watch Fedex and UPS as Brick-And Mortar Cracks Grow

Note: This is not a recommendation, just an analysis for educational purposes only. It is intended to highlight the capabilities of YCharts and teach subscribers and potential subscribers how to do research using this valuable tool.

Author

Bob Simpson, Synchronicity Performance Consultants

Bob Simpson, president and founder of Synchronicity has been involved, directly or indirectly in the industry since 1981. He has been a very successful financial advisor with Nesbitt Thomson Inc., a major Canadian financial institution. Between 1981 and 1989, he built a business with more than $120 million in assets under management and was one of the first Canadian advisors to transition from a solo to an ensemble model. From 1989 to 1993, he was Vice President Development and portfolio manager for a publicly traded insurance company and president of an investment counseling firm. From 1993 to 1998, he held several positions including fixed income strategist, manager of training and development, branch manager and Senior Vice President National Sales for Midland Walwyn Capital Inc., Canada’s largest independent financial services firm, which was sold to Merrill Lynch in 1998. In 1998, he founded Synchronicity Business Coaching Inc. In 1999, he was trained and certified by Michael Gerber, author of the best-selling business book, The E-Myth Revisited and his firm E-Myth Worldwide. He has subsequently adapted many of Gerber’s concepts in the development of Sustainable Growth, a program for financial services entrepreneurs.