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United Parcel Service

DB:UPAB
Snowflake Description

Established dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
UPAB
DB
$103B
Market Cap
  1. Home
  2. DE
  3. Transportation
Company description

United Parcel Service, Inc. provides letter and package delivery, specialized transportation, logistics, and financial services. The last earnings update was 22 days ago. More info.


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UPAB Share Price and Events
7 Day Returns
-2.6%
DB:UPAB
-0%
Europe Logistics
-0.5%
DE Market
1 Year Returns
13.7%
DB:UPAB
19.4%
Europe Logistics
12.2%
DE Market
UPAB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
United Parcel Service (UPAB) -2.6% 3.1% 4% 13.7% -1.3% 25.6%
Europe Logistics -0% 9.7% 12.5% 19.4% 26.3% 35.2%
DE Market -0.5% 4.4% 11.1% 12.2% 13.8% 16.6%
1 Year Return vs Industry and Market
  • UPAB underperformed the Logistics industry which returned 19.4% over the past year.
  • UPAB outperformed the Market in Germany which returned 12.2% over the past year.
Price Volatility
UPAB
Industry
5yr Volatility vs Market

Value

 Is United Parcel Service undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of United Parcel Service to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for United Parcel Service.

DB:UPAB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 25 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:UPAB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Logistics Unlevered Beta Simply Wall St/ S&P Global 1
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.996 (1 + (1- 21%) (25.61%))
1.132
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.132 * 5.96%)
6.98%

Discounted Cash Flow Calculation for DB:UPAB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for United Parcel Service is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:UPAB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.98%)
2020 4,540.25 Analyst x8 4,244.17
2021 5,341.25 Analyst x4 4,667.33
2022 5,465.00 Analyst x1 4,464.04
2023 5,915.00 Analyst x1 4,516.53
2024 6,220.48 Est @ 5.16% 4,440.04
2025 6,449.62 Est @ 3.68% 4,303.38
2026 6,620.34 Est @ 2.65% 4,129.22
2027 6,747.53 Est @ 1.92% 3,934.10
2028 6,842.89 Est @ 1.41% 3,729.52
2029 6,915.27 Est @ 1.06% 3,523.18
Present value of next 10 years cash flows $41,951.00
DB:UPAB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $6,915.27 × (1 + 0.23%) ÷ (6.98% – 0.23%)
$102,708.46
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $102,708.46 ÷ (1 + 6.98%)10
$52,327.74
DB:UPAB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $41,951.00 + $52,327.74
$94,278.74
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $94,278.74 / 857.82
$109.9
DB:UPAB Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:UPAB represents 0.89945x of NYSE:UPS
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89945x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 109.90 x 0.89945
€98.85
Value per share (EUR) From above. €98.85
Current discount Discount to share price of €108.42
= -1 x (€108.42 - €98.85) / €98.85
-9.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of United Parcel Service is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for United Parcel Service's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are United Parcel Service's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:UPAB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $5.78
NYSE:UPS Share Price ** NYSE (2019-11-20) in USD $120.54
Europe Logistics Industry PE Ratio Median Figure of 24 Publicly-Listed Logistics Companies 16.43x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 19.86x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of United Parcel Service.

DB:UPAB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:UPS Share Price ÷ EPS (both in USD)

= 120.54 ÷ 5.78

20.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • United Parcel Service is overvalued based on earnings compared to the Europe Logistics industry average.
  • United Parcel Service is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does United Parcel Service's expected growth come at a high price?
Raw Data
DB:UPAB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts
8.1%per year
Europe Logistics Industry PEG Ratio Median Figure of 14 Publicly-Listed Logistics Companies 1.74x
Germany Market PEG Ratio Median Figure of 259 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

DB:UPAB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.86x ÷ 8.1%

2.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • United Parcel Service is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on United Parcel Service's assets?
Raw Data
DB:UPAB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $6.48
NYSE:UPS Share Price * NYSE (2019-11-20) in USD $120.54
Europe Logistics Industry PB Ratio Median Figure of 28 Publicly-Listed Logistics Companies 2.51x
Germany Market PB Ratio Median Figure of 578 Publicly-Listed Companies 1.87x
DB:UPAB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:UPS Share Price ÷ Book Value per Share (both in USD)

= 120.54 ÷ 6.48

18.61x

* Primary Listing of United Parcel Service.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • United Parcel Service is overvalued based on assets compared to the Europe Logistics industry average.
X
Value checks
We assess United Parcel Service's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Logistics industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Logistics industry average (and greater than 0)? (1 check)
  5. United Parcel Service has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is United Parcel Service expected to perform in the next 1 to 3 years based on estimates from 25 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is United Parcel Service expected to grow at an attractive rate?
  • United Parcel Service's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • United Parcel Service's earnings growth is positive but not above the Germany market average.
  • United Parcel Service's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:UPAB Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:UPAB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts 8.1%
DB:UPAB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts 4.8%
Europe Logistics Industry Earnings Growth Rate Market Cap Weighted Average 12.7%
Europe Logistics Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.9%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:UPAB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:UPAB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 89,815 13,613 8,564 3
2022-12-31 85,660 12,772 7,979 3
2021-12-31 81,619 11,851 7,496 12
2020-12-31 77,600 10,721 7,003 25
2019-12-31 74,187 9,181 6,433 24
2019-11-20
DB:UPAB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 73,374 8,982 4,999
2019-06-30 72,500 9,718 4,757
2019-03-31 71,908 10,921 4,557
2018-12-31 71,861 12,711 4,791
2018-09-30 70,988 6,483 5,434
2018-06-30 69,717 6,058 5,185
2018-03-31 68,188 5,307 5,084
2017-12-31 66,585 1,479 4,905
2017-09-30 64,541 5,528 3,570
2017-06-30 63,296 4,401 3,581
2017-03-31 61,998 4,042 3,466
2016-12-31 61,610 6,473 3,422

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • United Parcel Service's earnings are expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).
  • United Parcel Service's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:UPAB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below

All data from United Parcel Service Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:UPAB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 10.26 10.26 10.26 1.00
2022-12-31 9.56 9.56 9.56 1.00
2021-12-31 8.75 9.08 8.40 7.00
2020-12-31 8.11 8.62 7.85 16.00
2019-12-31 7.40 7.58 7.31 14.00
2019-11-20
DB:UPAB Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 5.78
2019-06-30 5.49
2019-03-31 5.26
2018-12-31 5.53
2018-09-30 6.27
2018-06-30 5.98
2018-03-31 5.85
2017-12-31 5.63
2017-09-30 4.09
2017-06-30 4.09
2017-03-31 3.94
2016-12-31 3.88

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • United Parcel Service is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess United Parcel Service's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
United Parcel Service has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has United Parcel Service performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare United Parcel Service's growth in the last year to its industry (Logistics).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • United Parcel Service's year on year earnings growth rate has been positive over the past 5 years.
  • United Parcel Service's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • United Parcel Service's 1-year earnings growth is negative, it can't be compared to the Europe Logistics industry average.
Earnings and Revenue History
United Parcel Service's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from United Parcel Service Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:UPAB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 73,374.00 4,999.00
2019-06-30 72,500.00 4,757.00
2019-03-31 71,908.00 4,557.00
2018-12-31 71,861.00 4,791.00
2018-09-30 70,988.00 5,434.00
2018-06-30 69,717.00 5,185.00
2018-03-31 68,188.00 5,084.00
2017-12-31 66,585.00 4,905.00
2017-09-30 64,541.00 3,570.00
2017-06-30 63,296.00 3,581.00
2017-03-31 61,998.00 3,466.00
2016-12-31 61,610.00 3,422.00
2016-09-30 60,029.00 5,001.00
2016-06-30 59,338.00 4,988.00
2016-03-31 58,804.00 4,949.00
2015-12-31 58,363.00 4,844.00
2015-09-30 58,204.00 3,966.00
2015-06-30 58,257.00 3,923.00
2015-03-31 58,430.00 3,147.00
2014-12-31 58,232.00 3,032.00
2014-09-30 57,313.00 3,746.00
2014-06-30 56,544.00 3,629.00
2014-03-31 55,783.00 4,246.00
2013-12-31 55,438.00 4,372.00
2013-09-30 55,033.00 1,457.00
2013-06-30 54,583.00 829.00
2013-03-31 54,425.00 874.00
2012-12-31 54,127.00 807.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst United Parcel Service made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • United Parcel Service used its assets more efficiently than the Europe Logistics industry average last year based on Return on Assets.
  • United Parcel Service's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess United Parcel Service's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Logistics industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
United Parcel Service has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is United Parcel Service's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up United Parcel Service's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • United Parcel Service is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • United Parcel Service's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of United Parcel Service's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from United Parcel Service Company Filings, last reported 1 month ago.

DB:UPAB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 5,574.00 23,451.00 4,541.00
2019-06-30 4,423.00 22,948.00 4,801.00
2019-03-31 3,485.00 22,667.00 5,111.00
2018-12-31 3,037.00 22,243.00 5,036.00
2018-09-30 3,126.00 23,366.00 4,845.00
2018-06-30 2,356.00 22,771.00 4,940.00
2018-03-31 1,375.00 23,143.00 4,209.00
2017-12-31 1,024.00 24,317.00 4,070.00
2017-09-30 1,539.00 18,933.00 4,465.00
2017-06-30 1,274.00 18,099.00 4,611.00
2017-03-31 560.00 17,269.00 3,729.00
2016-12-31 429.00 16,104.00 4,567.00
2016-09-30 2,767.00 15,372.00 5,358.00
2016-06-30 2,650.00 14,419.00 5,672.00
2016-03-31 2,480.00 15,485.00 6,267.00
2015-12-31 2,491.00 14,366.00 4,726.00
2015-09-30 1,948.00 14,639.00 5,689.00
2015-06-30 1,968.00 13,194.00 6,222.00
2015-03-31 1,847.00 13,138.00 6,417.00
2014-12-31 2,158.00 10,822.00 3,283.00
2014-09-30 5,644.00 12,312.00 5,571.00
2014-06-30 5,585.00 11,899.00 4,599.00
2014-03-31 6,262.00 12,161.00 7,035.00
2013-12-31 6,488.00 10,980.00 5,252.00
2013-09-30 3,655.00 12,680.00 6,664.00
2013-06-30 3,630.00 12,007.00 6,213.00
2013-03-31 4,043.00 12,718.00 7,332.00
2012-12-31 4,733.00 12,925.00 7,925.00
  • United Parcel Service's level of debt (420.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (219.3% vs 420.7% today).
  • Debt is well covered by operating cash flow (38.3%, greater than 20% of total debt).
  • United Parcel Service earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess United Parcel Service's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. United Parcel Service has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is United Parcel Service's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.19%
Current annual income from United Parcel Service dividends. Estimated to be 3.42% next year.
If you bought €2,000 of United Parcel Service shares you are expected to receive €64 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • United Parcel Service's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.35%).
  • United Parcel Service's dividend is below the markets top 25% of dividend payers in Germany (3.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:UPAB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
Europe Logistics Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.3%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:UPAB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 5.09 3.00
2022-12-31 4.72 3.00
2021-12-31 4.35 12.00
2020-12-31 4.03 19.00
2019-12-31 3.83 19.00
2019-11-20
DB:UPAB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-11-07 3.840 3.119
2019-08-08 3.840 3.265
2019-05-09 3.840 3.722
2019-02-15 3.840 3.496
2018-11-08 3.640 3.520
2018-08-09 3.640 3.110
2018-05-10 3.640 3.187
2018-02-08 3.640 3.377
2017-11-02 3.320 2.757
2017-08-03 3.320 2.853
2017-05-04 3.320 3.057
2017-02-08 3.320 3.118
2016-11-03 3.120 2.732
2016-08-05 3.120 2.869
2016-05-05 3.120 2.953
2016-02-10 3.120 3.051
2015-11-05 2.920 2.993
2015-08-06 2.920 2.898
2015-05-07 2.920 2.936
2015-02-11 2.920 2.942
2014-11-06 2.680 2.491
2014-08-07 2.680 2.718
2014-05-08 2.680 2.630
2014-02-13 2.680 2.754
2013-11-07 2.480 2.476
2013-08-08 2.480 2.741
2013-05-02 2.480 2.848
2013-02-14 2.480 2.952
2012-11-08 2.280 3.000
2012-08-09 2.280 3.097
2012-05-03 2.280 2.976
2012-02-09 2.280 2.907
2011-11-03 2.080 2.867
2011-08-11 2.080 3.148
2011-05-05 2.080 2.921
2011-02-03 2.080 2.827
2010-11-04 1.880 2.631
2010-08-05 1.880 2.807
2010-05-06 1.880 3.024
2010-02-04 1.880 3.003
2009-11-05 1.800 3.084
2009-08-13 1.800 3.244
2009-05-07 1.800 3.506
2009-02-11 1.800 3.805

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of United Parcel Service's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess United Parcel Service's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can United Parcel Service afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. United Parcel Service has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of United Parcel Service's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Abney
COMPENSATION $15,060,876
AGE 64
TENURE AS CEO 5.2 years
CEO Bio

Mr. David P. Abney has been a Member of Board of Directors at Macy’s, Inc since October 25, 2018. Mr. Abney has been the Chief Executive Officer of United Parcel Service, Inc. and United Parcel Service of America, Inc. since September 1, 2014. Mr. Abney serves as the Chief Executive Officer of UPS Supply Chain Solutions, Inc. He served as the Chief Operating Officer of United Parcel Service of America, Inc. and United Parcel Service, Inc. from January 8, 2007 to September 1, 2014. Mr. Abney served as the Chief Operating Officer of UPS International at UPS Airlines since January 8, 2007 until 2014. He served as Senior Vice President of United Parcel Service, Inc. He served as Senior Vice President of Global Transportation Services at United Parcel Service, Inc. He served as the President of Airlines at United Parcel Service, Inc. from 2007 to 2008. He served as the President of UPS International, Inc. from 2003 to January 8, 2007. He served as the President of International Operations at UPS Supply Chain Solutions Inc. He served as the President of UPS International Inc., from 2003 to January 8, 2007 and as UPS/Fritz Companies Integration Manager from 2001 to 2002. His international experience includes leading the logistics and freight divisions in Canada and Latin America as well as heading global freight forwarding and customs brokerage. He began his career with UPS Airlines in 1974, served as a part-time package loader and in various positions of increasing responsibility. He served as the President of SonicAir. He served as Senior Vice President of United Parcel Service, Inc., since 2003. He has worked in U.S. package operations and directed freight and logistics operations in the U.S., Canada and Latin America at UPS Airlines. He has been the Chairman of United Parcel Service, Inc. since February 10, 2016. He has been the Chairman of United Parcel Service of America, Inc. since June 2016. He has been a Non-Independent Director of United Parcel Service, Inc. since September 1, 2014. Mr. Abney serves as a Director of Engage Ventures, LLC. He served as an Independent Director of Johnson Controls International plc from September 6, 2016 to March 7, 2018. Mr. Abney serves as a Director of Allied Waste Inc. He serves on the Board of Directors of the Air Couriers Conference of America. He serves as a Board Member of the Southern Center for International Studies, the Coalition of Service Industries and Cargo Network Services, a subsidiary of the International Air Transport Association. He serves as a Trustee of the UPS Foundation, a Trustee of the Annie E. Casey Foundation and is a member of the World Affairs Council. He served as an Independent Director of Johnson Controls Inc., since September 2009 until September 6, 2016. He served as an Independent Director of Allied Waste Industries, Inc. since April 7, 2008. Abney serves on the board of Catalyst, an organization working to accelerate and advance women, including women of color, into senior leadership and board positions, and was elected as the 2019 Chairman of the Metro Atlanta Chamber of Commerce. He was honored with the Professionalism in Services/Support Management Award by the International Association of Services Management for demonstrating exemplary managerial characteristics. Mr. Abney holds a Bachelor's degree in Business Administration from Delta State University.

CEO Compensation
  • David's compensation has been consistent with company performance over the past year, both up more than 20%.
  • David's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the United Parcel Service management team in years:

2.1
Average Tenure
56
Average Age
  • The tenure for the United Parcel Service management team is about average.
Management Team

David Abney

TITLE
Chairman & CEO
COMPENSATION
$15M
AGE
64
TENURE
5.2 yrs

Jim Barber

TITLE
Chief Operating Officer
COMPENSATION
$7M
AGE
59
TENURE
1.7 yrs

Kevin Warren

TITLE
Senior VP & Chief Marketing Officer
COMPENSATION
$5M
AGE
56
TENURE
1.4 yrs

Rich Peretz

TITLE
Executive Officer
COMPENSATION
$5M
AGE
57
TENURE
0.2 yrs

Scott Price

TITLE
Senior VP and Chief Strategy & Transformation Officer
COMPENSATION
$8M
AGE
56
TENURE
1.7 yrs

Brian Newman

TITLE
Chief Financial Officer
TENURE
0.2 yrs

Juan Perez

TITLE
Senior VP and Chief Information & Engineering Officer
AGE
52
TENURE
2.6 yrs

Scott Childress

TITLE
VP & Investor Relations Officer
TENURE
3.6 yrs

Norm Brothers

TITLE
Senior VP
AGE
51
TENURE
3.8 yrs

Kate Gutmann

TITLE
Senior VP and Chief Sales & Solutions Officer
AGE
50
TENURE
5.8 yrs
Board of Directors Tenure

Average tenure and age of the United Parcel Service board of directors in years:

8.3
Average Tenure
63
Average Age
  • The tenure for the United Parcel Service board of directors is about average.
Board of Directors

David Abney

TITLE
Chairman & CEO
COMPENSATION
$15M
AGE
64
TENURE
3.8 yrs

Ann Livermore

TITLE
Independent Director
COMPENSATION
$295K
AGE
60
TENURE
22.8 yrs

Carol Tomé

TITLE
Independent Director
COMPENSATION
$300K
AGE
62
TENURE
16.8 yrs

Bill Johnson

TITLE
Lead Independent Director
COMPENSATION
$320K
AGE
70
TENURE
3.8 yrs

Rod Adkins

TITLE
Independent Director
COMPENSATION
$295K
AGE
60
TENURE
6.8 yrs

Mike Burns

TITLE
Independent Director
COMPENSATION
$275K
AGE
67
TENURE
14.3 yrs

Rudy Markham

TITLE
Independent Director
COMPENSATION
$275K
AGE
73
TENURE
12 yrs

Sandy Randt

TITLE
Independent Director
COMPENSATION
$275K
AGE
73
TENURE
9.3 yrs

Kevin M. Warsh

TITLE
Independent Director
COMPENSATION
$275K
AGE
49
TENURE
7.3 yrs

John Stankey

TITLE
Independent Director
COMPENSATION
$275K
AGE
56
TENURE
5.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess United Parcel Service's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. United Parcel Service has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

United Parcel Service, Inc. provides letter and package delivery, specialized transportation, logistics, and financial services. It operates through three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services in Europe, the Asia Pacific, Canada and Latin America, the Indian sub-continent, the Middle East, and Africa. This segment offers guaranteed time-definite express options, including Express Plus, Express, and Express Saver. The Supply Chain & Freight segment provides international air and ocean freight forwarding, customs brokerage, distribution and post-sales, and mail and consulting services in approximately 220 countries and territories; and less-than-truckload and truckload services to customers in North America. This segment also offers shipping, visibility, and billing technologies; and insurance, financing, and payment services. The company operates a fleet of approximately 123,000 package cars, vans, tractors, and motorcycles; and owns 47,000 containers that are used to transport cargo in its aircraft. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.

Details
Name: United Parcel Service, Inc.
UPAB
Exchange: DB
Founded: 1907
$93,444,339,115
857,822,686
Website: http://www.ups.com
Address: United Parcel Service, Inc.
55 Glenlake Parkway, N.E.,
Atlanta,
Georgia, 30328,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE UPS Class B Common Stock New York Stock Exchange US USD 10. Nov 1999
DB UPAB Class B Common Stock Deutsche Boerse AG DE EUR 10. Nov 1999
XTRA UPAB Class B Common Stock XETRA Trading Platform DE EUR 10. Nov 1999
LSE 0R08 Class B Common Stock London Stock Exchange GB USD 10. Nov 1999
SWX UPS Class B Common Stock SIX Swiss Exchange CH CHF 10. Nov 1999
WBAG UPSI Class B Common Stock Wiener Boerse AG AT EUR 10. Nov 1999
SNSE UPS Class B Common Stock Santiago Stock Exchange CL USD 10. Nov 1999
BMV UPS * Class B Common Stock Bolsa Mexicana de Valores MX MXN 10. Nov 1999
BOVESPA UPSS34 BDR EACH REPR 0.25 COM 'B' USD0.01 Bolsa de Valores de Sao Paulo BR BRL 24. Aug 2012
Number of employees
Current staff
Staff numbers
364,575
United Parcel Service employees.
Industry
Air Freight and Logistics
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/20 20:36
End of day share price update: 2019/11/20 00:00
Last estimates confirmation: 2019/11/13
Last earnings filing: 2019/10/29
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.