Best Dividend Stocks. Analyze the stocks with the best dividend, while also showing decent profitability and health.


UNITED PARCEL SERVICE-CL B

New York Stock Exchange, Inc. / Industrials / Air Freight & Logistics

Fundamental Rating

6

Overall UPS gets a fundamental rating of 6 out of 10. We evaluated UPS against 22 industry peers in the Air Freight & Logistics industry. UPS scores excellent on profitability, but there are some minor concerns on its financial health. UPS is valued quite cheap, but it does not seem to be growing. UPS also has an excellent dividend rating. This makes UPS very considerable for value and dividend investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year UPS was profitable.
UPS had a positive operating cash flow in the past year.
UPS had positive earnings in each of the past 5 years.
UPS had a positive operating cash flow in each of the past 5 years.
UPS Yearly Net Income VS EBIT VS OCF VS FCFUPS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

1.2 Ratios

With an excellent Return On Assets value of 8.55%, UPS belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
UPS has a Return On Equity of 37.39%. This is amongst the best in the industry. UPS outperforms 95.45% of its industry peers.
The Return On Invested Capital of UPS (12.73%) is better than 86.36% of its industry peers.
UPS had an Average Return On Invested Capital over the past 3 years of 15.05%. This is above the industry average of 11.75%.
Industry RankSector Rank
ROA 8.55%
ROE 37.39%
ROIC 12.73%
ROA(3y)11.32%
ROA(5y)10.94%
ROE(3y)43.9%
ROE(5y)85.31%
ROIC(3y)15.05%
ROIC(5y)15.77%
UPS Yearly ROA, ROE, ROICUPS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200 400 600 800

1.3 Margins

UPS has a better Profit Margin (6.44%) than 86.36% of its industry peers.
UPS's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 9.48%, UPS belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
In the last couple of years the Operating Margin of UPS has declined.
Looking at the Gross Margin, with a value of 80.82%, UPS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of UPS has remained more or less at the same level.
Industry RankSector Rank
OM 9.48%
PM (TTM) 6.44%
GM 80.82%
OM growth 3Y-10.47%
OM growth 5Y-2.2%
PM growth 3Y-21.75%
PM growth 5Y1.16%
GM growth 3Y1.64%
GM growth 5Y0.43%
UPS Yearly Profit, Operating, Gross MarginsUPS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

More info and screens

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so UPS is creating value.
UPS has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for UPS has been reduced compared to 5 years ago.
UPS has a better debt/assets ratio than last year.
UPS Yearly Shares OutstandingUPS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
UPS Yearly Total Debt VS Total AssetsUPS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

An Altman-Z score of 3.09 indicates that UPS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.09, UPS is doing good in the industry, outperforming 63.64% of the companies in the same industry.
The Debt to FCF ratio of UPS is 3.98, which is a good value as it means it would take UPS, 3.98 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UPS (3.98) is better than 72.73% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that UPS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.25, UPS is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.25
Debt/FCF 3.98
Altman-Z 3.09
ROIC/WACC1.62
WACC7.86%
UPS Yearly LT Debt VS Equity VS FCFUPS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B

2.3 Liquidity

UPS has a Current Ratio of 1.09. This is a normal value and indicates that UPS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of UPS (1.09) is worse than 63.64% of its industry peers.
A Quick Ratio of 1.09 indicates that UPS should not have too much problems paying its short term obligations.
UPS has a Quick ratio of 1.09. This is comparable to the rest of the industry: UPS outperforms 40.91% of its industry peers.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.09
UPS Yearly Current Assets VS Current LiabilitesUPS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

More info and screens

3

3. Growth

3.1 Past

UPS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.75%.
UPS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.53% yearly.
The Revenue has been growing slightly by 1.30% in the past year.
Measured over the past years, UPS shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
EPS 1Y (TTM)-2.75%
EPS 3Y-13.95%
EPS 5Y0.53%
EPS Q2Q%4.2%
Revenue 1Y (TTM)1.3%
Revenue growth 3Y-2.18%
Revenue growth 5Y4.21%
Sales Q2Q%-0.74%

3.2 Future

The Earnings Per Share is expected to grow by 5.03% on average over the next years.
UPS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.21% yearly.
EPS Next Y-8.13%
EPS Next 2Y2.08%
EPS Next 3Y4.69%
EPS Next 5Y5.03%
Revenue Next Year-4.26%
Revenue Next 2Y-1.76%
Revenue Next 3Y0.17%
Revenue Next 5Y2.21%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
UPS Yearly Revenue VS EstimatesUPS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B 80B 100B
UPS Yearly EPS VS EstimatesUPS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

More info and screens

7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.24 indicates a correct valuation of UPS.
Based on the Price/Earnings ratio, UPS is valued cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of UPS to the average of the S&P500 Index (25.91), we can say UPS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.84, the valuation of UPS can be described as reasonable.
Based on the Price/Forward Earnings ratio, UPS is valued cheaper than 86.36% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UPS to the average of the S&P500 Index (21.77), we can say UPS is valued slightly cheaper.
Industry RankSector Rank
PE 12.24
Fwd PE 11.84
UPS Price Earnings VS Forward Price EarningsUPS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

77.27% of the companies in the same industry are more expensive than UPS, based on the Enterprise Value to EBITDA ratio.
95.45% of the companies in the same industry are more expensive than UPS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.03
EV/EBITDA 7.91
UPS Per share dataUPS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

The excellent profitability rating of UPS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)23.29
EPS Next 2Y2.08%
EPS Next 3Y4.69%

More info and screens

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.84%, UPS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.00, UPS pays a better dividend. On top of this UPS pays more dividend than 95.45% of the companies listed in the same industry.
UPS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
Industry RankSector Rank
Dividend Yield 6.84%

5.2 History

The dividend of UPS is nicely growing with an annual growth rate of 11.18%!
UPS has been paying a dividend for at least 10 years, so it has a reliable track record.
UPS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.18%
Div Incr Years15
Div Non Decr Years25
UPS Yearly Dividends per shareUPS Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

5.3 Sustainability

92.20% of the earnings are spent on dividend by UPS. This is not a sustainable payout ratio.
UPS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP92.2%
EPS Next 2Y2.08%
EPS Next 3Y4.69%
UPS Yearly Income VS Free CF VS DividendUPS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B
UPS Dividend Payout.UPS Dividend Payout, showing the Payout Ratio.UPS Dividend Payout.PayoutRetained Earnings

More info and screens