From the recent numbers report, UPS has U.S. domestic deliveries per day rise 5.7%, driven by ecommerce. Deferred air shipments also rose 10% and next day air increased 5.9%. Total revenue was reported at $14.9 billion, up 4.9% over the same quarter last year. These are all solid numbers from the report, but it is important to note this is for the short term. You’ll want to read over the cash flow statement and balance sheets to get a better understanding of longer-term projections.
Switching gears to the chart, let us take a look at price and see if it is reacting in a normal manner. Price was stuck in a range bound trading area for a short while, but has since broken the top of that range and continued to the up side. If you have belief that price is going to increase, now might be a good time to enter as price just broke top side. If your notion is that this is a false breakout, I would recommend waiting for a greater pullback and price the stock using statistics and ratios.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include United Parcel income statement, its balance sheet, and the statement of cash flows. Potential United Parcel investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although United Parcel investors may use each financial statement separately, they are all related. The changes in United Parcel's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on United Parcel's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of United Parcel
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of United Parcel performance into the future periods or doing a reasonable stock valuation. The intrinsic value of United Parcel shares is the value that is considered the true value of the share. If
the intrinsic value of United is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares United Parcel. Please read more on our
fundamental analysis page.
How effective is United Parcel in utilizing its assets?
United Parcel Service reports assets on its Balance Sheet. It represents the amount of United resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, United Parcel aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Air Freight & Logistics space. To get a better handle on how balance sheet or income statements item affect United volatility, please check the breakdown of all its
fundamentals.
Are United Parcel Earnings Expected to grow?
The
future earnings power of United Parcel involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of United Parcel factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. United Parcel
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of United
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of United Parcel earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. United Parcel dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. United one year expected dividend income is about USD4.22 per share.
At this time, United Parcel's
Dividend Yield is comparatively stable compared to the past year.
Dividend Paid And Capex Coverage Ratio is likely to gain to 50.23 in 2024, despite the fact that
Dividends Paid is likely to grow to (5.1
B).
Investing in dividend-paying stocks, such as United Parcel Service is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in United Parcel must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for United Parcel. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
United Parcel Gross Profit
United Parcel Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing United Parcel previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show United Parcel Gross Profit growth over the last 10 years. Please check United Parcel's
gross profit and other
fundamental indicators for more details.
Going after United Financials
Risks
Being in the shipping and logistic industry, there are many variables that a company has to tend with. The company’s latest 10-K report has a breakdown of the many risks that could affect the company, but here are a couple to keep in mind. The company cites increased security requirements could impose substantial costs, which we all know trickle down to the end user. As global security becomes more and more of a priority, this certainly will be one to watch. Another risk cited was global climate change in regards to regulatory changes or market response could affect the company in a negative manner. If there are countries that are changing laws, this could limit where people send packages.
Conclusion
There will always be a need to ship products around the world and UPS helps us fulfill that need. Before investing, I would compare this company with others and see if UPS is offering the best value for your investing dollars. Also, contact an investing professional as they can direct you in the right direction to benefit your portfolio. Again, UPS is a solid company and should be a solid potential client for your portfolio.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
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