United Parcel Service Inc


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SKU: UPS Category:


UPS delivered another all-round beat but the company’s stock has slipped to a three-month low. Market forces are considering new headwinds associated with the logistics giant such as the expected relative slowness of e-commerce deliveries as against 2020 coupled with inflationary fears, higher compensation expense from union contract rate increases starting from August 2021, and so on. The company had been a heavy beneficiary of the e-commerce boom caused by the pandemic but with the tailwinds receding, it witnessed a 4% drop in e-commerce deliveries and a 2.9% drop in domestic volume. The low-margin enterprise and B2C volumes representing a large share of the total volume which has led to an increased negative sentiment. The company is investing in its network and reserving planes for the upcoming holiday season which is when revenues are expected to climb again. We give the stock a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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