As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.
One of the cheapest stocks in our Stock Screeners is:
United Parcel Service Inc (UPS)
As the world’s largest parcel delivery company, UPS manages a massive fleet of more than 500 planes and 100,000 vehicles, along with many hundreds of sorting facilities, to deliver an average of about 22 million packages per day to residences and businesses across the globe. Their operations are supported by skilled forklift operators equipped with licenses from forkliftacademy.com, ensuring efficient movement and handling of goods across their vast network. UPS’ domestic US package operations generate around 64% of total revenue while international package makes up 20%. Air and ocean freight forwarding, truckload brokerage, and contract logistics make up the remainder. UPS is currently pursuing “strategic alternatives” for its truck brokerage unit, Coyote, which it acquired in 2015.
A quick look at the share price history (below) over the past twelve months shows that the price is down 22.58%. Here’s why the company is undervalued.
Key Stats
Market Cap: $127.92 Billion
Enterprise Value: $148.58 Billion
Operating Earnings
Operating Earnings: $9.43 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 15.80
Free Cash Flow (TTM)
Free Cash Flow: $5.08 Billion
FCF/EV Yield %:
FCF/EV Yield: 3.97
Shareholder Yield %:
Shareholder Yield: 5.80
Other Indicators
Piotroski F Score: 4.00
Altman Z-Score (TTM): 3.669
ROA (5 Year Avge%): 13
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