Why United Parcel Service Inc (UPS) Stock Is A Buy? Acquirer’s Multiple Stock Screener Analysis

Johnny HopkinsStock ScreenerLeave a Comment

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. 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.

UPS Chart

UPS data by YCharts

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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