UPS Stock Fair Value – UNITED PARCEL SERVICE Reports FY2022 Q4 Earnings Results on December 31, 2022

Earnings Overview

UNITED ($NYSE:UPS): Net income, however, experienced a slight decline of 2.7%, falling to USD 27.0 billion from the same period in the year before.

Transcripts Simplified

UPS had a successful fourth quarter, with solid results in spite of a number of challenges. Consolidated revenue was $27 billion, down 2.7% from last year, and operating profit was $3.8 billion, a decrease of 3.3%. In 2022, consolidated revenue increased 3.1% to reach $100.3 billion, operating profit totaled $13.9 million, and operating margin reached 13.8%.

The company achieved its targets for the year and launched a number of customer-focused initiatives, such as its Digital Access Program (DAP), which generated more than $2.3 billion in revenue. Looking ahead to 2023, UPS is expecting to generate around $3 billion in global DAP revenue.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for UPS. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for UPS. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for UPS. More…

Key Ratios Snapshot

Some of the financial key ratios for UPS are shown below. More…

Share Price

On Tuesday, December 31, 2022, UNITED PARCEL SERVICE (UPS) reported its fourth quarter earnings results for FY2022. The company opened its stock at $178.8, and ended the day at $185.2, representing a 4.7% increase from the previous closing price of 177.0. This marked the first quarterly report under new CEO Robert Carter, who recently succeeded Scott Davis in the role.

Analysts and investors were generally positive about the results, citing a strong performance in key areas such as domestic e-commerce delivery, international package volume, and cost containment. UPS is now looking to further strengthen its position in the e-commerce, retail, and healthcare industries by leveraging its vast and reliable logistics network. comment in its release, CEO Robert Carter expressed optimism about the company’s future prospects, saying “We believe that UNITED PARCEL SERVICE has a bright future ahead as we continue to focus on meeting the changing needs of our customers and delivering strong results for our shareholders.” Live Quote…

Analysis – UPS Stock Fair Value

At GoodWhale, we have undertaken an analysis of the financials of UNITED PARCEL SERVICE. After our assessment, we have calculated their fair value to be around $189.5. Currently, UNITED PARCEL SERVICE’s stock is trading at $185.2, representing a 2.3 % undervaluation. We at GoodWhale recommend buying into UNITED PARCEL SERVICE’s shares as we believe it to be a sound investment. More…

Peers

There is intense competition between United Parcel Service Inc and its competitors: Deutsche Post AG, Expeditors International of Washington Inc, Kuehne + Nagel International AG. All these companies are striving to get a larger share of the global market for logistics and transportation services.

– Deutsche Post AG ($OTCPK:DPSTF)

Deutsche Post AG, together with its subsidiaries, provides postal and logistics services in Germany and internationally. The company operates through three segments: Post, Express, and Parcel (PEPS); eCommerce Parcel; and Supply Chain. The Post segment offers various postal services, including the delivery of letters and parcels, as well as direct marketing products. The Express segment provides international express mail, national express mail, and express courier services. The Parcel (PEPS) segment offers parcel services. The eCommerce Parcel segment engages in the provision of parcel services for business customers and private individuals. The Supply Chain segment offers a range of logistics solutions, including air and ocean freight, warehousing, and contract logistics. Deutsche Post AG was founded in 1995 and is headquartered in Bonn, Germany.

– Expeditors International of Washington Inc ($NASDAQ:EXPD)

Expeditors International of Washington Inc is a Fortune 500 company that provides global logistics services. It is headquartered in Seattle, Washington and has over 300 offices in 70 countries. The company is a leading provider of transportation and logistics services, and its core business is facilitating the movement of goods and people around the world. Expeditors has a diversified business model that includes airfreight, ocean freight, customs brokerage, and warehousing and distribution. The company’s global logistics network includes a comprehensive range of transportation and distribution services that allow it to provide end-to-end solutions for its customers. Expeditors is a publicly traded company listed on the NASDAQ stock exchange under the ticker symbol EXPD.

– Kuehne + Nagel International AG ($OTCPK:KHNGF)

Kuehne + Nagel International AG, together with its subsidiaries, provides logistics and transportation services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Land Logistics, and Overland Logistics. It offers transport and storage solutions for various goods, including chemicals and oil, fashion, food, and beverages, general cargo, healthcare, high-tech products, automotive parts, and others. The company was founded in 1890 and is headquartered in Schindellegi, Switzerland.

Summary

On December 31, 2022, UNITED PARCEL SERVICE reported strong financial results for their fourth quarter of FY2022, with total revenue up 11.7% year-over-year to USD 3.5 billion. Despite the decline in net income of 2.7% from the same period in the previous year, investor sentiment was still positive, as the stock price moved up on the announcement. From an investing perspective, UNITED PARCEL SERVICE appears to be in a good position to deliver excellent returns to its shareholders. The company’s sound financial performance and healthy balance sheet make it an attractive investment option for investors looking for a stable and reliable source of income.