UPS Intrinsic Value – Access Financial Services Cuts Holdings in UPS Despite Positive Performance

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Despite a recent reduction in holdings by Access Financial Services, the United Parcel Service ($NYSE:UPS) (UPS) has continued to show strong performance in its operations. UPS is a leading global provider of specialized transportation and logistics services. It offers a wide range of solutions including the transportation of packages and freight, the facilitation of international trade, and the deployment of advanced technology to manage the world’s largest delivery network. Despite Access Financial Services cutting its holdings in UPS, the stock has continued to outperform the broader markets.

The company has posted strong earnings results over the past several quarters, driven by customer demand for its services and an expanding global footprint. It has also benefited from improved efficiency in its operations, resulting in higher margins and increased profits. This strong performance has helped to push the stock price up, which is likely a factor in Access’s decision to reduce its holdings.

Market Price

On Monday, UNITED PARCEL SERVICE (UPS) stock opened at $179.7 and closed at $181.3, up by 0.9% from last closing price of 179.8. This follows several months of UPS stock prices surging, with the company reporting strong earnings in its most recent quarter and beating analysts’ expectations. The reduction of Access Financial Services’ stake in UPS is a sign of caution amongst some investors, despite the strong performance of the stock in recent months. Live Quote…

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…

Analysis – UPS Intrinsic Value

At GoodWhale, we recently conducted a detailed analysis of UNITED PARCEL SERVICE’s (UPS) financials. After our proprietary Valuation Line calculations, we concluded the fair value of UPS’s share to be around $193.3. However, UPS stock is currently traded at $181.3, which is undervalued by 6.2%. This means it is a good time for investors to buy shares in this company. Our Valuation Line takes into account the company’s expected cash flows, growth prospects, as well as the current market trends and the company’s sector. We believe our analysis provides investors with an accurate estimate of a company’s fair value. We always suggest to do your own research and make an informed decision before investing in any company. 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

Access Financial Services recently reduced their holdings in UPS, citing strong performance as the reason for their move. UPS has consistently increased their dividend payments and generated positive operating cash flow, indicating to investors that they are in a strong financial position. Furthermore, they have been investing heavily in new technology, such as drones for delivery and advanced tracking systems, giving them an edge over competitors in the e-commerce market. With these investments, and strong fundamentals, UPS appears to be a sound investment for the long term.