UPS: Margin Expansion Through Fit To Serve And Network Of The Future

Selendis Research profile picture
Selendis Research
145 Followers
(10min)

Summary

  • UPS offers a compelling investment opportunity despite macroeconomic challenges, with initiatives like Fit To Serve and Network of The Future expected to boost margins significantly.
  • In 3Q24, UPS reported $22.24 billion in revenue, a 5.6% year-on-year growth, with net margins improving to 6.92% from 5.35%.
  • Despite potential revenue declines due to tariffs, UPS's cost-saving measures and operational optimizations are likely to enhance margins and cash flows.
  • Valuation analysis suggests a 30% upside potential, with an implied share price of $172, even with conservative revenue growth estimates.

UPS Delivering

Juanmonino

Introduction

United Parcel Service (NYSE:UPS) is one of the world's largest package delivery company headquartered in Atlanta, Georgia. Currently, the company employs more than 500k full-time employees and operates a fleet of airlines and vehicles under the UPS brand. As of

This article was written by

Selendis Research profile picture
145 Followers
With over 7 years of experience in the buy-side, my investment philosophy is rooted in both fundamental bottom-up analysis and quantitative modelling. My forte lies in identifying perception gaps to capitalize on over-pessimism and excessive exuberance. My objective is simple, identifying asymmetric for all of us to capitalize on. I also provide daily market updates and explainers on Seven Insights. Otherwise, if you have specific requests on companies you'd like me to cover, feel free to drop me a DM.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in UPS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About UPS Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on UPS

Related Stocks

SymbolLast Price% Chg
UPS
--