Stock Analysis on Net
Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

United Parcel Service Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income 6,708 11,548 12,890 1,343 4,440
Net noncash charges 3,902 2,925 2,781 8,035 4,063
Changes in assets and liabilities, net of effects of acquisitions (372) (369) (664) 1,081 136
Net cash from operating activities 10,238 14,104 15,007 10,459 8,639
Capital expenditures (5,158) (4,769) (4,194) (5,412) (6,380)
Net change in short-term debt 1,272 — — (2,462) 310
Proceeds from long-term borrowings 3,429 — — 5,003 5,205
Repayments of long-term borrowings (2,429) (2,304) (2,773) (3,392) (3,096)
Free cash flow to equity (FCFE) 7,352 7,031 8,040 4,196 4,678

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to United Parcel Service Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. United Parcel Service Inc. FCFE decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Price to FCFE Ratio, Current

United Parcel Service Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 853,369,558
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 7,352
FCFE per share 8.62
Current share price (P) 133.20
Valuation Ratio
P/FCFE 15.46
Benchmarks
P/FCFE, Competitors1
FedEx Corp. 23.95
Uber Technologies Inc. 43.58
Union Pacific Corp. 33.82
P/FCFE, Sector
Transportation 27.15
P/FCFE, Industry
Industrials 24.31

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

United Parcel Service Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 852,653,061 858,740,988 870,391,403 867,038,529 858,487,676
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 7,352 7,031 8,040 4,196 4,678
FCFE per share3 8.62 8.19 9.24 4.84 5.45
Share price1, 4 148.64 178.46 208.97 161.60 106.48
Valuation Ratio
P/FCFE5 17.24 21.80 22.62 33.39 19.54
Benchmarks
P/FCFE, Competitors6
FedEx Corp. 25.37 19.48 36.75 13.28 38.51
Uber Technologies Inc. 50.60 333.68 139.66 — —
Union Pacific Corp. 36.37 13.19 17.16 18.08 15.24
P/FCFE, Sector
Transportation 29.42 20.55 24.57 31.15 31.09
P/FCFE, Industry
Industrials 22.81 23.85 — 49.40 28.48

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 7,352,000,000 ÷ 852,653,061 = 8.62

4 Closing price as at the filing date of United Parcel Service Inc. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 148.64 ÷ 8.62 = 17.24

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. United Parcel Service Inc. P/FCFE ratio decreased from 2021 to 2022 and from 2022 to 2023.