Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
United Parcel Service Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
The annual financial data for the company reveals distinct trends in its cash flow activities over the five-year period ending in 2024.
- Net Cash from Operating Activities
- There is an initial upward trend from 2020 to 2021, with net cash from operating activities increasing from $10,459 million to $15,007 million. This represents a significant improvement in the cash generated from core operations. However, from 2021 to 2023, there is a downward trajectory, with values decreasing to $10,238 million by 2023. The figure stabilizes slightly in 2024 at $10,122 million, remaining close to the 2020 level but significantly lower than the peak in 2021.
- Free Cash Flow to Equity (FCFE)
- The FCFE shows a strong growth between 2020 and 2021, nearly doubling from $4,196 million to $8,040 million. Following this peak, there is a gradual decline through 2022 and 2024, with a slight recovery in 2023 to $7,352 million before dropping to $5,239 million in 2024. Despite the decline after 2021, the FCFE remains higher in 2024 than in 2020, indicating a net improvement in cash available to equity holders over the period.
Overall, the data suggests that operating cash flows peaked in 2021 but faced challenges in returning to those levels in subsequent years. In contrast, free cash flow to equity exhibited more volatility but maintained a generally improved level compared to 2020. The divergence between operating cash flow and FCFE patterns in the later years may warrant further analysis of capital expenditures, working capital changes, or financing activities to understand underlying causes.
Price to FCFE Ratio, Current
United Parcel Service Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 846,797,806 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 5,239) |
| FCFE per share | 6.19 |
| Current share price (P) | 102.92 |
| Valuation Ratio | |
| P/FCFE | 16.64 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| FedEx Corp. | 19.14 |
| Uber Technologies Inc. | 30.05 |
| Union Pacific Corp. | 31.69 |
| United Airlines Holdings Inc. | — |
| P/FCFE, Sector | |
| Transportation | 26.75 |
| P/FCFE, Industry | |
| Industrials | 34.57 |
Based on: 10-K (reporting date: 2024-12-31).
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
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 854,171,950 | 852,653,061 | 858,740,988 | 870,391,403 | 867,038,529 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 5,239) | 7,352) | 7,031) | 8,040) | 4,196) | |
| FCFE per share3 | 6.13 | 8.62 | 8.19 | 9.24 | 4.84 | |
| Share price1, 4 | 115.42 | 148.64 | 178.46 | 208.97 | 161.60 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 18.82 | 17.24 | 21.80 | 22.62 | 33.39 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| FedEx Corp. | 24.93 | 25.37 | 19.48 | 36.75 | 13.28 | |
| Uber Technologies Inc. | 24.73 | 50.60 | 333.68 | 139.66 | — | |
| Union Pacific Corp. | 32.74 | 36.37 | 13.19 | 17.16 | 18.08 | |
| United Airlines Holdings Inc. | — | — | — | 2.58 | 3.16 | |
| P/FCFE, Sector | ||||||
| Transportation | 26.65 | 34.40 | 23.54 | 19.46 | 23.19 | |
| P/FCFE, Industry | ||||||
| Industrials | 30.92 | 23.85 | 25.07 | — | 40.69 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 5,239,000,000 ÷ 854,171,950 = 6.13
4 Closing price as at the filing date of United Parcel Service Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 115.42 ÷ 6.13 = 18.82
6 Click competitor name to see calculations.
- Share Price
- The share price exhibited a peak in 2021 at $208.97, followed by a steady decline over the subsequent years. From 2022 to 2024, the share price fell from $178.46 to $115.42, representing a significant decrease and indicating reduced market valuation or investor confidence over this period.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share showed strong growth from 2020 to 2021, rising from $4.84 to $9.24, nearly doubling within one year. It then slightly declined in 2022 to $8.19 and remained relatively stable in 2023 at $8.62. However, in 2024 there was a notable drop to $6.13, signaling a reduction in free cash flow available to equity shareholders in the most recent period.
- Price to Free Cash Flow to Equity (P/FCFE) Ratio
- The P/FCFE ratio declined steadily from 33.39 in 2020 to a low of 17.24 in 2023, suggesting that the market price became more aligned with free cash flow, potentially indicating improved valuation or a market adjustment to underlying cash flow dynamics. There was a slight increase in the ratio to 18.82 in 2024, which may reflect the stronger relative decrease in FCFE per share compared to the share price.
- Overall Trends and Insights
- The data reflect a period of peak market valuation in 2021 followed by gradual declines in share price through 2024. Although free cash flow per share initially improved substantially, gains were not sustained beyond 2021, and a reduction occurred in 2024. The decreasing P/FCFE ratio over most years indicates that investor expectations adjusted downward relative to cash flow generation, with a modest reversal in 2024. Together, these trends could imply a contraction in market sentiment and business performance, highlighting potential challenges or changes in company fundamentals during the latter years.