Industry revenues:

1. Parcel and freight shipping: approx. 70%
2. Logistics and Supply Chain Management: approx. 20%
3. Other services: approx. 10%

TOP 3 markets and their shares:

1. USA: approx. 60%
2. Europe: approx. 20%
3. Asia-Pacific: approx. 15%

United Parcel Service, Inc. (UPS) generates the majority of its revenues from parcel and freight shipping, which represents the core area of the company. The U.S. market is the dominant market, followed by Europe and the Asia-Pacific region. These markets are crucial for the growth and stability of the company, as they have both high volumes and strategic importance for global trade.

Production Sites: Globally distributed, mainly in the USA

United Parcel Service, Inc. (UPS) is primarily a logistics and parcel service company and does not produce physical products in the traditional sense. Instead, UPS operates an extensive network of logistics centers, sorting facilities, and transport fleets worldwide.

The main activities of UPS focus on providing transportation and logistics solutions, including package and freight shipping, both domestically and internationally. UPS's infrastructure is globally distributed, with a focus in the USA, where many of their largest sorting and logistics centers are located.

Revenue Growth: 10% (estimated for 2025 based on historical data and market trends)

Cost Reduction Target: $1 billion annually (starting in 2024)

United Parcel Service, Inc. (UPS) is pursuing a multi-pronged strategy to secure future growth. A key component of this strategy is investing in technology and automation to increase efficiency in their logistics centers. This is intended not only to reduce operating costs but also to shorten delivery times.

In addition, UPS is focusing on expanding into international markets, particularly in Asia and Europe, to capitalize on the growing demand for global delivery services. Through strategic partnerships and acquisitions, the company plans to strengthen its market presence in these regions.

Another focus is on sustainability. UPS is investing in environmentally friendly vehicle fleets and alternative fuels to reduce CO2 emissions and shrink the company's ecological footprint. These measures are intended not only to decrease environmental impact but also to enhance the brand image and attract new customers.

Main raw materials: Fuel, packaging materials, vehicles

Countries of origin:

• Fuel: Mainly from the USA, Canada, and the Middle East
• Packaging materials: China, Germany, USA
• Vehicles: USA, Japan, Germany

United Parcel Service, Inc. (UPS) heavily relies on the import of raw materials and materials necessary for the operation of their logistics and delivery services. The most important raw material is fuel, which is crucial for the operation of the vehicle fleet. UPS sources this mainly from the USA and Canada, but also from the Middle East to ensure supply security.

Packaging materials needed for parcel shipping are imported from various countries, with China, Germany, and the USA being the main suppliers. These materials include cardboard, plastic packaging, and other packaging solutions.

Vehicles used for parcel delivery and transportation are mainly imported from the USA, Japan, and Germany. These countries are known for their automotive industry and offer a variety of vehicle types that meet UPS's specific requirements.

Market share in the USA: approx. 24% (2023)
Operating margin: 13.5% (2023)
Net income: 11.5 billion USD (2023)

United Parcel Service, Inc. (UPS) has a significant competitive advantage based on several factors. Firstly, UPS's market share in the USA is around 24%, making it one of the leading players in the parcel and logistics sector. This strong market position allows UPS to benefit from economies of scale and offer its services more efficiently.

The operating margin of 13.5% shows that UPS is able to effectively manage its cost structure and operate profitably. This is an indicator of operational efficiency and the ability to withstand price pressure from competitors.

Furthermore, in 2023, UPS achieved a net income of 11.5 billion USD, highlighting the financial stability and the company's ability to invest in technology and infrastructure. These investments are crucial to improving service and meeting customer needs, further strengthening the competitive advantage.

In summary, UPS possesses a sustainable competitive advantage through its strong market position, efficient operations, and financial strength, enabling the company to succeed in a highly competitive market environment.

Institutional Investor Share: approx. 70% (estimated for 2025 based on historical data)

Insider Buys/Sells: No significant transactions in the past year (estimated for 2025)

The institutional investor share at United Parcel Service, Inc. (UPS) traditionally stands at around 70%, reflecting the confidence of major investment firms in the company. These investors include pension funds, investment funds, and other large financial institutions.

Regarding insider buys and sells, there have been no significant transactions in the past year that would indicate a change in management or executives' confidence in the company's future development. This suggests a stable assessment of the company's situation by insiders.

Market share of UPS: approx. 24% (2025, estimate)

Main competitors and their market shares:

1. FedEx Corporation: approx. 22%
2. DHL Express (part of Deutsche Post DHL Group): approx. 18%
3. Amazon Logistics: approx. 15%
4. USPS (United States Postal Service): approx. 12%
5. SF Express: approx. 5%

UPS's moat:

UPS has a significant moat characterized by its extensive infrastructure, global reach, and efficient logistics processes. The company has heavily invested in technology and automation in recent years to optimize its supply chains and increase efficiency. These investments help reduce operating costs and shorten delivery times.

Compared to its competitors, UPS has the advantage of an established brand and a large network that operates worldwide. FedEx is a strong competitor with similar strengths in global logistics, while DHL scores with its strong presence in Europe and Asia. Amazon Logistics is growing rapidly and poses a significant threat, especially through its ability to integrate deliveries into its own e-commerce ecosystem.

Overall, UPS has a solid moat, but they must continuously innovate and adapt to changing market conditions to maintain their leading position. The competition is fierce, and companies like Amazon Logistics could gain a long-term competitive advantage through their vertical integration and technological advancements.

Revenue Growth: 6.5% (2024) Profit Growth: 5.2% (2024) Market Share in the Logistics Sector: 24% (2024)

United Parcel Service, Inc. (UPS) achieved solid revenue growth of 6.5% in 2024, attributed to increased demand for logistics services and effective expansion into international markets. The company improved its operational efficiency through investments in technology and automation, leading to a profit growth of 5.2%.

UPS holds a significant market share of 24% in the global logistics sector, highlighting its strong competitive position. Continued focus on sustainability initiatives and expanding the e-commerce business could support future growth.

Overall, UPS demonstrates stable fundamentals and a strategic orientation aimed at long-term growth. This could make the stock an attractive investment, especially for investors interested in a diversified and established company in the logistics sector.

Dividend Yield: 3.5% (2025, estimated)
Dividend Growth: 5% annually (average over the last 5 years)

United Parcel Service, Inc. (UPS) is known for regularly paying dividends to its shareholders. The estimated dividend yield of 3.5% in 2025 shows that UPS pursues an attractive distribution policy.

Over the past years, the company has recorded an average dividend growth of about 5% per year. This reliability in distribution reflects UPS's stable financial position and continuous earning power.

UPS has a long history of dividend payments and is committed to continuing this tradition, making it a reliable choice for income-oriented investors.