UPS: Leaders of the Package

This episode is brought to you by:

Visible Alpha. Visible Alpha has built a platform to analyze consensus data and financial metrics on over 6,000 public traded companies. Rather than having to dig through models one by one, Visible Alpha extracts data from every line item across sell-side models so you can better understand expectations on metrics beyond just revenue and earnings. Try Visible Alpha for free by visiting visiblealpha.com/breakdowns

Quartr. With Quartr, you can access conference calls, investor presentations, transcripts, and earnings reports – straight from your pocket. Quartr is 100% free and includes companies from 12 markets including the US, the UK, Canada, India, and all the Scandanavian countries. Quartr is available for both iOS and Android, so check out the app today.

[00:02:37] - [First question] - The footprint of UPS in the US economy

[00:04:11] - What relevant metrics analysts use to understand UPS’ value

[00:06:57] - How logistics networks work and operating leverage on their fixed assets

[00:10:43] - UPS’ origin story and key differences between it, Amazon and FedEx

[00:18:24] - Whether or not Amazon is consuming the market or if the market is growing

[00:22:20] - Decreased return on capital and the roadmap to increase returns going forward

[00:25:14] - Making a decision to lean into their network and what it meant for their customers

[00:27:33] - The importance of management and needing outsider management

[00:31:40] - Capital investment programs and what Amazon’s growth means for UPS

[00:34:41] - Secular changes versus historical cyclicality of fulfillment businesses

[00:36:35] - Competitive impacts Amazon and USPS could have on UPS’ future success

[00:42:26] - Why cross-border delivery is such a lucrative aspect of this market

[00:42:51] - Lessons for investors and builders when studying UPS’ story