UPS(US:UPS) The Motley Foolยท2025-09-29 07:54Core Insights - United Parcel Service (UPS) has experienced a significant decline in stock value, but is implementing major changes aimed at long-term improvement [1][12] - The pandemic initially boosted UPS's business due to increased e-commerce, but the subsequent drop in demand led to a stock price crash [5][6] - UPS is undergoing painful short-term changes, including union negotiations and exiting less profitable business segments, which are expected to incur upfront costs [7][8] Business Changes - UPS is focusing on enhancing technology, which requires substantial capital investment but is anticipated to yield long-term benefits [9] - The company is reducing its relationship with Amazon, a major customer, to concentrate on more profitable business lines [11] - Despite current challenges, there are signs of progress, such as a 5.5% increase in profit per package in the U.S. business, indicating potential for a turnaround [14][15] Financial Performance - UPS's stock has lost nearly two-thirds of its value since the pandemic peak, and the dividend yield is currently high at 7.8% [12] - The dividend payout ratio is concerning at nearly 100%, suggesting a potential for future cuts as the company continues its overhaul [13]