Investors shouldn't underestimate the upside potential at United Parcel Service (NYSE: UPS). If CEO Carol Tome can achieve her goal of expanding profit margin, then the package delivery giant could be set for a significant increase in earnings and free cash flow in the coming years. It all makes for an attractive investment. Here are a few charts to help outline the investment case for the stock.
The following chart breaks out adjusted operating income by segment. Within the segments, two activities dominate UPS' earnings. In the U.S. domestic package segment, 73% of revenue came from ground-based deliveries.
Data source: UPS presentations. Chart by author.
Source Fool.com