UNITED PARCEL SERVICE-CL B (UPS) Fundamental Analysis & Valuation
NYSE:UPS • US9113121068
Current stock price
105.54 USD
+1.6 (+1.54%)
Last:
This UPS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. UPS Profitability Analysis
1.1 Basic Checks
- UPS had positive earnings in the past year.
- In the past year UPS had a positive cash flow from operations.
- UPS had positive earnings in each of the past 5 years.
- In the past 5 years UPS always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of UPS (7.62%) is better than 78.26% of its industry peers.
- UPS's Return On Equity of 34.34% is amongst the best of the industry. UPS outperforms 95.65% of its industry peers.
- The Return On Invested Capital of UPS (10.69%) is better than 86.96% of its industry peers.
- UPS had an Average Return On Invested Capital over the past 3 years of 12.14%. This is above the industry average of 9.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 34.34% | ||
| ROIC | 10.69% |
ROA(3y)8.45%
ROA(5y)12.03%
ROE(3y)35.89%
ROE(5y)51.3%
ROIC(3y)12.14%
ROIC(5y)14.96%
1.3 Margins
- Looking at the Profit Margin, with a value of 6.28%, UPS belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
- UPS's Profit Margin has improved in the last couple of years.
- UPS has a better Operating Margin (8.91%) than 91.30% of its industry peers.
- In the last couple of years the Operating Margin of UPS has declined.
- Looking at the Gross Margin, with a value of 83.19%, UPS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of UPS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.91% | ||
| PM (TTM) | 6.28% | ||
| GM | 83.19% |
OM growth 3Y-12.07%
OM growth 5Y-2.35%
PM growth 3Y-18.26%
PM growth 5Y31.69%
GM growth 3Y2.87%
GM growth 5Y1.17%
2. UPS Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UPS is creating some value.
- The number of shares outstanding for UPS has been reduced compared to 1 year ago.
- The number of shares outstanding for UPS has been reduced compared to 5 years ago.
- UPS has a worse debt/assets ratio than last year.
2.2 Solvency
- UPS has an Altman-Z score of 2.94. This is not the best score and indicates that UPS is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of UPS (2.94) is comparable to the rest of the industry.
- The Debt to FCF ratio of UPS is 5.06, which is a neutral value as it means it would take UPS, 5.06 years of fcf income to pay off all of its debts.
- UPS has a better Debt to FCF ratio (5.06) than 78.26% of its industry peers.
- UPS has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
- UPS's Debt to Equity ratio of 1.45 is on the low side compared to the rest of the industry. UPS is outperformed by 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.34
WACC7.95%
2.3 Liquidity
- A Current Ratio of 1.22 indicates that UPS should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.22, UPS is doing worse than 69.57% of the companies in the same industry.
- UPS has a Quick Ratio of 1.22. This is a normal value and indicates that UPS is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of UPS (1.22) is worse than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. UPS Growth Analysis
3.1 Past
- The earnings per share for UPS have decreased strongly by -13.48% in the last year.
- Measured over the past years, UPS shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.72% on average per year.
- UPS shows a decrease in Revenue. In the last year, the revenue decreased by -2.65%.
- The Revenue has been growing slightly by 0.94% on average over the past years.
EPS 1Y (TTM)-13.48%
EPS 3Y-17.92%
EPS 5Y-2.72%
EPS Q2Q%-28.19%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y-4.04%
Revenue growth 5Y0.94%
Sales Q2Q%-1.6%
3.2 Future
- UPS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.78% yearly.
- UPS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.13% yearly.
EPS Next Y-0.72%
EPS Next 2Y6.01%
EPS Next 3Y6.26%
EPS Next 5Y10.78%
Revenue Next Year1.43%
Revenue Next 2Y2.77%
Revenue Next 3Y2.79%
Revenue Next 5Y4.13%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. UPS Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 15.66, UPS is valued correctly.
- Based on the Price/Earnings ratio, UPS is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
- UPS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
- UPS is valuated correctly with a Price/Forward Earnings ratio of 13.12.
- UPS's Price/Forward Earnings ratio is rather cheap when compared to the industry. UPS is cheaper than 91.30% of the companies in the same industry.
- UPS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 13.12 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, UPS is valued cheaper than 86.96% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, UPS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.82 | ||
| EV/EBITDA | 9.15 |
4.3 Compensation for Growth
- The excellent profitability rating of UPS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.01%
EPS Next 3Y6.26%
5. UPS Dividend Analysis
5.1 Amount
- UPS has a Yearly Dividend Yield of 6.31%, which is a nice return.
- UPS's Dividend Yield is rather good when compared to the industry average which is at 1.12. UPS pays more dividend than 95.65% of the companies in the same industry.
- UPS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
5.2 History
- The dividend of UPS is nicely growing with an annual growth rate of 10.10%!
- UPS has been paying a dividend for at least 10 years, so it has a reliable track record.
- UPS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.1%
Div Incr Years16
Div Non Decr Years26
5.3 Sustainability
- 96.88% of the earnings are spent on dividend by UPS. This is not a sustainable payout ratio.
- UPS's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP96.88%
EPS Next 2Y6.01%
EPS Next 3Y6.26%
UPS Fundamentals: All Metrics, Ratios and Statistics
NYSE:UPS (4/29/2026, 3:37:05 PM)
105.54
+1.6 (+1.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Industry Strength57.76
Industry Growth18.01
Earnings (Last)04-28 2026-04-28/bmo
Earnings (Next)N/A N/A
Inst Owners69.68%
Inst Owner Change-0.31%
Ins Owners0.01%
Ins Owner Change-0.75%
Market Cap89.67B
Revenue(TTM)88.66B
Net Income(TTM)5.57B
Analysts72
Price Target116.21 (10.11%)
Short Float %2.2%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
Yearly Dividend6.34
Dividend Growth(5Y)10.1%
DP96.88%
Div Incr Years16
Div Non Decr Years26
Ex-Date02-17 2026-02-17 (1.64)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.84%
Min EPS beat(2)7.04%
Max EPS beat(2)32.65%
EPS beat(4)3
Avg EPS beat(4)11.22%
Min EPS beat(4)-1.66%
Max EPS beat(4)32.65%
EPS beat(8)6
Avg EPS beat(8)7.34%
EPS beat(12)8
Avg EPS beat(12)4.96%
EPS beat(16)11
Avg EPS beat(16)4.47%
Revenue beat(2)2
Avg Revenue beat(2)1.38%
Min Revenue beat(2)0.97%
Max Revenue beat(2)1.78%
Revenue beat(4)4
Avg Revenue beat(4)1.21%
Min Revenue beat(4)0.72%
Max Revenue beat(4)1.78%
Revenue beat(8)4
Avg Revenue beat(8)-0.18%
Revenue beat(12)4
Avg Revenue beat(12)-1.17%
Revenue beat(16)5
Avg Revenue beat(16)-1.21%
PT rev (1m)-0.4%
PT rev (3m)7.93%
EPS NQ rev (1m)-4.13%
EPS NQ rev (3m)-25.65%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-1.13%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)1.46%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 13.12 | ||
| P/S | 1.01 | ||
| P/FCF | 18.82 | ||
| P/OCF | 10.61 | ||
| P/B | 5.53 | ||
| P/tB | 14.08 | ||
| EV/EBITDA | 9.15 |
EPS(TTM)6.74
EY6.39%
EPS(NY)8.05
Fwd EY7.62%
FCF(TTM)5.61
FCFY5.31%
OCF(TTM)9.95
OCFY9.42%
SpS104.35
BVpS19.1
TBVpS7.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number53.8165 (-49.01%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 34.34% | ||
| ROCE | 13.75% | ||
| ROIC | 10.69% | ||
| ROICexc | 11.91% | ||
| ROICexgc | 14.72% | ||
| OM | 8.91% | ||
| PM (TTM) | 6.28% | ||
| GM | 83.19% | ||
| FCFM | 5.37% |
ROA(3y)8.45%
ROA(5y)12.03%
ROE(3y)35.89%
ROE(5y)51.3%
ROIC(3y)12.14%
ROIC(5y)14.96%
ROICexc(3y)13.68%
ROICexc(5y)17.5%
ROICexgc(3y)16.53%
ROICexgc(5y)20.88%
ROCE(3y)15.62%
ROCE(5y)19.24%
ROICexgc growth 3Y-17.94%
ROICexgc growth 5Y-5.7%
ROICexc growth 3Y-19.14%
ROICexc growth 5Y-6.76%
OM growth 3Y-12.07%
OM growth 5Y-2.35%
PM growth 3Y-18.26%
PM growth 5Y31.69%
GM growth 3Y2.87%
GM growth 5Y1.17%
F-Score6
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 5.06 | ||
| Debt/EBITDA | 2.02 | ||
| Cap/Depr | 98.37% | ||
| Cap/Sales | 4.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.56% | ||
| Profit Quality | 85.52% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.94 |
F-Score6
WACC7.95%
ROIC/WACC1.34
Cap/Depr(3y)119.97%
Cap/Depr(5y)130.31%
Cap/Sales(3y)4.71%
Cap/Sales(5y)4.64%
Profit Quality(3y)89.57%
Profit Quality(5y)86.69%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.48%
EPS 3Y-17.92%
EPS 5Y-2.72%
EPS Q2Q%-28.19%
EPS Next Y-0.72%
EPS Next 2Y6.01%
EPS Next 3Y6.26%
EPS Next 5Y10.78%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y-4.04%
Revenue growth 5Y0.94%
Sales Q2Q%-1.6%
Revenue Next Year1.43%
Revenue Next 2Y2.77%
Revenue Next 3Y2.79%
Revenue Next 5Y4.13%
EBIT growth 1Y-7.88%
EBIT growth 3Y-15.62%
EBIT growth 5Y-1.44%
EBIT Next Year48.13%
EBIT Next 3Y18.75%
EBIT Next 5Y14.49%
FCF growth 1Y-23.31%
FCF growth 3Y-20.08%
FCF growth 5Y-1.14%
OCF growth 1Y-16.52%
OCF growth 3Y-15.7%
OCF growth 5Y-4.18%
UNITED PARCEL SERVICE-CL B / UPS Fundamental Analysis FAQ
What is the fundamental rating for UPS stock?
ChartMill assigns a fundamental rating of 6 / 10 to UPS.
What is the valuation status for UPS stock?
ChartMill assigns a valuation rating of 6 / 10 to UNITED PARCEL SERVICE-CL B (UPS). This can be considered as Fairly Valued.
Can you provide the profitability details for UNITED PARCEL SERVICE-CL B?
UNITED PARCEL SERVICE-CL B (UPS) has a profitability rating of 8 / 10.
What are the PE and PB ratios of UNITED PARCEL SERVICE-CL B (UPS) stock?
The Price/Earnings (PE) ratio for UNITED PARCEL SERVICE-CL B (UPS) is 15.66 and the Price/Book (PB) ratio is 5.53.
Is the dividend of UNITED PARCEL SERVICE-CL B sustainable?
The dividend rating of UNITED PARCEL SERVICE-CL B (UPS) is 8 / 10 and the dividend payout ratio is 96.88%.