UNITED PARCEL SERVICE-CL B (UPS) Fundamental Analysis & Valuation

NYSE:UPS • US9113121068

Current stock price

106.44 USD
+1.38 (+1.31%)
At close:
106.471 USD
+0.03 (+0.03%)
After Hours:

This UPS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. UPS Profitability Analysis

1.1 Basic Checks

  • In the past year UPS was profitable.
  • In the past year UPS had a positive cash flow from operations.
  • UPS had positive earnings in each of the past 5 years.
  • UPS had a positive operating cash flow in each of the past 5 years.
UPS Yearly Net Income VS EBIT VS OCF VS FCFUPS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

1.2 Ratios

  • With a decent Return On Assets value of 7.62%, UPS is doing good in the industry, outperforming 78.26% of the companies in the same industry.
  • UPS's Return On Equity of 34.34% is amongst the best of the industry. UPS outperforms 95.65% of its industry peers.
  • With an excellent Return On Invested Capital value of 10.69%, UPS belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for UPS is above the industry average of 9.36%.
Industry RankSector 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%
UPS Yearly ROA, ROE, ROICUPS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200 400 600 800

1.3 Margins

  • UPS has a Profit Margin of 6.28%. This is amongst the best in the industry. UPS outperforms 91.30% of its industry peers.
  • UPS's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 8.91%, UPS belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
  • UPS's Operating Margin has declined in the last couple of years.
  • The Gross Margin of UPS (83.19%) is better than 100.00% of its industry peers.
  • UPS's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
UPS Yearly Profit, Operating, Gross MarginsUPS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. UPS Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UPS is still creating some value.
  • UPS has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for UPS has been reduced compared to 5 years ago.
  • The debt/assets ratio for UPS is higher compared to a year ago.
UPS Yearly Shares OutstandingUPS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
UPS Yearly Total Debt VS Total AssetsUPS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • An Altman-Z score of 2.95 indicates that UPS is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • UPS has a Altman-Z score (2.95) which is in line with its industry peers.
  • 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 Debt to FCF ratio of 5.06. This is in the better half of the industry: UPS outperforms 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 has a Debt to Equity ratio of 1.45. This is amonst the worse of the industry: UPS underperforms 82.61% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.45
Debt/FCF 5.06
Altman-Z 2.95
ROIC/WACC1.35
WACC7.89%
UPS Yearly LT Debt VS Equity VS FCFUPS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B

2.3 Liquidity

  • A Current Ratio of 1.22 indicates that UPS should not have too much problems paying its short term obligations.
  • UPS's Current ratio of 1.22 is on the low side compared to the rest of the industry. UPS is outperformed by 73.91% of its industry peers.
  • A Quick Ratio of 1.22 indicates that UPS should not have too much problems paying its short term obligations.
  • UPS's Quick ratio of 1.22 is on the low side compared to the rest of the industry. UPS is outperformed by 73.91% of its industry peers.
Industry RankSector Rank
Current Ratio 1.22
Quick Ratio 1.22
UPS Yearly Current Assets VS Current LiabilitesUPS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. UPS Growth Analysis

3.1 Past

  • The earnings per share for UPS have decreased by -7.37% 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%.
  • Measured over the past years, UPS shows a small growth in Revenue. The Revenue has been growing by 0.94% on average per year.
EPS 1Y (TTM)-7.37%
EPS 3Y-17.92%
EPS 5Y-2.72%
EPS Q2Q%-13.45%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y-4.04%
Revenue growth 5Y0.94%
Sales Q2Q%-3.25%

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 Year1.26%
Revenue Next 2Y2.71%
Revenue Next 3Y2.74%
Revenue Next 5Y4.13%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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.
UPS Yearly Revenue VS EstimatesUPS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B 80B 100B
UPS Yearly EPS VS EstimatesUPS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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7

4. UPS Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 14.87, UPS is valued correctly.
  • 86.96% of the companies in the same industry are more expensive than UPS, based on the Price/Earnings ratio.
  • UPS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.87, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 14.97 indicates a correct valuation of UPS.
  • 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.
  • The average S&P500 Price/Forward Earnings ratio is at 38.51. UPS is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 14.87
Fwd PE 14.97
UPS Price Earnings VS Forward Price EarningsUPS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 86.96% of the companies in the same industry are more expensive than UPS, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of UPS indicates a rather cheap valuation: UPS is cheaper than 100.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 18.98
EV/EBITDA 9.23
UPS Per share dataUPS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • UPS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.01%
EPS Next 3Y6.26%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. UPS Dividend Analysis

5.1 Amount

  • UPS has a Yearly Dividend Yield of 6.45%, which is a nice return.
  • Compared to an average industry Dividend Yield of 1.17, UPS pays a better dividend. On top of this UPS pays more dividend than 95.65% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, UPS pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.45%

5.2 History

  • On average, the dividend of UPS grows each year by 10.10%, which is quite nice.
  • UPS has paid a dividend for at least 10 years, which is 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
UPS Yearly Dividends per shareUPS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • UPS pays out 96.88% of its income as dividend. 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 Yearly Income VS Free CF VS DividendUPS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B
UPS Dividend Payout.UPS Dividend Payout, showing the Payout Ratio.UPS Dividend Payout.PayoutRetained Earnings

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UPS Fundamentals: All Metrics, Ratios and Statistics

UNITED PARCEL SERVICE-CL B

NYSE:UPS (4/17/2026, 8:04:00 PM)

After market: 106.471 +0.03 (+0.03%)

106.44

+1.38 (+1.31%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)01-27
Earnings (Next)04-28
Inst Owners69.68%
Inst Owner Change-0.23%
Ins Owners0.01%
Ins Owner Change-0.75%
Market Cap90.44B
Revenue(TTM)88.66B
Net Income(TTM)5.57B
Analysts72
Price Target116.69 (9.63%)
Short Float %2.36%
Short Ratio2.7
Dividend
Industry RankSector Rank
Dividend Yield 6.45%
Yearly Dividend6.34
Dividend Growth(5Y)10.1%
DP96.88%
Div Incr Years16
Div Non Decr Years26
Ex-Date02-17
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)-0.1%
PT rev (3m)10%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-22.48%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-1.45%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.62%
Valuation
Industry RankSector Rank
PE 14.87
Fwd PE 14.97
P/S 1.02
P/FCF 18.98
P/OCF 10.7
P/B 5.57
P/tB 14.2
EV/EBITDA 9.23
EPS(TTM)7.16
EY6.73%
EPS(NY)7.11
Fwd EY6.68%
FCF(TTM)5.61
FCFY5.27%
OCF(TTM)9.95
OCFY9.34%
SpS104.35
BVpS19.1
TBVpS7.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number55.4679 (-47.89%)
Profitability
Industry RankSector 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 RankSector 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 2.95
F-Score6
WACC7.89%
ROIC/WACC1.35
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)-7.37%
EPS 3Y-17.92%
EPS 5Y-2.72%
EPS Q2Q%-13.45%
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%-3.25%
Revenue Next Year1.26%
Revenue Next 2Y2.71%
Revenue Next 3Y2.74%
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 7 / 10 to UNITED PARCEL SERVICE-CL B (UPS). This can be considered as Undervalued.


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 14.87 and the Price/Book (PB) ratio is 5.57.


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%.