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

NYSE:UPS • US9113121068

Current stock price

108.24 USD
+1.22 (+1.14%)
At close:
108.05 USD
-0.19 (-0.18%)
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

  • UPS had positive earnings in the past year.
  • UPS had a positive operating cash flow in the past year.
  • Each year in the past 5 years UPS has been profitable.
  • In the past 5 years UPS always reported a positive cash flow from operatings.
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

  • Looking at the Return On Assets, with a value of 7.62%, UPS is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
  • UPS has a better Return On Equity (34.34%) than 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.
  • The Average Return On Invested Capital over the past 3 years for UPS is above the industry average of 9.41%.
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 better Profit Margin (6.28%) than 91.30% of its industry peers.
  • UPS's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 8.91%, UPS belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
  • In the last couple of years the Operating Margin of UPS has declined.
  • With an excellent Gross Margin value of 83.19%, UPS belongs to the best 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 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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UPS is creating some value.
  • UPS has less shares outstanding than it did 1 year ago.
  • UPS has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, UPS has a worse debt to assets ratio.
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 2.97 indicates that UPS is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • UPS has a Altman-Z score (2.97) which 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 Debt to FCF ratio of 5.06. This is in the better half of the industry: UPS outperforms 78.26% of its industry peers.
  • A Debt/Equity ratio of 1.45 is on the high side and indicates that UPS has dependencies on debt financing.
  • UPS has a worse Debt to Equity ratio (1.45) than 78.26% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.45
Debt/FCF 5.06
Altman-Z 2.97
ROIC/WACC1.34
WACC7.95%
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

  • UPS has a Current 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 Current ratio of UPS (1.22) is worse than 69.57% 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 has a worse Quick ratio (1.22) than 69.57% 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

  • UPS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.37%.
  • UPS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.72% yearly.
  • Looking at the last year, UPS shows a decrease in Revenue. The Revenue has decreased by -2.65% in the last year.
  • The Revenue has been growing slightly by 0.94% on average over the past years.
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 Year1.43%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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Find the best growth stocksShow best growing peers

6

4. UPS Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 15.12, the valuation of UPS can be described as correct.
  • Based on the Price/Earnings ratio, UPS is valued cheaper than 86.96% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.35. UPS is valued slightly cheaper when compared to this.
  • UPS is valuated correctly with a Price/Forward Earnings ratio of 15.23.
  • 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 22.23, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.12
Fwd PE 15.23
UPS Price Earnings VS Forward Price EarningsUPS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, UPS is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
  • UPS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UPS is cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 19.3
EV/EBITDA 9.37
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

  • With a Yearly Dividend Yield of 6.09%, UPS is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.12, UPS pays a better dividend. On top of this UPS pays more dividend than 95.65% of the companies listed in the same industry.
  • UPS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 6.09%

5.2 History

  • On average, the dividend of UPS grows each year by 10.10%, which is quite nice.
  • UPS has been paying a dividend for at least 10 years, so it has a reliable track record.
  • UPS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
  • The dividend of UPS is growing around the same rate as the earnings are growing. If this keeps up 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 (4/27/2026, 5:50:51 PM)

After market: 108.05 -0.19 (-0.18%)

108.24

+1.22 (+1.14%)

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-0.31%
Ins Owners0.01%
Ins Owner Change-0.75%
Market Cap91.97B
Revenue(TTM)88.66B
Net Income(TTM)5.57B
Analysts72
Price Target116.33 (7.47%)
Short Float %2.36%
Short Ratio2.7
Dividend
Industry RankSector Rank
Dividend Yield 6.09%
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)-0.4%
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 RankSector Rank
PE 15.12
Fwd PE 15.23
P/S 1.04
P/FCF 19.3
P/OCF 10.88
P/B 5.67
P/tB 14.44
EV/EBITDA 9.37
EPS(TTM)7.16
EY6.61%
EPS(NY)7.11
Fwd EY6.57%
FCF(TTM)5.61
FCFY5.18%
OCF(TTM)9.95
OCFY9.19%
SpS104.35
BVpS19.1
TBVpS7.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number55.4679 (-48.75%)
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 2.97
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)-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 Year1.43%
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 15.12 and the Price/Book (PB) ratio is 5.67.


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%.