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

NYSE:UPS • US9113121068

Current stock price

97.78 USD
-0.13 (-0.13%)
Last:

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.
  • Each year in the past 5 years UPS has been profitable.
  • Each year in the past 5 years UPS had a positive operating cash flow.
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

  • UPS's Return On Assets of 7.62% is amongst the best of the industry. UPS outperforms 82.61% of its industry peers.
  • With an excellent Return On Equity value of 34.34%, UPS belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
  • The Return On Invested Capital of UPS (10.69%) is better than 86.96% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for UPS is in line with the industry average of 11.93%.
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's Profit Margin of 6.28% is amongst the best of the industry. UPS outperforms 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.
  • UPS's Operating Margin has declined in the last couple of years.
  • UPS has a Gross Margin of 83.19%. This is amongst the best in the industry. UPS outperforms 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.
  • Compared to 5 years ago, UPS has less shares outstanding
  • 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

  • UPS has an Altman-Z score of 2.89. 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.
  • UPS has a Altman-Z score (2.89) 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 amongst the best in the industry. UPS outperforms 82.61% 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.
  • With a Debt to Equity ratio value of 1.45, UPS is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.45
Debt/FCF 5.06
Altman-Z 2.89
ROIC/WACC1.35
WACC7.9%
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 has a Current ratio of 1.22. This is in the lower half of the industry: UPS underperforms 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%.
  • The Earnings Per Share has been decreasing by -2.72% on average over the past years.
  • 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

  • Based on estimates for the next years, UPS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.78% on average per year.
  • Based on estimates for the next years, UPS will show a small growth in Revenue. The Revenue will grow by 4.13% on average per year.
EPS Next Y-0.31%
EPS Next 2Y6.35%
EPS Next 3Y6.72%
EPS Next 5Y10.78%
Revenue Next Year1.24%
Revenue Next 2Y2.76%
Revenue Next 3Y2.87%
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.
  • 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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6

4. UPS Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.66, UPS is valued correctly.
  • Based on the Price/Earnings ratio, UPS is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of UPS to the average of the S&P500 Index (25.51), we can say UPS is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 13.70, UPS is valued correctly.
  • Based on the Price/Forward Earnings ratio, UPS is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
  • UPS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.66
Fwd PE 13.7
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 cheaper than 86.96% of the companies in the same industry.
  • 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 17.42
EV/EBITDA 8.7
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

  • The excellent profitability rating of UPS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.35%
EPS Next 3Y6.72%

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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 6.67%, which is a nice return.
  • UPS's Dividend Yield is rather good when compared to the industry average which is at 1.17. UPS pays more dividend than 95.65% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, UPS pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.67%

5.2 History

  • The dividend of UPS is nicely growing with an annual growth rate of 10.10%!
  • UPS has paid a dividend for at least 10 years, which is 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 Years15
Div Non Decr Years25
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 2Y6.35%
EPS Next 3Y6.72%
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 (4/2/2026, 11:09:53 AM)

97.78

-0.13 (-0.13%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)01-27
Earnings (Next)04-27
Inst Owners69.89%
Inst Owner Change5.57%
Ins Owners0.01%
Ins Owner Change-0.75%
Market Cap83.02B
Revenue(TTM)88.66B
Net Income(TTM)5.57B
Analysts72
Price Target116.69 (19.34%)
Short Float %2.5%
Short Ratio2.69
Dividend
Industry RankSector Rank
Dividend Yield 6.67%
Yearly Dividend6.34
Dividend Growth(5Y)10.1%
DP96.88%
Div Incr Years15
Div Non Decr Years25
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)-3.3%
EPS NQ rev (3m)-22.13%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-1.04%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)1.56%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)1.6%
Valuation
Industry RankSector Rank
PE 13.66
Fwd PE 13.7
P/S 0.94
P/FCF 17.42
P/OCF 9.83
P/B 5.12
P/tB 13.04
EV/EBITDA 8.7
EPS(TTM)7.16
EY7.32%
EPS(NY)7.14
Fwd EY7.3%
FCF(TTM)5.61
FCFY5.74%
OCF(TTM)9.95
OCFY10.18%
SpS104.42
BVpS19.11
TBVpS7.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number55.49
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 2.89
F-Score6
WACC7.9%
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-0.31%
EPS Next 2Y6.35%
EPS Next 3Y6.72%
EPS Next 5Y10.78%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y-4.04%
Revenue growth 5Y0.94%
Sales Q2Q%-3.25%
Revenue Next Year1.24%
Revenue Next 2Y2.76%
Revenue Next 3Y2.87%
Revenue Next 5Y4.13%
EBIT growth 1Y-7.88%
EBIT growth 3Y-15.62%
EBIT growth 5Y-1.44%
EBIT Next Year47.99%
EBIT Next 3Y18.73%
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 13.66 and the Price/Book (PB) ratio is 5.12.


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%.