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

NYSE:UPS • US9113121068

Current stock price

101.7 USD
+0.06 (+0.06%)
At close:
101.77 USD
+0.07 (+0.07%)
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.
  • In the past 5 years UPS has always 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

  • 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.
  • 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.
  • UPS has a better Return On Invested Capital (10.69%) 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 has a Profit Margin of 6.28%. This is amongst the best in the industry. UPS outperforms 91.30% of its industry peers.
  • In the last couple of years the Profit Margin of UPS has grown nicely.
  • 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.
  • 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 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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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.
  • Compared to 1 year ago, UPS has less shares outstanding
  • The number of shares outstanding for UPS has been reduced compared to 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 2.92 indicates that UPS is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a Altman-Z score value of 2.92, UPS perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
  • UPS has a debt to FCF ratio of 5.06. This is a neutral value as UPS would need 5.06 years to pay back of all of its debts.
  • The Debt to FCF ratio of UPS (5.06) is better than 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 82.61% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.45
Debt/FCF 5.06
Altman-Z 2.92
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

  • 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.
  • With a Current ratio value of 1.22, UPS is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
  • 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 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.
  • The Revenue has decreased by -2.65% in the past 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

  • 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-0.72%
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

  • 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.
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

  • A Price/Earnings ratio of 14.20 indicates a correct valuation of UPS.
  • UPS's Price/Earnings ratio is rather cheap when compared to the industry. UPS is cheaper than 86.96% of the companies in the same industry.
  • UPS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.78.
  • UPS is valuated correctly with a Price/Forward Earnings ratio of 14.31.
  • 91.30% of the companies in the same industry are more expensive than UPS, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 23.54. UPS is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.2
Fwd PE 14.31
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

  • 86.96% of the companies in the same industry are more expensive than UPS, based on the Enterprise Value to EBITDA ratio.
  • 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 18.13
EV/EBITDA 8.99
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 2Y6.01%
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.
  • 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.
  • UPS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
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

  • 96.88% of the earnings are spent on dividend by UPS. 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 (4/10/2026, 8:04:00 PM)

After market: 101.77 +0.07 (+0.07%)

101.7

+0.06 (+0.06%)

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 Cap86.41B
Revenue(TTM)88.66B
Net Income(TTM)5.57B
Analysts72
Price Target116.69 (14.74%)
Short Float %2.5%
Short Ratio2.69
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 14.2
Fwd PE 14.31
P/S 0.97
P/FCF 18.13
P/OCF 10.23
P/B 5.33
P/tB 13.57
EV/EBITDA 8.99
EPS(TTM)7.16
EY7.04%
EPS(NY)7.11
Fwd EY6.99%
FCF(TTM)5.61
FCFY5.51%
OCF(TTM)9.95
OCFY9.78%
SpS104.35
BVpS19.1
TBVpS7.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number55.47
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 2.92
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-0.72%
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 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 14.2 and the Price/Book (PB) ratio is 5.33.


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%.