UNITED PARCEL SERVICE-CL B (UPS) Stock Fundamental Analysis
USA - NYSE:UPS - US9113121068 - Common Stock
94.1859 USD
-0.15 (-0.16%)
Taking everything into account, UPS scores 6 out of 10 in our fundamental rating. UPS was compared to 23 industry peers in the Air Freight & Logistics industry. While UPS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. UPS is valued quite cheap, but it does not seem to be growing. Finally UPS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
UPS had positive earnings in the past year.
In the past year UPS had a positive cash flow from operations.
In the past 5 years UPS has always been profitable.
Each year in the past 5 years UPS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.71%, UPS belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
UPS's Return On Equity of 34.77% is amongst the best of the industry. UPS outperforms 95.65% of its industry peers.
The Return On Invested Capital of UPS (11.40%) is better than 86.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UPS is above the industry average of 11.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 34.77% | ||
| ROIC | 11.4% |
ROA(3y)11.32%
ROA(5y)10.94%
ROE(3y)43.9%
ROE(5y)85.31%
ROIC(3y)15.05%
ROIC(5y)15.77%
1.3 Margins
UPS has a Profit Margin of 6.15%. 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 remained more or less at the same level.
UPS's Operating Margin of 9.29% is amongst the best of the industry. UPS outperforms 91.30% of its industry peers.
In the last couple of years the Operating Margin of UPS has declined.
UPS's Gross Margin of 82.44% is amongst the best of the industry. UPS outperforms 100.00% of its industry peers.
UPS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.29% | ||
| PM (TTM) | 6.15% | ||
| GM | 82.44% |
OM growth 3Y-10.47%
OM growth 5Y-2.2%
PM growth 3Y-21.75%
PM growth 5Y1.16%
GM growth 3Y1.64%
GM growth 5Y0.43%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so UPS is creating value.
The number of shares outstanding for UPS remains at a similar level compared to 1 year ago.
UPS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, UPS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.98 indicates that UPS is not a great score, but indicates only limited risk for bankruptcy at the moment.
UPS's Altman-Z score of 2.98 is in line compared to the rest of the industry. UPS outperforms 56.52% of its industry peers.
UPS has a debt to FCF ratio of 5.64. This is a neutral value as UPS would need 5.64 years to pay back of all of its debts.
UPS has a better Debt to FCF ratio (5.64) than 73.91% of its industry peers.
A Debt/Equity ratio of 1.51 is on the high side and indicates that UPS has dependencies on debt financing.
UPS has a Debt to Equity ratio of 1.51. This is in the lower half of the industry: UPS underperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 5.64 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.51
WACC7.57%
2.3 Liquidity
A Current Ratio of 1.30 indicates that UPS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.30, UPS is doing worse than 65.22% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that UPS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.30, UPS is doing worse than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.07% over the past year.
UPS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.53% yearly.
UPS shows a decrease in Revenue. In the last year, the revenue decreased by -1.33%.
The Revenue has been growing slightly by 4.21% on average over the past years.
EPS 1Y (TTM)1.07%
EPS 3Y-13.95%
EPS 5Y0.53%
EPS Q2Q%-1.14%
Revenue 1Y (TTM)-1.33%
Revenue growth 3Y-2.18%
Revenue growth 5Y4.21%
Sales Q2Q%-3.73%
3.2 Future
Based on estimates for the next years, UPS will show a small growth in Earnings Per Share. The EPS will grow by 4.95% on average per year.
Based on estimates for the next years, UPS will show a small growth in Revenue. The Revenue will grow by 2.05% on average per year.
EPS Next Y-10.07%
EPS Next 2Y-3.48%
EPS Next 3Y1.34%
EPS Next 5Y4.95%
Revenue Next Year-3.49%
Revenue Next 2Y-1.72%
Revenue Next 3Y0.09%
Revenue Next 5Y2.05%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.51 indicates a correct valuation of UPS.
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 cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.08, UPS is valued correctly.
UPS's Price/Forward Earnings ratio is rather cheap when compared to the industry. UPS is cheaper than 86.96% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UPS to the average of the S&P500 Index (34.59), we can say UPS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 13.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UPS is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
82.61% of the companies in the same industry are more expensive than UPS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.16 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
UPS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)23.8
EPS Next 2Y-3.48%
EPS Next 3Y1.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.84%, UPS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.54, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
5.2 History
The dividend of UPS is nicely growing with an annual growth rate of 11.17%!
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)11.17%
Div Incr Years15
Div Non Decr Years25
5.3 Sustainability
UPS pays out 98.06% of its income as dividend. This is not a sustainable payout ratio.
UPS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP98.06%
EPS Next 2Y-3.48%
EPS Next 3Y1.34%
NYSE:UPS (11/17/2025, 10:07:06 AM)
94.1859
-0.15 (-0.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners69.63%
Inst Owner Change-4.8%
Ins Owners0.01%
Ins Owner Change2.86%
Market Cap79.83B
Revenue(TTM)89.48B
Net Income(TTM)5.50B
Analysts72.57
Price Target100.64 (6.85%)
Short Float %2.72%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.84% |
Yearly Dividend6.33
Dividend Growth(5Y)11.17%
DP98.06%
Div Incr Years15
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.5%
Min EPS beat(2)-1.66%
Max EPS beat(2)32.65%
EPS beat(4)3
Avg EPS beat(4)11.35%
Min EPS beat(4)-1.66%
Max EPS beat(4)32.65%
EPS beat(8)5
Avg EPS beat(8)6.38%
EPS beat(12)7
Avg EPS beat(12)4.37%
EPS beat(16)11
Avg EPS beat(16)4.94%
Revenue beat(2)2
Avg Revenue beat(2)1.25%
Min Revenue beat(2)0.72%
Max Revenue beat(2)1.78%
Revenue beat(4)3
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)1.78%
Revenue beat(8)3
Avg Revenue beat(8)-0.68%
Revenue beat(12)3
Avg Revenue beat(12)-1.65%
Revenue beat(16)5
Avg Revenue beat(16)-1.17%
PT rev (1m)-4.11%
PT rev (3m)-6.99%
EPS NQ rev (1m)4.27%
EPS NQ rev (3m)3.95%
EPS NY rev (1m)5.68%
EPS NY rev (3m)-1.37%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 13.08 | ||
| P/S | 0.89 | ||
| P/FCF | 18.16 | ||
| P/OCF | 9.43 | ||
| P/B | 5.05 | ||
| P/tB | 10.56 | ||
| EV/EBITDA | 8.28 |
EPS(TTM)7.53
EY7.99%
EPS(NY)7.2
Fwd EY7.65%
FCF(TTM)5.19
FCFY5.51%
OCF(TTM)9.99
OCFY10.6%
SpS105.58
BVpS18.67
TBVpS8.92
PEG (NY)N/A
PEG (5Y)23.8
Graham Number56.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 34.77% | ||
| ROCE | 14.62% | ||
| ROIC | 11.4% | ||
| ROICexc | 12.94% | ||
| ROICexgc | 15.5% | ||
| OM | 9.29% | ||
| PM (TTM) | 6.15% | ||
| GM | 82.44% | ||
| FCFM | 4.91% |
ROA(3y)11.32%
ROA(5y)10.94%
ROE(3y)43.9%
ROE(5y)85.31%
ROIC(3y)15.05%
ROIC(5y)15.77%
ROICexc(3y)17.25%
ROICexc(5y)18.55%
ROICexgc(3y)20.55%
ROICexgc(5y)21.95%
ROCE(3y)19.3%
ROCE(5y)20.23%
ROICexgc growth 3Y-16.14%
ROICexgc growth 5Y-1.33%
ROICexc growth 3Y-16.33%
ROICexc growth 5Y-1.47%
OM growth 3Y-10.47%
OM growth 5Y-2.2%
PM growth 3Y-21.75%
PM growth 5Y1.16%
GM growth 3Y1.64%
GM growth 5Y0.43%
F-Score6
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 5.64 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 110.13% | ||
| Cap/Sales | 4.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.5% | ||
| Profit Quality | 79.9% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.98 |
F-Score6
WACC7.57%
ROIC/WACC1.51
Cap/Depr(3y)137.05%
Cap/Depr(5y)150.75%
Cap/Sales(3y)4.91%
Cap/Sales(5y)5.08%
Profit Quality(3y)88.01%
Profit Quality(5y)144.74%
High Growth Momentum
Growth
EPS 1Y (TTM)1.07%
EPS 3Y-13.95%
EPS 5Y0.53%
EPS Q2Q%-1.14%
EPS Next Y-10.07%
EPS Next 2Y-3.48%
EPS Next 3Y1.34%
EPS Next 5Y4.95%
Revenue 1Y (TTM)-1.33%
Revenue growth 3Y-2.18%
Revenue growth 5Y4.21%
Sales Q2Q%-3.73%
Revenue Next Year-3.49%
Revenue Next 2Y-1.72%
Revenue Next 3Y0.09%
Revenue Next 5Y2.05%
EBIT growth 1Y3.02%
EBIT growth 3Y-12.41%
EBIT growth 5Y1.92%
EBIT Next Year31.84%
EBIT Next 3Y15.35%
EBIT Next 5Y10.54%
FCF growth 1Y-20.92%
FCF growth 3Y-16.86%
FCF growth 5Y22.43%
OCF growth 1Y-24.16%
OCF growth 3Y-12.3%
OCF growth 5Y3.22%
UNITED PARCEL SERVICE-CL B / UPS FAQ
What is the fundamental rating for UPS stock?
ChartMill assigns a fundamental rating of 6 / 10 to UPS.
What is the valuation status of UNITED PARCEL SERVICE-CL B (UPS) stock?
ChartMill assigns a valuation rating of 7 / 10 to UNITED PARCEL SERVICE-CL B (UPS). This can be considered as Undervalued.
How profitable is UNITED PARCEL SERVICE-CL B (UPS) stock?
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 12.51 and the Price/Book (PB) ratio is 5.05.
Can you provide the expected EPS growth for UPS stock?
The Earnings per Share (EPS) of UNITED PARCEL SERVICE-CL B (UPS) is expected to decline by -10.07% in the next year.