UNITED PARCEL SERVICE-CL B (UPS) Stock Fundamental Analysis
USA - NYSE:UPS - US9113121068 - Common Stock
84.105 USD
-0.24 (-0.29%)
UPS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 23 industry peers in the Air Freight & Logistics industry. UPS scores excellent on profitability, but there are some minor concerns on its financial health. UPS is not valued too expensively and it also shows a decent growth rate. UPS also has an excellent dividend rating. These ratings would make UPS suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year UPS was profitable.
UPS had a positive operating cash flow in the past year.
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.
1.2 Ratios
The Return On Assets of UPS (8.08%) is better than 82.61% of its industry peers.
UPS's Return On Equity of 36.38% is amongst the best of the industry. UPS outperforms 91.30% of its industry peers.
The Return On Invested Capital of UPS (11.69%) is better than 86.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UPS is above the industry average of 12.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.08% | ||
| ROE | 36.38% | ||
| ROIC | 11.69% |
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 6.34%. This is amongst the best in the industry. UPS outperforms 86.96% of its industry peers.
UPS's Profit Margin has been stable in the last couple of years.
UPS has a Operating Margin of 9.41%. This is amongst the best in the industry. UPS outperforms 86.96% of its industry peers.
UPS's Operating Margin has declined in the last couple of years.
UPS's Gross Margin of 81.60% 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 | 9.41% | ||
| PM (TTM) | 6.34% | ||
| GM | 81.6% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), UPS is creating value.
UPS has about the same amout of shares outstanding than it did 1 year ago.
UPS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for UPS has been reduced compared to a year ago.
2.2 Solvency
UPS has an Altman-Z score of 2.92. 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.
The Altman-Z score of UPS (2.92) is comparable to the rest of the industry.
The Debt to FCF ratio of UPS is 6.97, which is on the high side as it means it would take UPS, 6.97 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.97, UPS is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
UPS has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
UPS has a Debt to Equity ratio of 1.51. This is in the lower half of the industry: UPS underperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 6.97 | ||
| Altman-Z | 2.92 |
ROIC/WACC1.58
WACC7.38%
2.3 Liquidity
UPS has a Current Ratio of 1.32. 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 (1.32) is comparable to the rest of the industry.
UPS has a Quick Ratio of 1.32. This is a normal value and indicates that UPS is financially healthy and should not expect problems in meeting its short term obligations.
UPS has a Quick ratio of 1.32. This is comparable to the rest of the industry: UPS outperforms 52.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.99% over the past year.
Measured over the past 5 years, UPS shows a small growth in Earnings Per Share. The EPS has been growing by 0.53% on average per year.
UPS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.91%.
Measured over the past years, UPS shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
EPS 1Y (TTM)3.99%
EPS 3Y-13.95%
EPS 5Y0.53%
EPS Q2Q%-13.41%
Revenue 1Y (TTM)0.91%
Revenue growth 3Y-2.18%
Revenue growth 5Y4.21%
Sales Q2Q%-2.74%
3.2 Future
The Earnings Per Share is expected to grow by 6.93% on average over the next years.
Based on estimates for the next years, UPS will show a small growth in Revenue. The Revenue will grow by 2.33% on average per year.
EPS Next Y-14.73%
EPS Next 2Y-2.51%
EPS Next 3Y1.83%
EPS Next 5Y6.93%
Revenue Next Year-3.93%
Revenue Next 2Y-1.81%
Revenue Next 3Y0%
Revenue Next 5Y2.33%
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 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 11.14 indicates a reasonable valuation of UPS.
Compared to the rest of the industry, the Price/Earnings ratio of UPS indicates a rather cheap valuation: UPS is cheaper than 86.96% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, UPS is valued rather cheaply.
UPS is valuated reasonably with a Price/Forward Earnings ratio of 11.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UPS indicates a rather cheap valuation: UPS is cheaper than 91.30% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, UPS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 11.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UPS indicates a somewhat cheap valuation: UPS is cheaper than 73.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, UPS is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.09 | ||
| EV/EBITDA | 7.38 |
4.3 Compensation for Growth
UPS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)21.19
EPS Next 2Y-2.51%
EPS Next 3Y1.83%
5. Dividend
5.1 Amount
UPS has a Yearly Dividend Yield of 7.75%, which is a nice return.
UPS's Dividend Yield is rather good when compared to the industry average which is at 3.75. UPS pays more dividend than 95.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, UPS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.75% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.17%
Div Incr Years15
Div Non Decr Years25
5.3 Sustainability
94.15% of the earnings are spent on dividend by UPS. This is not a sustainable payout ratio.
UPS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP94.15%
EPS Next 2Y-2.51%
EPS Next 3Y1.83%
NYSE:UPS (9/15/2025, 2:43:09 PM)
84.105
-0.24 (-0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners70.62%
Inst Owner Change-1.26%
Ins Owners0%
Ins Owner Change1.07%
Market Cap71.28B
Analysts73.33
Price Target106.45 (26.57%)
Short Float %2.69%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.75% |
Yearly Dividend6.33
Dividend Growth(5Y)11.17%
DP94.15%
Div Incr Years15
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.6%
Min EPS beat(2)-1.66%
Max EPS beat(2)6.85%
EPS beat(4)3
Avg EPS beat(4)4.98%
Min EPS beat(4)-1.66%
Max EPS beat(4)7.57%
EPS beat(8)5
Avg EPS beat(8)2.56%
EPS beat(12)7
Avg EPS beat(12)1.99%
EPS beat(16)11
Avg EPS beat(16)3.24%
Revenue beat(2)2
Avg Revenue beat(2)1.04%
Min Revenue beat(2)0.72%
Max Revenue beat(2)1.36%
Revenue beat(4)2
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)1.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.25%
Revenue beat(12)2
Avg Revenue beat(12)-1.93%
Revenue beat(16)5
Avg Revenue beat(16)-1.17%
PT rev (1m)-1.62%
PT rev (3m)-8.6%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-16.18%
EPS NY rev (1m)-6.48%
EPS NY rev (3m)-7.18%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 11.45 | ||
| P/S | 0.79 | ||
| P/FCF | 20.09 | ||
| P/OCF | 9.52 | ||
| P/B | 4.53 | ||
| P/tB | 9.39 | ||
| EV/EBITDA | 7.38 |
EPS(TTM)7.55
EY8.98%
EPS(NY)7.35
Fwd EY8.74%
FCF(TTM)4.19
FCFY4.98%
OCF(TTM)8.84
OCFY10.51%
SpS106.56
BVpS18.58
TBVpS8.95
PEG (NY)N/A
PEG (5Y)21.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.08% | ||
| ROE | 36.38% | ||
| ROCE | 14.99% | ||
| ROIC | 11.69% | ||
| ROICexc | 13.15% | ||
| ROICexgc | 15.69% | ||
| OM | 9.41% | ||
| PM (TTM) | 6.34% | ||
| GM | 81.6% | ||
| FCFM | 3.93% |
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%
ROICexcg growth 3Y-16.14%
ROICexcg 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-Score7
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 6.97 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 107.3% | ||
| Cap/Sales | 4.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.54% | ||
| Profit Quality | 61.94% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.92 |
F-Score7
WACC7.38%
ROIC/WACC1.58
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)3.99%
EPS 3Y-13.95%
EPS 5Y0.53%
EPS Q2Q%-13.41%
EPS Next Y-14.73%
EPS Next 2Y-2.51%
EPS Next 3Y1.83%
EPS Next 5Y6.93%
Revenue 1Y (TTM)0.91%
Revenue growth 3Y-2.18%
Revenue growth 5Y4.21%
Sales Q2Q%-2.74%
Revenue Next Year-3.93%
Revenue Next 2Y-1.81%
Revenue Next 3Y0%
Revenue Next 5Y2.33%
EBIT growth 1Y14.45%
EBIT growth 3Y-12.41%
EBIT growth 5Y1.92%
EBIT Next Year32.62%
EBIT Next 3Y15.39%
EBIT Next 5Y11.63%
FCF growth 1Y-42.79%
FCF growth 3Y-16.86%
FCF growth 5Y22.43%
OCF growth 1Y-34.34%
OCF growth 3Y-12.3%
OCF growth 5Y3.22%