UNITED PARCEL SERVICE-CL B (UPS) Stock Fundamental Analysis
NYSE:UPS • US9113121068
115.96 USD
-0.67 (-0.57%)
At close: Feb 27, 2026
115.584 USD
-0.38 (-0.32%)
After Hours: 2/27/2026, 8:04:00 PM
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 has a decent growth rate and is not valued too expensively. Finally UPS also has an excellent dividend rating. With these ratings, UPS could be worth investigating further for dividend investing!.
1. Profitability
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.
- In the past 5 years UPS always reported a positive cash flow from operatings.
1.2 Ratios
- UPS has a Return On Assets of 7.62%. This is amongst the best in the industry. UPS outperforms 82.61% of its industry peers.
- UPS has a Return On Equity of 34.34%. This is amongst the best in the industry. UPS outperforms 95.65% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.69%, UPS belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for UPS is in line with the industry average of 12.22%.
| Industry Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 6.28%, 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 Profit Margin of UPS has grown nicely.
- 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.
- 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
- UPS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for UPS has been reduced compared to 1 year ago.
- 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.
2.2 Solvency
- UPS has an Altman-Z score of 3.05. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.05, UPS is in the better half of the industry, outperforming 60.87% 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.
- Looking at the Debt to FCF ratio, with a value of 5.06, UPS is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
- UPS has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of UPS (1.45) is worse than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.38
WACC7.72%
2.3 Liquidity
- A Current Ratio of 1.22 indicates that UPS should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.22, UPS is not doing good in the industry: 69.57% 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 Quick ratio of 1.22. This is in the lower half of the industry: UPS underperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
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.
- UPS shows a decrease in Revenue. In the last year, the revenue decreased by -2.65%.
- UPS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.94% yearly.
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.
- The Revenue is expected to grow by 4.13% on average over the next years.
EPS Next Y-0.36%
EPS Next 2Y6.31%
EPS Next 3Y6.72%
EPS Next 5Y10.78%
Revenue Next Year1.35%
Revenue Next 2Y2.81%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 16.20, which indicates a correct valuation of UPS.
- UPS's Price/Earnings ratio is rather cheap when compared to the industry. UPS is cheaper than 82.61% of the companies in the same industry.
- When comparing the Price/Earnings ratio of UPS to the average of the S&P500 Index (27.07), we can say UPS is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 16.25, UPS is valued correctly.
- 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 28.05, UPS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 16.25 |
4.2 Price Multiples
- UPS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UPS is cheaper than 73.91% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of UPS indicates a rather cheap valuation: UPS is cheaper than 95.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.65 | ||
| EV/EBITDA | 10.01 |
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 2Y6.31%
EPS Next 3Y6.72%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.62%, UPS is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.08, UPS pays a better dividend. On top of this UPS pays more dividend than 95.65% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, UPS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
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
5.3 Sustainability
- 96.88% of the earnings are spent on dividend by UPS. This is not a sustainable payout ratio.
- UPS's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP96.88%
EPS Next 2Y6.31%
EPS Next 3Y6.72%
115.96
-0.67 (-0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)01-27 2026-01-27/bmo
Earnings (Next)04-27 2026-04-27/bmo
Inst Owners66.77%
Inst Owner Change5.32%
Ins Owners0.01%
Ins Owner Change-0.75%
Market Cap98.38B
Revenue(TTM)88.66B
Net Income(TTM)5.57B
Analysts72
Price Target116.8 (0.72%)
Short Float %2.07%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
Yearly Dividend6.34
Dividend Growth(5Y)10.1%
DP96.88%
Div Incr Years15
Div Non Decr Years25
Ex-Date02-17 2026-02-17 (1.64)
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)8.36%
PT rev (3m)10.35%
EPS NQ rev (1m)-5.51%
EPS NQ rev (3m)-19.67%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)1.61%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 16.25 | ||
| P/S | 1.11 | ||
| P/FCF | 20.65 | ||
| P/OCF | 11.64 | ||
| P/B | 6.06 | ||
| P/tB | 15.45 | ||
| EV/EBITDA | 10.01 |
EPS(TTM)7.16
EY6.17%
EPS(NY)7.13
Fwd EY6.15%
FCF(TTM)5.62
FCFY4.84%
OCF(TTM)9.96
OCFY8.59%
SpS104.51
BVpS19.13
TBVpS7.51
PEG (NY)N/A
PEG (5Y)N/A
Graham Number55.51
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.05 |
F-Score6
WACC7.72%
ROIC/WACC1.38
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-0.36%
EPS Next 2Y6.31%
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 Year1.35%
Revenue Next 2Y2.81%
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 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.
How profitable is UNITED PARCEL SERVICE-CL B (UPS) stock?
UNITED PARCEL SERVICE-CL B (UPS) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for UPS stock?
The Price/Earnings (PE) ratio for UNITED PARCEL SERVICE-CL B (UPS) is 16.2 and the Price/Book (PB) ratio is 6.06.
What is the expected EPS growth for UNITED PARCEL SERVICE-CL B (UPS) stock?
The Earnings per Share (EPS) of UNITED PARCEL SERVICE-CL B (UPS) is expected to decline by -0.36% in the next year.