UNITED PARCEL SERVICE-CL B (UPS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UPS - US9113121068 - Common Stock
106.91 USD
-1.71 (-1.57%)
107.07 USD
+0.16 (+0.15%)
Overall UPS gets a fundamental rating of 6 out of 10. We evaluated UPS against 23 industry peers in the Air Freight & Logistics industry. UPS has an excellent profitability rating, but there are some minor concerns on its financial health. UPS is valued correctly, but it does not seem to be growing. 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.
- Each year in the past 5 years UPS had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.71%, UPS belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
- With an excellent Return On Equity value of 34.77%, 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 (11.40%) is better than 86.96% of its industry peers.
- UPS had an Average Return On Invested Capital over the past 3 years of 15.05%. This is above the industry average of 12.36%.
| 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
- With an excellent Profit Margin value of 6.15%, UPS belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
- UPS's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 9.29%, 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.
- With an excellent Gross Margin value of 82.44%, UPS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- 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.
- Compared to 1 year ago, UPS has about the same amount of shares outstanding.
- Compared to 5 years ago, UPS has less shares outstanding
- Compared to 1 year ago, UPS has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.09 indicates that UPS is not in any danger for bankruptcy at the moment.
- UPS has a Altman-Z score (3.09) which is comparable to the rest of the industry.
- The Debt to FCF ratio of UPS is 5.64, which is a neutral value as it means it would take UPS, 5.64 years of fcf income to pay off all of its debts.
- UPS's Debt to FCF ratio of 5.64 is fine compared to the rest of the industry. UPS outperforms 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.
- With a Debt to Equity ratio value of 1.51, UPS is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 5.64 | ||
| Altman-Z | 3.09 |
ROIC/WACC1.47
WACC7.75%
2.3 Liquidity
- A Current Ratio of 1.30 indicates that UPS should not have too much problems paying its short term obligations.
- The Current ratio of UPS (1.30) is worse than 69.57% of its industry peers.
- UPS has a Quick Ratio of 1.30. This is a normal value and indicates that UPS is financially healthy and should not expect problems in meeting its short term obligations.
- UPS's Quick ratio of 1.30 is on the low side compared to the rest of the industry. UPS is outperformed by 65.22% of its industry peers.
| 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.
- 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.
- Looking at the last year, UPS shows a decrease in Revenue. The Revenue has decreased by -1.33% in the last year.
- 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-9.62%
EPS Next 2Y-3.4%
EPS Next 3Y1.28%
EPS Next 5Y4.95%
Revenue Next Year-3.4%
Revenue Next 2Y-1.84%
Revenue Next 3Y0.02%
Revenue Next 5Y2.05%
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
- With a Price/Earnings ratio of 14.20, UPS is valued correctly.
- 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 rather cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 14.82, which indicates a correct valuation of UPS.
- Based on the Price/Forward Earnings ratio, UPS is valued cheaper than 86.96% of the companies in the same industry.
- UPS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.2 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, UPS is valued a bit 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 86.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.63 | ||
| EV/EBITDA | 9.18 |
4.3 Compensation for Growth
- UPS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)27.01
EPS Next 2Y-3.4%
EPS Next 3Y1.28%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.13%, UPS is a good candidate for dividend investing.
- UPS's Dividend Yield is rather good when compared to the industry average which is at 1.14. 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
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.
- The dividend of UPS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP98.06%
EPS Next 2Y-3.4%
EPS Next 3Y1.28%
106.91
-1.71 (-1.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-03 2026-02-03/amc
Inst Owners66.77%
Inst Owner Change0.16%
Ins Owners0.01%
Ins Owner Change0.98%
Market Cap90.70B
Revenue(TTM)89.48B
Net Income(TTM)5.50B
Analysts72.94
Price Target106.08 (-0.78%)
Short Float %2.05%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
Yearly Dividend6.33
Dividend Growth(5Y)11.17%
DP98.06%
Div Incr Years15
Div Non Decr Years25
Ex-DateN/A
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)0.21%
PT rev (3m)1.07%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)4.66%
EPS NY rev (1m)0.13%
EPS NY rev (3m)6.21%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.2 | ||
| Fwd PE | 14.82 | ||
| P/S | 1.01 | ||
| P/FCF | 20.63 | ||
| P/OCF | 10.72 | ||
| P/B | 5.73 | ||
| P/tB | 12 | ||
| EV/EBITDA | 9.18 |
EPS(TTM)7.53
EY7.04%
EPS(NY)7.21
Fwd EY6.75%
FCF(TTM)5.18
FCFY4.85%
OCF(TTM)9.98
OCFY9.33%
SpS105.47
BVpS18.65
TBVpS8.91
PEG (NY)N/A
PEG (5Y)27.01
Graham Number56.21
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 | 3.09 |
F-Score6
WACC7.75%
ROIC/WACC1.47
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-9.62%
EPS Next 2Y-3.4%
EPS Next 3Y1.28%
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-3.4%
Revenue Next 2Y-1.84%
Revenue Next 3Y0.02%
Revenue Next 5Y2.05%
EBIT growth 1Y3.02%
EBIT growth 3Y-12.41%
EBIT growth 5Y1.92%
EBIT Next Year38.49%
EBIT Next 3Y15.23%
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 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 14.2 and the Price/Book (PB) ratio is 5.73.
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 -9.62% in the next year.