UNITED PARCEL SERVICE-CL B (UPS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UPS - US9113121068 - Common Stock
105.353 USD
+0.13 (+0.13%)
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 has a valuation in line with the averages, but on the other hand it scores bad on growth. 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
UPS had positive earnings in the past year.
In the past year UPS had a positive cash flow from operations.
UPS had positive earnings in each of the past 5 years.
In the past 5 years UPS always reported a positive cash flow from operatings.
1.2 Ratios
UPS has a Return On Assets of 7.71%. This is amongst the best in the industry. UPS outperforms 82.61% of its industry peers.
UPS has a Return On Equity of 34.77%. This is amongst the best in the industry. UPS outperforms 95.65% of its industry peers.
UPS has a better Return On Invested Capital (11.40%) 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 12.36%.
| 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
The Profit Margin of UPS (6.15%) is better than 91.30% of its industry peers.
UPS's Profit Margin has been stable in the last couple of years.
UPS has a better Operating Margin (9.29%) than 91.30% of its industry peers.
In the last couple of years the Operating Margin of UPS has declined.
The Gross Margin of UPS (82.44%) is better than 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
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.
UPS has a better debt/assets ratio than last year.
2.2 Solvency
UPS has an Altman-Z score of 3.06. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
UPS's Altman-Z score of 3.06 is in line compared to the rest of the industry. UPS outperforms 56.52% of its industry peers.
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 has a better Debt to FCF ratio (5.64) than 73.91% of its industry peers.
UPS has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external 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 | 3.06 |
ROIC/WACC1.48
WACC7.68%
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 69.57% 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.
UPS has a worse Quick ratio (1.30) than 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.
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
UPS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.95% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
UPS is valuated correctly with a Price/Earnings ratio of 13.99.
Based on the Price/Earnings ratio, UPS is valued cheaper than 82.61% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.17. UPS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.61, the valuation of UPS can be described as correct.
Based on the Price/Forward Earnings ratio, UPS is valued 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 (23.79), we can say UPS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 14.61 |
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.
86.96% 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 | 20.33 | ||
| EV/EBITDA | 8.94 |
4.3 Compensation for Growth
UPS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)26.62
EPS Next 2Y-3.4%
EPS Next 3Y1.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.61%, UPS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.18, 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 1.94, UPS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.61% |
5.2 History
The dividend of UPS is nicely growing with an annual growth rate of 11.17%!
UPS has been paying a dividend for at least 10 years, so it has 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
98.06% of the earnings are spent on dividend by UPS. 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%
NYSE:UPS (1/7/2026, 2:59:03 PM)
105.353
+0.13 (+0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners66.77%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner Change0.98%
Market Cap89.38B
Revenue(TTM)89.48B
Net Income(TTM)5.50B
Analysts72.94
Price Target106.08 (0.69%)
Short Float %2.05%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.61% |
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 | 13.99 | ||
| Fwd PE | 14.61 | ||
| P/S | 1 | ||
| P/FCF | 20.33 | ||
| P/OCF | 10.56 | ||
| P/B | 5.65 | ||
| P/tB | 11.83 | ||
| EV/EBITDA | 8.94 |
EPS(TTM)7.53
EY7.15%
EPS(NY)7.21
Fwd EY6.85%
FCF(TTM)5.18
FCFY4.92%
OCF(TTM)9.98
OCFY9.47%
SpS105.47
BVpS18.65
TBVpS8.91
PEG (NY)N/A
PEG (5Y)26.62
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 | 3.06 |
F-Score6
WACC7.68%
ROIC/WACC1.48
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 13.99 and the Price/Book (PB) ratio is 5.65.
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.