UNITED PARCEL SERVICE-CL B (UPS) Stock Fundamental Analysis
NYSE:UPS - New York Stock Exchange, Inc. - US9113121068 - Common Stock - Currency: USD
Taking everything into account, UPS scores 6 out of 10 in our fundamental rating. UPS was compared to 22 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 valued quite cheap, while showing a decent growth score. This is a good combination! Finally UPS also has an excellent dividend rating. With these ratings, UPS could be worth investigating further for value and 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 better Return On Assets (8.55%) than 81.82% of its industry peers.
UPS's Return On Equity of 37.39% is amongst the best of the industry. UPS outperforms 95.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.73%, UPS belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for UPS is above the industry average of 12.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.55% | ||
| ROE | 37.39% | ||
| ROIC | 12.73% |
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
Looking at the Profit Margin, with a value of 6.44%, UPS belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
UPS's Profit Margin has been stable in the last couple of years.
UPS has a Operating Margin of 9.48%. This is amongst the best in the industry. UPS outperforms 86.36% of its industry peers.
UPS's Operating Margin has declined in the last couple of years.
The Gross Margin of UPS (80.82%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of UPS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.48% | ||
| PM (TTM) | 6.44% | ||
| GM | 80.82% |
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.
The number of shares outstanding for UPS has been reduced compared to 5 years ago.
Compared to 1 year ago, UPS has an improved 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 line with its industry, outperforming 59.09% of the companies in the same industry.
The Debt to FCF ratio of UPS is 3.98, which is a good value as it means it would take UPS, 3.98 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.98, UPS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
UPS has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.25, UPS is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 3.98 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.64
WACC7.74%
2.3 Liquidity
A Current Ratio of 1.09 indicates that UPS should not have too much problems paying its short term obligations.
The Current ratio of UPS (1.09) is worse than 72.73% of its industry peers.
UPS has a Quick Ratio of 1.09. This is a normal value and indicates that UPS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of UPS (1.09) is worse than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
UPS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.99%.
The Earnings Per Share has been growing slightly by 0.53% on average over the past years.
The Revenue has been growing slightly by 0.12% in the past year.
The Revenue has been growing slightly by 4.21% on average over the past years.
EPS 1Y (TTM)3.99%
EPS 3Y-13.95%
EPS 5Y0.53%
EPS Q2Q%-13.41%
Revenue 1Y (TTM)0.12%
Revenue growth 3Y-2.18%
Revenue growth 5Y4.21%
Sales Q2Q%-2.74%
3.2 Future
UPS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.12% yearly.
The Revenue is expected to grow by 2.35% on average over the next years.
EPS Next Y-8.82%
EPS Next 2Y1.28%
EPS Next 3Y3.94%
EPS Next 5Y7.12%
Revenue Next Year-4.45%
Revenue Next 2Y-1.93%
Revenue Next 3Y0.03%
Revenue Next 5Y2.35%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.61, the valuation of UPS can be described as very reasonable.
Based on the Price/Earnings ratio, UPS is valued cheaper than 86.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of UPS to the average of the S&P500 Index (27.91), we can say UPS is valued rather cheaply.
A Price/Forward Earnings ratio of 11.05 indicates a reasonable valuation of UPS.
Based on the Price/Forward Earnings ratio, UPS is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of UPS to the average of the S&P500 Index (37.11), we can say UPS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UPS is valued a bit cheaper than 77.27% of the companies in the same industry.
86.36% 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 | 13.81 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
The excellent profitability rating of UPS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)22.08
EPS Next 2Y1.28%
EPS Next 3Y3.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.46%, UPS is a good candidate for dividend investing.
UPS's Dividend Yield is rather good when compared to the industry average which is at 3.71. UPS pays more dividend than 95.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, UPS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
5.2 History
On average, the dividend of UPS grows each year by 11.18%, which is quite nice.
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)11.18%
Div Incr Years15
Div Non Decr Years25
5.3 Sustainability
92.20% 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.
DP92.2%
EPS Next 2Y1.28%
EPS Next 3Y3.94%
NYSE:UPS (7/30/2025, 3:27:08 PM)
87.64
-3.2 (-3.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners70.46%
Inst Owner Change-0.17%
Ins Owners0%
Ins Owner Change2.17%
Market Cap74.21B
Analysts75
Price Target116.21 (32.6%)
Short Float %2.1%
Short Ratio3.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
Yearly Dividend6.33
Dividend Growth(5Y)11.18%
DP92.2%
Div Incr Years15
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.21%
Min EPS beat(2)6.85%
Max EPS beat(2)7.57%
EPS beat(4)3
Avg EPS beat(4)2.65%
Min EPS beat(4)-10.96%
Max EPS beat(4)7.57%
EPS beat(8)6
Avg EPS beat(8)2.87%
EPS beat(12)8
Avg EPS beat(12)2.39%
EPS beat(16)12
Avg EPS beat(16)3.8%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-1.45%
Max Revenue beat(2)1.36%
Revenue beat(4)1
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-2.62%
Max Revenue beat(4)1.36%
Revenue beat(8)1
Avg Revenue beat(8)-2.03%
Revenue beat(12)1
Avg Revenue beat(12)-2.02%
Revenue beat(16)4
Avg Revenue beat(16)-1.23%
PT rev (1m)-0.22%
PT rev (3m)-7.13%
EPS NQ rev (1m)-1.54%
EPS NQ rev (3m)-12.28%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)-8.56%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 11.05 | ||
| P/S | 0.82 | ||
| P/FCF | 13.81 | ||
| P/OCF | 8.13 | ||
| P/B | 4.74 | ||
| P/tB | 9.68 | ||
| EV/EBITDA | 7.59 |
EPS(TTM)7.55
EY8.61%
EPS(NY)7.93
Fwd EY9.05%
FCF(TTM)6.35
FCFY7.24%
OCF(TTM)10.77
OCFY12.29%
SpS107.36
BVpS18.49
TBVpS9.06
PEG (NY)N/A
PEG (5Y)22.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.55% | ||
| ROE | 37.39% | ||
| ROCE | 16.32% | ||
| ROIC | 12.73% | ||
| ROICexc | 14.08% | ||
| ROICexgc | 16.91% | ||
| OM | 9.48% | ||
| PM (TTM) | 6.44% | ||
| GM | 80.82% | ||
| FCFM | 5.91% |
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%
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-Score6
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 3.98 | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 103.51% | ||
| Cap/Sales | 4.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.52% | ||
| Profit Quality | 91.77% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 3.05 |
F-Score6
WACC7.74%
ROIC/WACC1.64
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-8.82%
EPS Next 2Y1.28%
EPS Next 3Y3.94%
EPS Next 5Y7.12%
Revenue 1Y (TTM)0.12%
Revenue growth 3Y-2.18%
Revenue growth 5Y4.21%
Sales Q2Q%-2.74%
Revenue Next Year-4.45%
Revenue Next 2Y-1.93%
Revenue Next 3Y0.03%
Revenue Next 5Y2.35%
EBIT growth 1Y4.35%
EBIT growth 3Y-12.41%
EBIT growth 5Y1.92%
EBIT Next Year38.11%
EBIT Next 3Y17.41%
EBIT Next 5Y11.9%
FCF growth 1Y-24.85%
FCF growth 3Y-16.86%
FCF growth 5Y22.43%
OCF growth 1Y-23.85%
OCF growth 3Y-12.3%
OCF growth 5Y3.22%