UNITED PARCEL SERVICE-CL B (UPS) Stock Fundamental Analysis
NYSE:UPS • US9113121068
120 USD
+1.3 (+1.1%)
At close: Feb 11, 2026
120.25 USD
+0.25 (+0.21%)
Pre-Market: 2/12/2026, 8:49:02 AM
Overall UPS gets a fundamental rating of 6 out of 10. We evaluated UPS against 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. UPS also has an excellent dividend rating. These ratings could make UPS a good candidate 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.
- Each year in the past 5 years UPS had a positive operating cash flow.
1.2 Ratios
- UPS's Return On Assets of 7.62% is amongst the best of the industry. UPS outperforms 82.61% of its industry peers.
- Looking at the Return On Equity, with a value of 34.34%, UPS belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
- UPS has a Return On Invested Capital of 10.69%. This is amongst the best in the industry. UPS outperforms 82.61% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for UPS is in line with the industry average of 12.38%.
| 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
- UPS has a better Profit Margin (6.28%) than 91.30% of its industry peers.
- UPS's Profit Margin has improved in the last couple of years.
- UPS's Operating Margin of 8.91% is amongst the best of the industry. UPS outperforms 91.30% of its industry peers.
- UPS's Operating Margin has declined in the last couple of years.
- The Gross Margin of UPS (83.19%) 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 | 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UPS is still creating some value.
- UPS has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for UPS has been reduced compared to 5 years ago.
- The debt/assets ratio for UPS is higher compared to a year ago.
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 of 3.09. This is in the better half of the industry: UPS outperforms 65.22% of its industry peers.
- 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.
- UPS has a Debt to FCF ratio of 5.06. This is in the better half of the industry: UPS outperforms 73.91% of its industry peers.
- A Debt/Equity ratio of 1.45 is on the high side and indicates that UPS has dependencies on debt 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 | 3.09 |
ROIC/WACC1.35
WACC7.9%
2.3 Liquidity
- A Current Ratio of 1.22 indicates that UPS should not have too much problems paying its short term obligations.
- UPS has a worse Current ratio (1.22) than 73.91% of its industry peers.
- A Quick Ratio of 1.22 indicates that UPS should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.22, UPS is doing worse than 69.57% of the companies in the same industry.
| 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%.
- The Earnings Per Share has been decreasing by -2.72% on average over the past years.
- UPS shows a decrease in Revenue. In the last year, the revenue decreased by -2.65%.
- The Revenue has been growing slightly by 0.94% on average over the past years.
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 8.28% on average per year.
- The Revenue is expected to grow by 3.43% on average over the next years.
EPS Next Y-0.36%
EPS Next 2Y6.31%
EPS Next 3Y6.72%
EPS Next 5Y8.28%
Revenue Next Year1.27%
Revenue Next 2Y2.79%
Revenue Next 3Y2.87%
Revenue Next 5Y3.43%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 16.76, UPS is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of UPS indicates a rather cheap valuation: UPS is cheaper than 82.61% of the companies listed in the same industry.
- UPS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.18.
- UPS is valuated correctly with a Price/Forward Earnings ratio of 16.82.
- Based on the Price/Forward Earnings ratio, UPS is valued cheaper than 91.30% of the companies in the same industry.
- UPS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 16.82 |
4.2 Price Multiples
- 73.91% of the companies in the same industry are more expensive than UPS, based on the Enterprise Value to EBITDA ratio.
- 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 | 21.37 | ||
| EV/EBITDA | 10.31 |
4.3 Compensation for Growth
- The excellent profitability rating of UPS 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
- UPS has a Yearly Dividend Yield of 5.63%, which is a nice return.
- UPS's Dividend Yield is rather good when compared to the industry average which is at 1.07. UPS pays more dividend than 95.65% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, UPS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.63% |
5.2 History
- On average, the dividend of UPS grows each year by 10.10%, 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)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.
- The dividend of UPS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP96.88%
EPS Next 2Y6.31%
EPS Next 3Y6.72%
120
+1.3 (+1.1%)
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 Change-0.96%
Ins Owners0.01%
Ins Owner Change-1.34%
Market Cap101.81B
Revenue(TTM)88.66B
Net Income(TTM)5.57B
Analysts72.94
Price Target116.73 (-2.72%)
Short Float %2.01%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.63% |
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)10.04%
PT rev (3m)15.98%
EPS NQ rev (1m)-18.85%
EPS NQ rev (3m)-19.05%
EPS NY rev (1m)-1.09%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)1.77%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 16.82 | ||
| P/S | 1.15 | ||
| P/FCF | 21.37 | ||
| P/OCF | 12.05 | ||
| P/B | 6.27 | ||
| P/tB | 15.98 | ||
| EV/EBITDA | 10.31 |
EPS(TTM)7.16
EY5.97%
EPS(NY)7.13
Fwd EY5.95%
FCF(TTM)5.62
FCFY4.68%
OCF(TTM)9.96
OCFY8.3%
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 | 3.09 |
F-Score6
WACC7.9%
ROIC/WACC1.35
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 5Y8.28%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y-4.04%
Revenue growth 5Y0.94%
Sales Q2Q%-3.25%
Revenue Next Year1.27%
Revenue Next 2Y2.79%
Revenue Next 3Y2.87%
Revenue Next 5Y3.43%
EBIT growth 1Y-7.88%
EBIT growth 3Y-15.62%
EBIT growth 5Y-1.44%
EBIT Next Year48.56%
EBIT Next 3Y18.29%
EBIT Next 5Y14.52%
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 16.76 and the Price/Book (PB) ratio is 6.27.
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.