UNITED PARCEL SERVICE-CL B (UPS) Stock Fundamental Analysis
NYSE:UPS - New York Stock Exchange, Inc. - US9113121068 - Common Stock - Currency: USD
Overall UPS gets a fundamental rating of 6 out of 10. We evaluated UPS against 22 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 quite cheap, while showing a decent growth score. This is a good combination! 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
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
The Return On Assets of UPS (8.08%) is better than 81.82% of its industry peers.
UPS's Return On Equity of 36.38% is amongst the best of the industry. UPS outperforms 90.91% of its industry peers.
UPS has a Return On Invested Capital of 11.69%. This is amongst the best in the industry. UPS outperforms 81.82% 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 12.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.08% | ||
| ROE | 36.38% | ||
| ROIC | 11.69% |
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 (6.34%) is better than 86.36% of its industry peers.
In the last couple of years the Profit Margin of UPS has remained more or less at the same level.
UPS has a Operating Margin of 9.41%. 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.
UPS's Gross Margin of 81.60% is amongst the best of 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 | 9.41% | ||
| PM (TTM) | 6.34% | ||
| GM | 81.6% |
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
UPS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for UPS remains at a similar level compared to 1 year ago.
UPS has less shares outstanding than it did 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 2.94. This is not the best score and indicates that UPS is in the grey zone with still only limited risk for bankruptcy at the moment.
UPS has a Altman-Z score (2.94) which is comparable to the rest of the industry.
UPS has a debt to FCF ratio of 6.97. This is a slightly negative value and a sign of low solvency as UPS would need 6.97 years to pay back of all of its debts.
UPS's Debt to FCF ratio of 6.97 is fine compared to the rest of the industry. UPS outperforms 68.18% 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.
The Debt to Equity ratio of UPS (1.51) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 6.97 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.54
WACC7.6%
2.3 Liquidity
A Current Ratio of 1.32 indicates that UPS should not have too much problems paying its short term obligations.
UPS has a Current ratio (1.32) which is in line with its industry peers.
A Quick Ratio of 1.32 indicates that UPS should not have too much problems paying its short term obligations.
UPS has a Quick ratio of 1.32. This is comparable to the rest of the industry: UPS outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
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%.
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 small growth in Revenue. The Revenue has grown by 0.91% in the last year.
Measured over the past years, UPS shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
EPS 1Y (TTM)3.99%
EPS 3Y-13.95%
EPS 5Y0.53%
EPS Q2Q%-13.41%
Revenue 1Y (TTM)0.91%
Revenue growth 3Y-2.18%
Revenue growth 5Y4.21%
Sales Q2Q%-2.74%
3.2 Future
The Earnings Per Share is expected to grow by 6.93% on average over the next years.
Based on estimates for the next years, UPS will show a small growth in Revenue. The Revenue will grow by 2.33% on average per year.
EPS Next Y-8.82%
EPS Next 2Y1.28%
EPS Next 3Y3.94%
EPS Next 5Y6.93%
Revenue Next Year-4.45%
Revenue Next 2Y-1.93%
Revenue Next 3Y0.03%
Revenue Next 5Y2.33%
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.
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
UPS is valuated reasonably with a Price/Earnings ratio of 11.46.
90.91% of the companies in the same industry are more expensive than UPS, based on the Price/Earnings ratio.
UPS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.86.
With a Price/Forward Earnings ratio of 10.92, the valuation of UPS can be described as very reasonable.
90.91% of the companies in the same industry are more expensive than UPS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of UPS to the average of the S&P500 Index (34.94), we can say UPS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UPS indicates a somewhat cheap valuation: UPS is cheaper than 72.73% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UPS indicates a somewhat cheap valuation: UPS is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.65 | ||
| EV/EBITDA | 7.56 |
4.3 Compensation for Growth
The excellent profitability rating of UPS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)21.81
EPS Next 2Y1.28%
EPS Next 3Y3.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.41%, UPS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.81, UPS pays a better dividend. On top of this UPS pays more dividend than 95.45% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, UPS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.41% |
5.2 History
On average, the dividend of UPS grows each year by 11.17%, which is quite nice.
UPS has paid a dividend for at least 10 years, which is a reliable track record.
UPS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.17%
Div Incr Years15
Div Non Decr Years25
5.3 Sustainability
UPS pays out 94.15% 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.
DP94.15%
EPS Next 2Y1.28%
EPS Next 3Y3.94%
NYSE:UPS (8/21/2025, 11:39:07 AM)
86.5503
-0.39 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners70.62%
Inst Owner Change-1.27%
Ins Owners0%
Ins Owner Change1.04%
Market Cap73.29B
Analysts73.33
Price Target108.2 (25.01%)
Short Float %2.47%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.41% |
Yearly Dividend6.33
Dividend Growth(5Y)11.17%
DP94.15%
Div Incr Years15
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.6%
Min EPS beat(2)-1.66%
Max EPS beat(2)6.85%
EPS beat(4)3
Avg EPS beat(4)4.98%
Min EPS beat(4)-1.66%
Max EPS beat(4)7.57%
EPS beat(8)5
Avg EPS beat(8)2.56%
EPS beat(12)7
Avg EPS beat(12)1.99%
EPS beat(16)11
Avg EPS beat(16)3.24%
Revenue beat(2)2
Avg Revenue beat(2)1.04%
Min Revenue beat(2)0.72%
Max Revenue beat(2)1.36%
Revenue beat(4)2
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)1.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.25%
Revenue beat(12)2
Avg Revenue beat(12)-1.93%
Revenue beat(16)5
Avg Revenue beat(16)-1.17%
PT rev (1m)-7.1%
PT rev (3m)-7.74%
EPS NQ rev (1m)-14.79%
EPS NQ rev (3m)-27.72%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 10.92 | ||
| P/S | 0.81 | ||
| P/FCF | 20.65 | ||
| P/OCF | 9.79 | ||
| P/B | 4.65 | ||
| P/tB | 9.66 | ||
| EV/EBITDA | 7.56 |
EPS(TTM)7.55
EY8.72%
EPS(NY)7.93
Fwd EY9.16%
FCF(TTM)4.19
FCFY4.84%
OCF(TTM)8.84
OCFY10.22%
SpS106.65
BVpS18.6
TBVpS8.96
PEG (NY)N/A
PEG (5Y)21.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.08% | ||
| ROE | 36.38% | ||
| ROCE | 14.99% | ||
| ROIC | 11.69% | ||
| ROICexc | 13.15% | ||
| ROICexgc | 15.69% | ||
| OM | 9.41% | ||
| PM (TTM) | 6.34% | ||
| GM | 81.6% | ||
| FCFM | 3.93% |
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-Score7
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 6.97 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 107.3% | ||
| Cap/Sales | 4.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.54% | ||
| Profit Quality | 61.94% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.94 |
F-Score7
WACC7.6%
ROIC/WACC1.54
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 5Y6.93%
Revenue 1Y (TTM)0.91%
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 5Y2.33%
EBIT growth 1Y14.45%
EBIT growth 3Y-12.41%
EBIT growth 5Y1.92%
EBIT Next Year32.62%
EBIT Next 3Y15.39%
EBIT Next 5Y11.63%
FCF growth 1Y-42.79%
FCF growth 3Y-16.86%
FCF growth 5Y22.43%
OCF growth 1Y-34.34%
OCF growth 3Y-12.3%
OCF growth 5Y3.22%