(UPS) United Parcel Service - Overview
Sector: Industrials | Industry: Integrated Freight & Logistics | Exchange: NYSE (USA) | Market Cap: 88.800m USD | Total Return: 19.6% in 12m
Avg Turnover: 557M
EPS Trend: -83.2%
Qual. Beats: 0
Rev. Trend: -75.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
United Parcel Service, Inc. (UPS) is a global logistics and package delivery firm headquartered in Atlanta, Georgia. The company manages two primary reporting segments: U.S. Domestic Package and International Package. Its operations encompass time-definite delivery of documents and freight via air and ground networks, alongside specialized services in freight forwarding, customs brokerage, and healthcare logistics.
Operating within the Air Freight & Logistics sub-industry, UPS utilizes a hub-and-spoke business model to optimize route density and fuel efficiency. This sector is characterized by high capital intensity due to the extensive infrastructure required for global sorting facilities and aircraft fleets. Investors can review additional valuation metrics on ValueRay to further assess the companys financial standing.
The firms international reach extends across Europe, the Middle East, Africa, Canada, Latin America, and Asia. Beyond standard delivery, UPS provides contract logistics and e-commerce solutions tailored for cross-border trade. Founded in 1907, the company has evolved from a local messenger service into one of the worlds largest integrated postal and logistics providers.
- Labor cost escalation following Teamsters contract negotiations pressures operating margins
- E-commerce delivery volume fluctuations impact domestic and international revenue growth
- Global manufacturing activity and trade levels drive high-margin international shipping demand
- Network modernization and automation initiatives determine long-term efficiency and profitability
- Rising fuel prices and surcharges influence transportation costs and customer pricing power
| Net Income: 5.25b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA -1.56 > 1.0 |
| NWC/Revenue: 3.53% < 20% (prev 1.58%; Δ 1.96% < -1%) |
| CFO/TA 0.12 > 3% & CFO 8.36b > Net Income 5.25b |
| Net Debt (23.6b) to EBITDA (11.4b): 2.06 < 3 |
| Current Ratio: 1.21 > 1.5 & < 3 |
| Outstanding Shares: last quarter (850.0m) vs 12m ago 0.0% < -2% |
| Gross Margin: 18.15% > 18% (prev 18.18%; Δ -0.03% > 0.5%) |
| Asset Turnover: 125.9% > 50% (prev 132.6%; Δ -6.64% > 0%) |
| Interest Coverage Ratio: 7.21 > 6 (EBIT TTM 7.62b / Interest Expense TTM 1.06b) |
| A: 0.04 (Total Current Assets 17.8b - Total Current Liabilities 14.7b) / Total Assets 71.8b |
| B: 0.27 (Retained Earnings 19.6b / Total Assets 71.8b) |
| C: 0.11 (EBIT TTM 7.62b / Avg Total Assets 70.1b) |
| D: 0.28 (Book Value of Equity 15.8b / Total Liabilities 56.0b) |
| Altman-Z'' = 2.20 = BBB |
| DSRI: 1.03 (Receivables 9.95b/9.89b, Revenue 88.3b/90.8b) |
| GMI: 1.00 (GM 18.18% / 18.15%) |
| AQI: 1.12 (AQ_t 0.17 / AQ_t-1 0.15) |
| SGI: 0.97 (Revenue 88.3b / 90.8b) |
| TATA: -0.04 (NI 5.25b - CFO 8.36b) / TA 71.8b) |
| Beneish M = -2.95 (Cap -4..+1) = A |
As of June 03, 2026, the stock is trading at USD 108.93 with a total of 5,781,492 shares traded.
Over the past week, the price has changed by +6.83%,
over one month by +15.01%,
over three months by -3.19% and
over the past year by +19.58%.
United Parcel Service has received a consensus analysts rating of 3.84. Therefore, it is recommended to buy UPS.
- StrongBuy: 14
- Buy: 3
- Hold: 12
- Sell: 2
- StrongSell: 1
| Analysts Target Price | 112.9 | 3.6% |
P/E Trailing = 16.9045
P/E Forward = 14.5985
P/S = 1.0055
P/B = 5.6335
P/EG = 1.6487
Revenue TTM = 88.3b USD
EBIT TTM = 7.62b USD
EBITDA TTM = 11.4b USD
Long Term Debt = 23.7b USD (from longTermDebt, last quarter)
Short Term Debt = 1.38b USD (from shortTermDebt, last quarter)
Debt = 29.4b USD (from shortLongTermDebtTotal, last quarter) + Leases 4.28b
Net Debt = 23.6b USD (calculated: Debt 29.4b - CCE 5.80b)
Enterprise Value = 112b USD (88.8b + Debt 29.4b - CCE 5.80b)
Interest Coverage Ratio = 7.21 (Ebit TTM 7.62b / Interest Expense TTM 1.06b)
EV/FCF = 24.89x (Enterprise Value 112b / FCF TTM 4.52b)
FCF Yield = 4.02% (FCF TTM 4.52b / Enterprise Value 112b)
FCF Margin = 5.11% (FCF TTM 4.52b / Revenue TTM 88.3b)
Net Margin = 5.94% (Net Income TTM 5.25b / Revenue TTM 88.3b)
Gross Margin = 18.15% ((Revenue TTM 88.3b - Cost of Revenue TTM 72.3b) / Revenue TTM)
Gross Margin QoQ = 16.97% (prev 21.08%)
Tobins Q-Ratio = 1.57 (Enterprise Value 112b / Total Assets 71.8b)
Interest Expense / Debt = 3.60% (Interest Expense 1.06b / Debt 29.4b)
Taxrate = 22.41% (1.52b / 6.76b)
NOPAT = 5.92b (EBIT 7.62b * (1 - 22.41%))
Current Ratio = 1.21 (Total Current Assets 17.8b / Total Current Liabilities 14.7b)
Debt / Equity = 1.87 (Debt 29.4b / totalStockholderEquity, last quarter 15.8b)
Debt / EBITDA = 2.06 (Net Debt 23.6b / EBITDA 11.4b)
Debt / FCF = 5.23 (Net Debt 23.6b / FCF TTM 4.52b)
Total Stockholder Equity = 15.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.48% (Net Income 5.25b / Total Assets 71.8b)
RoE = 33.03% (Net Income TTM 5.25b / Total Stockholder Equity 15.9b)
RoCE = 19.24% (EBIT 7.62b / Capital Employed (Equity 15.9b + L.T.Debt 23.7b))
RoIC = 10.94% (NOPAT 5.92b / Invested Capital 54.1b)
WACC = 7.46% (E(88.8b)/V(118b) * Re(9.0%) + D(29.4b)/V(118b) * Rd(3.60%) * (1-Tc(0.22)))
Discount Rate = 9.0% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -50.60 | Cagr: -0.42%
[DCF] Terminal Value 73.10% ; FCFF base≈4.86b ; Y1≈4.26b ; Y5≈3.44b
[DCF] Fair Price = 42.41 (EV 55.3b - Net Debt 23.6b = Equity 31.7b / Shares 746.6m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -83.16 | EPS CAGR: -12.81% | SUE: 0.27 | # QB: 0
Revenue Correlation: -75.15 | Revenue CAGR: -1.83% | SUE: 0.57 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.65 | Chg30d=+3.57% | Revisions=+30% | Analysts=21
EPS next Quarter (2026-09-30): EPS=1.73 | Chg30d=+0.66% | Revisions=-4% | Analysts=21
EPS current Year (2026-12-31): EPS=7.13 | Chg30d=+1.73% | Revisions=+28% | GrowthEPS=-0.4% | GrowthRev=+1.5%
EPS next Year (2027-12-31): EPS=8.00 | Chg30d=+0.98% | Revisions=+22% | GrowthEPS=+12.2% | GrowthRev=+4.0%
[Analyst] Revisions Ratio: +30%