United Parcel Service, Inc.(UPS) - Stock detail

United Parcel Service, Inc.

US
UPS
United Parcel Service, Inc.(Listing date: 11/10/1999)

Founded in 1907, United Parcel Service is a private messenger and delivery service company based in Seattle, Washington. Today, UPS is the world's largest package delivery company, a leader in the U.S. less-than-truckload industry, and a premier provider of global supply chain management solutions. Each business day, the company delivers packages for 1.5 million shipping customers to 7.9 million consignees in more than 220 countries and territories. As a global logistics leader, the company creates value for its customers by reducing costs, improving service, and providing highly customizable supply chain control and visibility solutions. Customers are attracted to the company's extensive set of services, which are delivered as promised through its integrated global network of ground, air, and ocean transportation.

AI Value AnalystHold
Overall Rating6/10
Generated at:2026-03-06 16:41:20
Analysis based on 5 financial reports periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Data includes TTM (Trailing Twelve Months) metrics and annual financial data. Data completeness is adequate for comprehensive fundamental analysis.
Overview

United Parcel Service demonstrates mixed fundamental conditions with strong profitability metrics but concerning financial trends including declining revenue, high leverage, and competitive pressures. The company maintains efficient capital utilization but faces headwinds in revenue growth and margin stability.

Valuation
6/10
Profitability
7/10
Financial health
5/10
Operation Advice
  • Hold current position and monitor upcoming quarterly results for signs of revenue stabilization and margin improvement before considering additional exposure.
  • A reasonable 12-month target range is $110-$125 based on 17-19x forward earnings multiple.

Valuation

P/E TTM
15.86
P/E LYR
16.14
P/B MRQ
5.45
P/S TTM
--
AI Analysis
  • UPS appears fairly valued to slightly undervalued with PE-TTM of 15.86 below market average, elevated PB ratio of 5.45 reflecting brand value, and reasonable PS-TTM of 0.98 for capital-intensive logistics business.
  • PE-TTM of 15.86 and dynamic PE of 16.14 suggest UPS trades below broader market average (S&P 500 ~20-25x)
  • Elevated PB ratio of 5.45 reflects market recognition of UPS's strong brand value and infrastructure
  • PS-TTM of 0.98 indicates reasonable pricing relative to sales for a capital-intensive logistics business
  • Potential undervaluation relative to historical multiples
  • Current price of $102.36 appears fair relative to fundamentals
  • Reasonable 12-month target range is $110-$125 based on 17-19x forward earnings multiple applied to normalized EPS of $6.50-$6.75
Valuation trend

Profitability

ROE TTM
33.83%
Net margin
6.28%
Gross margin
96.50%
Total revenue
88.66B
AI Analysis
  • UPS maintains strong profitability metrics with ROE of 33.83% and ROA of 7.78% indicating efficient capital utilization, though margins face pressure from competitive markets and economic headwinds.
  • ROE of 33.83% (TTM) and ROA of 7.78% (TTM) indicate efficient use of shareholder capital and assets
  • Company maintains healthy margins with 100% (attributable to reporting methodology) and 6.28% net profit margin for FY2025
  • Net income declined -3.63% year-over-year to $5.57B
  • Diluted EPS decreased from $6.75 (2024) to $6.56 (2025)
  • Both ROE and ROA have declined slightly from previous periods
  • Margin pressure from competitive markets and economic headwinds
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--7.33%15.21%23.24%33.83%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue91.07B21.55B42.77B64.18B88.66B

Financial health

Debt/Asset
77.76%
Current ratio
1.22
Quick ratio
--
Cash ratio
1.22
AI Analysis
  • UPS demonstrates moderate financial health with adequate liquidity but concerning trends including high leverage (77.76% debt-to-equity) and declining revenue (-2.65% YoY) that warrant caution.
  • Current ratio of 1.22 indicates adequate short-term liquidity though limited buffer for unexpected obligations
  • High debt-to-equity structure of 77.76% indicates significant financial leverage
  • Recent financial data shows consistent but declining revenue trends
  • Annual revenue dropped from $91.07B (2024) to $88.66B (2025), representing -2.65% year-over-year decrease
  • Financial leverage could amplify risks during economic downturns
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset76.11%77.09%77.75%77.80%77.76%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.171.091.321.301.22