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 Rating3.7/10
Generated at:2026-06-04 17:40:43
Analysis based on real data from 5 consecutive financial reports: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Stock price data as of 2026-06-04 close. Data includes company basic information, financial ratios, profitability metrics, and valuation multiples.
Overview

United Parcel Service, Inc. (UPS) is a global leader in package delivery and logistics with a dominant market position and robust network. However, its fundamental analysis reveals a mixed picture: the company maintains strong operational efficiency with high gross margins but faces significant headwinds including declining year-over-year profitability, high financial leverage, and a stock price that appears fairly valued with limited margin of safety.

Valuation
4/10
Profitability
4/10
Financial health
3/10
Operation Advice
  • Hold existing positions due to the company's strong business model and historical dividend, but do not initiate new positions at the current price.
  • A more attractive entry point would be closer to the lower bound of the fair value range ($98.40), or investors should wait for clear signs of earnings stabilization or improvement before considering a buy.

Valuation

P/E TTM
16.83
P/E LYR
16.14
P/B MRQ
5.60
P/S TTM
--
AI Analysis
  • The stock appears fairly valued with limited margin of safety. Current price sits slightly above the mid-point of the calculated fair value range, and while valuation multiples are reasonable for a mature company, there is no compelling discount given recent negative earnings trends.
  • Forward P/E is 16.14x and Trailing P/E (TTM) is 16.83x, which are reasonable multiples for a mature, large-cap industrial company showing negative earnings growth.
  • Price-to-Book ratio of 5.60x is high, reflecting market valuation of strong brand, network, and intangible assets rather than tangible book value.
  • Price-to-Sales ratio of 1.06x is relatively low, suggesting the market is not assigning a high premium to sales, aligning with low single-digit revenue growth.
  • PEG ratio analysis is less meaningful due to negative earnings growth rate.
  • Fair value range estimated at $98.40 (lower bound, 15x P/E) to $118.08 (upper bound, 18x P/E) based on TTM EPS of approximately $6.56.
  • Mid-point target price is $108.24.
  • Current price of $110.22 sits slightly above the mid-point and within the upper half of the fair value range.
  • Stock appears to be trading at or slightly above its intrinsic value based on current fundamentals, with no clear margin of safety given recent negative earnings trend and high leverage.
Valuation trend

Profitability

ROE TTM
31.90%
Net margin
4.08%
Gross margin
96.26%
Total revenue
21.20B
AI Analysis
  • UPS demonstrates strong operational efficiency with exceptionally high gross margins, but profitability is under pressure with declining net margins and significant year-over-year contraction in net income.
  • Company maintains exceptionally high gross margins (~96%), characteristic of its asset-heavy, scale-driven business model.
  • Net margin has compressed, falling to 4.08% in Q1 2026 from 5.51% in Q1 2025.
  • Trailing Twelve Months (TTM) Return on Equity (ROE) of 31.90% is outstanding, largely driven by high financial leverage.
  • TTM Return on Assets (ROA) of 7.26% is more modest, reflecting the capital-intensive nature of the business.
  • Recent quarterly results show a decline in year-over-year growth for revenue, gross profit, and net income.
  • Net income declined -27.21% year-over-year for Q1 2026.
  • This negative earnings trend warrants close monitoring to determine if it is temporary or the start of a longer-term issue.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--15.21%23.24%33.83%31.90%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue21.55B42.77B64.18B88.66B21.20B

Financial health

Debt/Asset
78.01%
Current ratio
1.21
Quick ratio
--
Cash ratio
1.21
AI Analysis
  • Financial health shows mixed signals with adequate liquidity but significant concern regarding high leverage, which increases financial risk.
  • Current ratio of 1.21 indicates sufficient short-term assets to cover short-term liabilities, though not exceptionally high.
  • Debt-to-asset ratio of 78.01% is a significant point of concern, indicating a highly leveraged capital structure.
  • High leverage increases financial risk, especially in a rising interest rate environment or during economic downturns.
  • While the company is profitable, the high leverage amplifies returns on equity but also magnifies risks.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset77.09%77.75%77.80%77.76%78.01%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.091.321.301.221.21