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 Rating3.3/10
Generated at:2026-06-11 17:41:29
Analysis based on real financial data from 5 consecutive quarterly reports ending 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Stock price data as of 2026-06-11 close. Data completeness is good for the analyzed periods.
Overview

United Parcel Service, Inc. (UPS) is a leading global package delivery and logistics provider facing a cyclical downturn. The company maintains operational liquidity and a strong market position but is experiencing declining revenue and pressured net income while carrying a high degree of financial leverage. The current valuation appears to adequately reflect these challenges, offering limited immediate upside.

Valuation
3/10
Profitability
3/10
Financial health
4/10
Operation Advice
  • Maintain a Hold position for existing shareholders.
  • New investors should wait for a more attractive entry price (significantly below $100) or for clear evidence of a turnaround in profitability and debt stabilization.
  • Monitor future quarterly reports for reversal in earnings decline, progress on debt management, or resumption of revenue growth.

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 to slightly overvalued at $108.65. Valuation multiples are reasonable for a mature, cyclical company facing earnings contraction, but the current price offers limited margin of safety and sits near the upper end of the calculated fundamental range.
  • P/E (TTM) is 16.83x and Forward P/E is 16.14x, which could be considered reasonable or slightly below the historical market average for a mature, cyclical industrial company facing earnings contraction.
  • P/B ratio is 5.60x, which is high and reflects the market valuing equity significantly above book value, consistent with the high ROE of 31.90%.
  • P/S ratio is 1.05x, a moderate ratio indicating the market values the company at just slightly above its annual revenue.
  • With a P/E of ~16.8x and negative earnings growth, a traditional PEG ratio calculation is not favorable; the market is not pricing in significant growth.
  • Using TTM EPS of ~$6.46 and applying a P/E range of 15x to 18x gives a fundamental price range of $96.90 to $116.28.
  • The current price of $108.65 sits near the upper end of the fundamental range ($116.28) and is only ~2.3% below the recent 60-day high of $111.22.
  • Based on negative earnings growth, high financial leverage, and the current price position, UPS stock appears to be fairly valued to slightly overvalued.
Valuation trend

Profitability

ROE TTM
31.90%
Net margin
4.08%
Gross margin
96.26%
Total revenue
21.20B
AI Analysis
  • UPS is experiencing a downturn in both top-line growth and bottom-line profitability, with net income facing particular pressure. While ROE is very strong, it is structurally supported by high debt levels.
  • Total revenue has shown year-over-year declines across recent quarters; Q1 2026 revenue of $21.20B was down 1.60% YoY.
  • Full-year 2025 revenue of $88.66B was down 2.65% year-over-year.
  • Net income is under significant pressure; Q1 2026 net income of $864M represents a sharp -27.21% decline YoY.
  • Full-year 2025 net income fell by -3.63%.
  • Net margin has compressed, from 6.28% in FY 2025 to 4.08% in Q1 2026.
  • The Trailing Twelve Months (TTM) ROE is very strong at 31.90%, indicating efficient generation of profits from shareholder equity.
  • The high ROE figure is partly amplified by the high financial leverage (high debt).
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
  • UPS maintains adequate short-term liquidity but carries a notably high degree of financial leverage, which is a key risk factor. The company generates a reasonable return on assets despite the high debt.
  • The current ratio of 1.21 indicates adequate short-term liquidity to cover current obligations, though it is not exceptionally high.
  • The debt-to-asset ratio of 78.01% is notably high, indicating a significant reliance on debt financing.
  • High leverage increases financial risk, especially in a rising interest rate environment or during economic downturns.
  • The Return on Assets (ROA-TTM) of 7.26% demonstrates that the company is generating a reasonable profit from its asset base despite the high leverage.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset77.09%77.75%77.80%77.76%78.01%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.091.321.301.221.21