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 Rating4/10
Generated at:2026-04-20 17:42:54
Analysis based on real data for United Parcel Service, Inc. (UPS). Financial analysis uses 5 financial report periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Real-time and TTM data are used for valuation analysis, with the most recent closing price as of 2026-04-20.
Overview

United Parcel Service, Inc. (UPS) is a global leader in package delivery and logistics with a formidable competitive moat through its global scale and integrated network. The company demonstrates operational excellence with high gross margins and ROE, but faces headwinds from consistent year-over-year declines in key financial metrics and high financial leverage. The stock appears to be trading at or slightly above its fair intrinsic value, priced for stability rather than growth.

Valuation
4/10
Profitability
5/10
Financial health
3/10
Operation Advice
  • Existing investors should maintain their positions due to the company's strong market position and typical dividend.
  • New capital is not strongly justified at the current price of $107.11.
  • A more attractive entry point for a 'Buy' rating would be closer to the lower end of the $98 - $112 range.
  • Investors should await evidence of a reversal in the negative earnings trend before considering a more aggressive stance.

Valuation

P/E TTM
14.46
P/E LYR
16.14
P/B MRQ
4.96
P/S TTM
--
AI Analysis
  • The stock appears to be trading at or slightly above its fair intrinsic value based on valuation metrics. The P/E ratio is reasonable for a mature company showing negative growth, but the P/B ratio is elevated. The current price sits within the upper half of a calculated target range and above a simple P/E-derived base value, indicating it is not significantly undervalued.
  • The trailing twelve months (TTM) P/E is 14.46x, and the forward (dynamic) P/E is 16.14x. These multiples are reasonable for a mature, large-cap industrial company showing negative growth.
  • The P/B ratio is 4.96x, which is elevated, indicating the market is valuing the company significantly above its accounting book value.
  • The P/S ratio is 1.03x, which is a moderate valuation relative to sales.
  • The most recent closing price is $107.11. Over the provided 60-day trading window, the stock has traded between a low of $94.06 and a high of $122.41.
  • A conservative valuation using the TTM P/E of 14.46x and the FY2025 EPS of $6.56 gives a base value of $94.86.
  • A more normalized valuation, considering the 5-year average P/E but accounting for the current negative growth trend, implies a target range of $98.40 - $111.52.
  • The current price of $107.11 sits within the upper half of this calculated range and above the simple P/E-derived base value.
  • Based on the combination of a high P/B ratio, a reasonable P/E relative to recent negative growth, and the current price's position, the stock appears to be trading at or slightly above its fair intrinsic value. It is not significantly undervalued.
Valuation trend

Profitability

ROE TTM
33.83%
Net margin
6.28%
Gross margin
96.50%
Total revenue
88.66B
AI Analysis
  • Profitability metrics reveal a company with high operational efficiency but facing recent headwinds. The company maintains exceptionally high gross margins and an outstanding ROE, but key financial metrics show consistent year-over-year declines.
  • The company maintains exceptionally high gross margins (~96.5%), which is characteristic of its asset-heavy, scale-driven business model.
  • The net margin for FY2025 was 6.28%, showing the significant impact of operating expenses, interest, and taxes.
  • The Return on Equity (ROE-TTM) of 33.83% is outstanding.
  • It's important to note that this high ROE is significantly amplified by the high financial leverage (77.76% debt ratio).
  • The trend across the last five reported periods shows consistent year-over-year declines in revenue, gross profit, and net income.
  • For the full year 2025, revenue declined -2.65% and net income declined -3.63%.
  • This indicates the company is navigating a challenging operating environment, potentially due to economic softness or competitive pressures.
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
  • The company's financial health shows both strengths and concerns. Liquidity is reasonable, but the high debt-to-asset ratio is a significant point of concern indicating a highly leveraged capital structure. The company generates a reasonable profit from its asset base.
  • The current ratio of 1.22 indicates a reasonable, though not robust, ability to cover short-term obligations with short-term assets.
  • The high Debt-to-Asset ratio of 77.76% is a significant point of concern.
  • This indicates a highly leveraged capital structure, which increases financial risk, especially in a rising interest rate environment or during an economic downturn.
  • This level of debt is common in capital-intensive logistics but requires careful monitoring.
  • The Return on Assets (ROA-TTM) of 7.78% suggests the company is generating a reasonable profit from its asset base, even with the high debt load.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset76.11%77.09%77.75%77.80%77.76%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.171.091.321.301.22