United Parcel Service (UPS) Stock Analysis
This is a peer-relative look at United Parcel Service (UPS): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Transportation peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | UPS |
|---|---|
| Name | United Parcel Service, Inc. |
| Country/Region | United States |
| GICS Sector | Industrials |
| GICS Industry Group | Transportation |
| GICS Industry | Air Freight & Logistics |
| GICS Sub-Industry | Air Freight & Logistics |
| Market Capitalization | 98.89 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | November 10, 1999 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| Total Return (1Y) | 25.72% | 42.28% |
| Total Return (3Y, Annualized) | -9.86% | 10.91% |
| Total Return (5Y, Annualized) | -7.25% | 10.49% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 30.59% | 39.94% |
| Beta (5Y) | 1.05 | 1.14 |
| Max Drawdown (5Y) | -57.92% | -52.03% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.71 | 1.03 |
| Sortino Ratio (1Y) | 0.96 | 1.53 |
Profitability
ROE (TTM)
United Parcel Service (UPS) posts ROE of 33.35%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
UPS
Transportation industry group
33.35%
Group distribution
- Max
- 43.37%
- UPS
- 33.35%
- Q3
- 19.94%
- Median
- 10.23%
- Q1
- 1.86%
- Min
- -18.53%
Largest peers
- UNP
- 40.69%
- UBER
- 35.31%
- UPS
- 33.35%
- CSX
- 23.68%
- CNI
- 21.85%
- FDX
- 14.85%
- CP
- 8.43%
Net Margin (TTM)
United Parcel Service (UPS) keeps 5.94% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
UPS
Transportation industry group
5.94%
Group distribution
- Max
- 43.82%
- Q3
- 18.75%
- UPS
- 5.94%
- Median
- 5.20%
- Q1
- 0.62%
- Min
- -9.62%
Largest peers
- UNP
- 29.20%
- CNI
- 27.23%
- CP
- 27.21%
- CSX
- 21.55%
- UBER
- 15.91%
- UPS
- 5.94%
- FDX
- 4.68%
Operating Margin (TTM)
United Parcel Service (UPS) turns 6.33% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
UPS
Transportation industry group
6.33%
Group distribution
- Max
- 54.53%
- Q3
- 24.38%
- Median
- 7.26%
- UPS
- 6.33%
- Q1
- 1.31%
- Min
- -33.27%
Largest peers
- UNP
- 40.36%
- CNI
- 38.41%
- CP
- 37.56%
- CSX
- 36.16%
- UBER
- 14.57%
- FDX
- 11.13%
- UPS
- 6.33%
Profitability Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| ROE (TTM) | 33.35% | 10.23% |
| ROA (TTM) | 7.19% | 3.47% |
| Net Margin (TTM) | 5.94% | 5.20% |
| Operating Margin (TTM) | 6.33% | 7.26% |
| Gross Margin (TTM) | 22.45% | 27.62% |
Growth
Revenue Growth
United Parcel Service (UPS) grew revenue -2.65%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
United Parcel Service (UPS) grew earnings per share -2.81%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | -2.65% | 2.11% |
| Revenue Growth (3Y CAGR) | -4.04% | 1.62% |
| EPS Growth (YoY) | -2.81% | -6.71% |
| EPS Growth (3Y CAGR) | -20.79% | -7.47% |
Financial Strength
Current Ratio (MRQ)
United Parcel Service (UPS) has current ratio of 1.21, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
UPS
Transportation industry group
1.21
Group distribution
- Max
- 2.26
- Q3
- 1.59
- UPS
- 1.21
- Median
- 1.12
- Q1
- 0.78
- Min
- 0.30
Largest peers
- FDX
- 1.48
- UPS
- 1.21
- UBER
- 1.07
- CSX
- 0.97
- UNP
- 0.92
- CP
- 0.67
- CNI
- 0.67
Debt / Equity (MRQ)
United Parcel Service (UPS) has debt-to-equity ratio of 1.82, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.
UPS
Transportation industry group
1.82
Group distribution
- Max
- 3.37
- UPS
- 1.82
- Q3
- 1.62
- Median
- 0.84
- Q1
- 0.36
- Min
- 0.00
Largest peers
- UPS
- 1.82
- UNP
- 1.62
- CSX
- 1.43
- FDX
- 1.36
- CNI
- 1.06
- CP
- 0.51
- UBER
- 0.48
Financial Strength Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.21 | 1.12 |
| Debt / Equity (MRQ) | 1.82 | 0.84 |
| Net Debt / EBITDA | 1.93 | 2.41 |
Dividends
Dividend Yield (TTM)
United Parcel Service (UPS) has dividend yield of 5.80%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.
UPS
Transportation industry group
5.80%
Group distribution
- UPS
- 5.80%
- Max
- 4.23%
- Q3
- 1.79%
- Median
- 0.55%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- UPS
- 5.80%
- CNI
- 2.82%
- UNP
- 1.85%
- CSX
- 1.06%
- CP
- 1.00%
- UBER
- 0.00%
- FDX
- 0.00%
Dividend Payout Ratio (TTM)
United Parcel Service (UPS) has payout ratio of 106.15%, meaning dividends exceeded current-period earnings. The gap would need to be covered by cash, retained earnings, financing, or other sources, so earnings alone do not support the payout.
UPS
Transportation industry group
106.15%
Group distribution
- UPS
- 106.15%
- Max
- 106.15%
- Q3
- 44.94%
- Median
- 20.02%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- UPS
- 106.15%
- CNI
- 47.13%
- UNP
- 45.10%
- CSX
- 32.52%
- FDX
- 31.27%
- CP
- 20.36%
- UBER
- 0.00%
Dividend Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 5.80% | 0.55% |
| Dividend Payout Ratio (TTM) | 106.15% | 20.02% |
Valuation
P/E Ratio (TTM)
United Parcel Service (UPS) trades at P/E ratio of 18.32, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
UPS
Transportation industry group
18.32
Group distribution
- Max
- 94.71
- Q3
- 46.51
- Median
- 23.58
- UPS
- 18.32
- Q1
- 14.12
- Min
- 1.16
Largest peers
- CSX
- 30.80
- CP
- 29.03
- UNP
- 24.39
- CNI
- 23.71
- UPS
- 18.32
- UBER
- 17.93
- FDX
- 16.50
P/S Ratio (TTM)
United Parcel Service (UPS) trades at 1.12 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
UPS
Transportation industry group
1.12
Group distribution
- Max
- 4.46
- Q3
- 2.30
- Median
- 1.35
- UPS
- 1.12
- Q1
- 0.62
- Min
- 0.07
Largest peers
- UNP
- 7.05
- CSX
- 6.55
- CP
- 5.40
- CNI
- 4.46
- UBER
- 2.71
- UPS
- 1.12
- FDX
- 0.79
P/B Ratio (MRQ)
United Parcel Service (UPS) trades at 6.09 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
UPS
Transportation industry group
6.09
Group distribution
- Max
- 9.10
- UPS
- 6.09
- Q3
- 4.59
- Median
- 2.21
- Q1
- 1.23
- Min
- -2.48
Largest peers
- UNP
- 8.96
- CSX
- 6.83
- UPS
- 6.09
- UBER
- 5.89
- CNI
- 5.06
- CP
- 2.46
- FDX
- 2.40
Valuation Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 18.32 | 23.58 |
| P/S Ratio (TTM) | 1.12 | 1.35 |
| P/B Ratio (MRQ) | 6.09 | 2.21 |
| Free Cash Flow Yield (TTM) | 4.68% | 2.46% |