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. Class B Common Stock |
| Country/Region | United States |
| GICS Sector | Industrials |
| GICS Industry Group | Transportation |
| GICS Industry | Air Freight & Logistics |
| GICS Sub-Industry | Air Freight & Logistics |
| Market Capitalization | 87.03 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) | 29.04% | 25.22% |
| Total Return (3Y, Annualized) | -10.25% | 9.12% |
| Total Return (5Y, Annualized) | -8.07% | 7.70% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 29.15% | 40.26% |
| Beta (5Y) | 1.06 | 1.18 |
| Max Drawdown (5Y) | -57.92% | -51.43% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.85 | 0.57 |
| Sortino Ratio (1Y) | 1.19 | 0.84 |
Profitability
ROE (TTM)
United Parcel Service (UPS) posts ROE of 29.60%, 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
29.60%
Group distribution
- Max
- 42.67%
- UPS
- 29.60%
- Q3
- 21.91%
- Median
- 11.31%
- Q1
- 1.36%
- Min
- -15.07%
Largest peers
- UNP
- 39.70%
- UBER
- 37.16%
- UPS
- 29.60%
- CSX
- 24.36%
- CNI
- 22.02%
- FDX
- 14.85%
- CP
- 8.15%
Net Margin (TTM)
United Parcel Service (UPS) keeps 5.08% 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
5.08%
Group distribution
- Max
- 51.26%
- Q3
- 21.10%
- Median
- 5.43%
- UPS
- 5.08%
- Q1
- 0.83%
- Min
- -11.37%
Largest peers
- UNP
- 28.85%
- CNI
- 26.92%
- CP
- 25.03%
- CSX
- 22.21%
- UBER
- 17.35%
- UPS
- 5.08%
- FDX
- 4.68%
Operating Margin (TTM)
United Parcel Service (UPS) turns 9.05% 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
9.05%
Group distribution
- Max
- 50.63%
- Q3
- 22.88%
- Median
- 9.27%
- UPS
- 9.05%
- Q1
- 3.28%
- Min
- -11.50%
Largest peers
- UNP
- 40.98%
- CNI
- 40.27%
- CP
- 38.98%
- CSX
- 38.42%
- UBER
- 13.32%
- FDX
- 11.13%
- UPS
- 9.05%
Profitability Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| ROE (TTM) | 29.60% | 11.31% |
| ROA (TTM) | 7.28% | 4.24% |
| Net Margin (TTM) | 5.08% | 5.43% |
| Operating Margin (TTM) | 9.05% | 9.27% |
| Gross Margin (TTM) | 22.41% | 27.99% |
Growth
Revenue Growth
United Parcel Service (UPS) grew revenue -2.65%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.
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% | 2.79% |
| Revenue Growth (3Y CAGR) | -4.04% | 1.66% |
| EPS Growth (YoY) | -2.81% | -2.81% |
| EPS Growth (3Y CAGR) | -20.79% | -8.96% |
Financial Strength
Current Ratio (MRQ)
United Parcel Service (UPS) has current ratio of 1.18, 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
1.18
Group distribution
- Max
- 2.50
- Q3
- 1.59
- UPS
- 1.18
- Median
- 1.15
- Q1
- 0.79
- Min
- 0.28
Largest peers
- FDX
- 1.48
- UPS
- 1.18
- UNP
- 0.99
- CNI
- 0.87
- UBER
- 0.84
- CSX
- 0.82
- CP
- 0.59
Debt / Equity (MRQ)
United Parcel Service (UPS) has debt-to-equity ratio of 1.90, 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
1.90
Group distribution
- Max
- 2.08
- UPS
- 1.90
- Q3
- 1.38
- Median
- 0.79
- Q1
- 0.36
- Min
- 0.00
Largest peers
- UPS
- 1.90
- UNP
- 1.51
- CSX
- 1.38
- FDX
- 1.36
- CNI
- 1.04
- CP
- 0.53
- UBER
- 0.52
Financial Strength Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.18 | 1.15 |
| Debt / Equity (MRQ) | 1.90 | 0.79 |
| Net Debt / EBITDA | 1.99 | 2.20 |
Dividends
Dividend Yield (TTM)
United Parcel Service (UPS) has dividend yield of 6.34%, 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
6.34%
Group distribution
- UPS
- 6.34%
- Max
- 4.75%
- Q3
- 2.00%
- Median
- 0.76%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- UPS
- 6.34%
- CNI
- 2.93%
- UNP
- 1.91%
- FDX
- 1.72%
- CSX
- 1.10%
- CP
- 1.04%
- UBER
- 0.00%
Dividend Payout Ratio (TTM)
United Parcel Service (UPS) has payout ratio of 121.93%, 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
121.93%
Group distribution
- UPS
- 121.93%
- Max
- 108.70%
- Q3
- 44.78%
- Median
- 21.03%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- UPS
- 121.93%
- CNI
- 46.28%
- UNP
- 44.70%
- CSX
- 31.40%
- FDX
- 31.27%
- CP
- 22.14%
- UBER
- 0.00%
Dividend Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 6.34% | 0.76% |
| Dividend Payout Ratio (TTM) | 121.93% | 21.03% |
Valuation
P/E Ratio (TTM)
United Parcel Service (UPS) trades at P/E ratio of 19.01, 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
19.01
Group distribution
- Max
- 56.79
- Q3
- 30.91
- Median
- 19.67
- UPS
- 19.01
- Q1
- 12.11
- Min
- 2.43
Largest peers
- CP
- 29.45
- CSX
- 28.73
- UNP
- 23.47
- CNI
- 21.91
- UPS
- 19.01
- FDX
- 17.40
- UBER
- 16.61
P/S Ratio (TTM)
United Parcel Service (UPS) trades at 0.97 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
0.97
Group distribution
- Max
- 4.20
- Q3
- 2.29
- Median
- 1.21
- UPS
- 0.97
- Q1
- 0.59
- Min
- 0.06
Largest peers
- UNP
- 6.77
- CSX
- 6.31
- CP
- 5.21
- CNI
- 4.20
- UBER
- 2.80
- UPS
- 0.97
- FDX
- 0.81
P/B Ratio (MRQ)
United Parcel Service (UPS) trades at 5.78 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
5.78
Group distribution
- Max
- 7.22
- UPS
- 5.78
- Q3
- 3.63
- Median
- 2.01
- Q1
- 1.22
- Min
- -2.19
Largest peers
- UNP
- 8.85
- CSX
- 6.50
- UPS
- 5.78
- UBER
- 5.66
- CNI
- 4.72
- FDX
- 2.45
- CP
- 2.39
Valuation Metrics
| Metric | Current stock: UPS | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 19.01 | 19.67 |
| P/S Ratio (TTM) | 0.97 | 1.21 |
| P/B Ratio (MRQ) | 5.78 | 2.01 |
| Free Cash Flow Yield (TTM) | 6.43% | 3.07% |