United Parcel Service, Inc.UPS
NYSE•Industrials•Integrated Freight & Logistics
United Parcel Service, Inc., a package delivery and logistics provider, offers transportation and delivery services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery services for express letters, documents, packages and palletized freight through air and ground services. The International Package segment provides small package operations in Europe, the Middle East and Africa, Canada and Latin America, and Asia. The company offers a range of guaranteed day- and time-definite international transportation services; day-definite services; cross-border ground package delivery; contract-only, e-commerce solutions for non-urgent, and cross-border shipments; and international service for urgent and palletized shipments. It also provides international air and ocean freight forwarding, contract logistics, customs brokerage and insurance, mail services, healthcare logistics, distribution, and post-sales services. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.
as of March 2026
Are revenues and earnings expanding?
$88.32B in TTM revenue declined 2.9% YoY, reaching $21.20B last quarter. TTM EBITDA of $11.29B on operating income of $1.27B shows growth is flowing through. Net income of $5.25B TTM confirms the company is converting revenue into profit. Revenue is contracting — assess whether this is cyclical or structural.
Is revenue turning into profit effectively?
Op. margin of 6.0% is down 1.8% YoY — costs are rising relative to revenue. Net margin at 4.1%. ROE of 33.3% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 17.0x P/E, the stock trades in line with market averages — fairly valued. P/S of 1.0x and P/B of 5.7x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $71.81B in assets and $23.75B in long-term debt, the D/E of 1.5 reflects moderate leverage — debt is manageable but worth monitoring.
Is the business self-funding?
FCF of $1.19B on $2.22B in operating cash flow. The FCF / Net Income ratio of 0.2x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $5.80B provide financial flexibility. Share count is stable — no dilution or buyback activity.
Competitive analysis based on 68 quarters of fundamental data
Operating margins are positive at ~8.8% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 34.4% suggests a durable competitive advantage and efficient capital allocation.
7 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 68 quarters
Operating margins declined 9.8% — watch for continued compression, which may signal competitive or cost pressure.
FCF covers net income by 0.9x on average — earnings are well-supported by cash generation.
Debt-to-equity has risen 20.9% recently — increasing financial risk even if the current ratio is manageable.
Revenue has softened, declining in 5 quarters. Monitor for further erosion.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.