📊 UPS Key Takeaways
Is United Parcel Service Inc. (UPS) a Good Investment?
UPS demonstrates solid operational efficiency with 8.9% operating margins and exceptional return metrics (34.3% ROE, 7.6% ROA), supported by strong interest coverage of 40.3x. The company generates substantial free cash flow of $4.8B despite a revenue decline, indicating resilient underlying operations and effective capital allocation.
UPS shows solid underlying profitability and cash generation, with 8.9% operating margin, $8.45B of operating cash flow, and strong interest coverage of 40.3x despite a softer revenue backdrop. However, the latest period reflects modest top-line, earnings, and EPS declines, while leverage remains meaningful at 1.45x debt-to-equity, suggesting a fundamentally stable but currently low-growth business with limited margin of safety if volumes remain pressured.
Why Buy United Parcel Service Inc. Stock? UPS Key Strengths
- Exceptional return on equity of 34.3% and ROA of 7.6% demonstrate superior capital efficiency
- Strong interest coverage ratio of 40.3x indicates low financial distress risk despite elevated leverage
- Consistent free cash flow generation of $4.8B supports dividends and debt service capacity
- Operating margin of 8.9% remains healthy despite 2.6% revenue headwind
- Solid liquidity position with current ratio of 1.22x and $5.9B cash reserves
- Strong cash generation with $4.76B of free cash flow and a 5.4% FCF margin
- Healthy profitability profile with 8.9% operating margin, 6.3% net margin, and 34.3% ROE
- Sound near-term liquidity and debt service capacity, supported by 1.22x current ratio and 40.3x interest coverage
UPS Stock Risks: United Parcel Service Inc. Investment Risks
- Revenue decline of 2.6% YoY signals potential market share loss or demand softness in logistics sector
- Elevated debt-to-equity ratio of 1.45x with $23.6B long-term debt represents material leverage risk
- Net income decline of 3.6% YoY outpaces revenue decline, suggesting margin compression
- Capital intensity of business ($3.7B capex) limits flexibility during downturns
- Current ratio of 1.22x is modest and provides limited buffer for operational disruptions
- Revenue, net income, and diluted EPS all declined year over year, indicating weak near-term growth quality
- Leverage is elevated with $23.59B of long-term debt and 1.45x debt-to-equity
- Margin pressure could worsen if package volumes or pricing remain soft, especially given the absence of gross margin detail
Key Metrics to Watch
- Revenue trajectory and organic growth sustainability amid logistics market dynamics
- Operating margin trend and ability to maintain profitability despite revenue pressure
- Free cash flow consistency and coverage of $23.6B debt obligations
- Debt reduction progress and leverage ratio improvement
- Working capital efficiency and cash conversion cycle
- Revenue growth and operating margin trend
- Free cash flow generation relative to capital expenditures and debt levels
United Parcel Service Inc. (UPS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
United Parcel Service Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
UPS Profit Margin, ROE & Profitability Analysis
UPS vs Automotive Sector: How United Parcel Service Inc. Compares
How United Parcel Service Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is United Parcel Service Inc. Stock Overvalued? UPS Valuation Analysis 2026
Based on fundamental analysis, United Parcel Service Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
United Parcel Service Inc. Balance Sheet: UPS Debt, Cash & Liquidity
UPS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: United Parcel Service Inc.'s revenue has remained relatively flat over the 5-year period, with a 6% decline. The most recent EPS of $7.80 reflects profitable operations.
UPS Revenue Growth, EPS Growth & YoY Performance
UPS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $21.4B | $3.8B | $1.55 |
| Q2 2025 | $21.2B | $2.5B | $1.51 |
| Q1 2025 | $21.5B | $1.1B | $1.30 |
| Q3 2024 | $21.1B | $1.1B | $1.31 |
| Q2 2024 | $21.8B | $1.4B | $1.65 |
| Q1 2024 | $21.7B | $1.1B | $1.30 |
| Q3 2023 | $21.1B | $1.1B | $1.31 |
| Q2 2023 | $22.1B | $2.1B | $2.42 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
United Parcel Service Inc. Dividends, Buybacks & Capital Allocation
UPS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for United Parcel Service Inc. (CIK: 0001090727)
📋 Recent SEC Filings
❓ Frequently Asked Questions about UPS
What is the AI rating for UPS?
United Parcel Service Inc. (UPS) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are UPS's key strengths?
Claude: Exceptional return on equity of 34.3% and ROA of 7.6% demonstrate superior capital efficiency. Strong interest coverage ratio of 40.3x indicates low financial distress risk despite elevated leverage. ChatGPT: Strong cash generation with $4.76B of free cash flow and a 5.4% FCF margin. Healthy profitability profile with 8.9% operating margin, 6.3% net margin, and 34.3% ROE.
What are the risks of investing in UPS?
Claude: Revenue decline of 2.6% YoY signals potential market share loss or demand softness in logistics sector. Elevated debt-to-equity ratio of 1.45x with $23.6B long-term debt represents material leverage risk. ChatGPT: Revenue, net income, and diluted EPS all declined year over year, indicating weak near-term growth quality. Leverage is elevated with $23.59B of long-term debt and 1.45x debt-to-equity.
What is UPS's revenue and growth?
United Parcel Service Inc. reported revenue of $88.7B.
Does UPS pay dividends?
United Parcel Service Inc. pays dividends, with $5,398.0M distributed to shareholders in the trailing twelve months.
Where can I find UPS SEC filings?
Official SEC filings for United Parcel Service Inc. (CIK: 0001090727) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is UPS's EPS?
United Parcel Service Inc. has a diluted EPS of $6.56.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is UPS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, United Parcel Service Inc. has a BUY rating with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is UPS stock overvalued or undervalued?
Valuation metrics for UPS: ROE of 34.3% (sector avg: 12%), net margin of 6.3% (sector avg: 6%). Higher ROE suggests strong returns relative to peers.
Should I buy UPS stock in 2026?
Our dual AI analysis gives United Parcel Service Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is UPS's free cash flow?
United Parcel Service Inc.'s operating cash flow is $8.5B, with capital expenditures of $3.7B. FCF margin is 5.4%.
How does UPS compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 6.3% (avg: 6%), ROE 34.3% (avg: 12%), current ratio 1.22 (avg: 1.2).
Why is UPS's return on equity (ROE) so high?
United Parcel Service Inc. has a return on equity of 34.3%, significantly above the Automotive sector average of 12%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 6.3% net margin.