📊 UPS Key Takeaways
Is United Parcel Service Inc. (UPS) a Good Investment?
UPS exhibits concerning fundamental deterioration with declining revenue (-2.6% YoY) and net income (-3.6% YoY), coupled with weak profitability margins (4.1% net margin). The elevated debt-to-equity ratio of 1.51x, anemic returns on capital (5.5% ROE, 1.2% ROA), and tight liquidity metrics present material financial stress.
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
- Positive operating cash flow generation at $2.2B demonstrates ongoing business viability
- Adequate interest coverage of 6.5x provides debt service cushion
- Substantial asset base of $71.8B reflects established market position and infrastructure
- 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 and net income declining YoY indicating market share loss or volume contraction
- High leverage with 1.51x debt-to-equity limiting financial flexibility and increasing refinancing risk
- Weak capital efficiency with 5.5% ROE and 1.2% ROA suggests poor asset utilization despite $71.8B invested
- Thin 4.1% net margin indicates structural pricing or cost control challenges in competitive logistics sector
- Tight liquidity with 1.21x current ratio constrains operational flexibility
- 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 growth stabilization and return to positive YoY growth
- Operating margin expansion through cost discipline or pricing power
- Free cash flow sustainability relative to declining profitability
- Debt reduction progress and debt-to-equity ratio trajectory
- Return on equity improvement and capital efficiency metrics
- 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. shows some fundamental concerns 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 |
|---|---|---|---|
| Q1 2026 | $21.2B | $864.0M | $1.02 |
| 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 |
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 SELL from Claude (SELL) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are UPS's key strengths?
Claude: Positive operating cash flow generation at $2.2B demonstrates ongoing business viability. Adequate interest coverage of 6.5x provides debt service cushion. 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 and net income declining YoY indicating market share loss or volume contraction. High leverage with 1.51x debt-to-equity limiting financial flexibility and increasing refinancing 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 $21.2B.
Does UPS pay dividends?
United Parcel Service Inc. pays dividends, with $1,352.0M 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 $1.02.
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 May 2026, United Parcel Service Inc. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is UPS stock overvalued or undervalued?
Valuation metrics for UPS: ROE of 5.5% (sector avg: 12%), net margin of 4.1% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy UPS stock in 2026?
Our dual AI analysis gives United Parcel Service Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is UPS's free cash flow?
United Parcel Service Inc.'s operating cash flow is $2.2B, with capital expenditures of $1.0B. FCF margin is 5.6%.
How does UPS compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 4.1% (avg: 6%), ROE 5.5% (avg: 12%), current ratio 1.21 (avg: 1.2).
Is United Parcel Service Inc. carrying too much debt?
UPS has a debt-to-equity ratio of 1.51x, which is above the Automotive sector average of 1x. However, the current ratio of 1.21 suggests adequate short-term liquidity.