UPSUnited Parcel Service

$94.55+17% 1Y

$94.55

$78.7352 weeks$117.73

Is the business good?

Mixed

The checks split: earnings fully cash-backed (1.7×), but margins compressing and returns that lean on debt.

1 good, 2 to watch, 1 without data

Profits arrive as cash1.73×derived · Jun 30, 2026

Operating profit is fully backed by cash. Conversion is improving vs a year ago.

Margin direction, 3 years−4.9 pts

Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.

Where ROE comes from4.6× leverage

Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 33% = margin × turnover × leverage.

Unless marked, from derived.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

FCF conversionmiddle of the market

Leverage (Debt/EBITDA)middle of the market

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.

United Parcel Service earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.

15%

Return on invested capital · cost of capital 9.0% · 5.9 points above what the capital costs: growth creates value

Operating margin: 7.3%
Operating margin · Integrated Freight & Logistics median 5.3% · 12 months to Q2 2026
Cash conversion: 1.73×
Cash conversion · 1.12× a year ago · operating cash flow covers the operating profit after tax
Share count, year on year: +0.47%
Share count, year on year · flat: no meaningful dilution

Details›

Operating margin12 months to Q2 2026: 7.3%
Net margin12 months to Q2 2026: 5.1%
Free cash flow margin: 6.1%
Revenue, trailing twelve months: $89.9B
Free cash flow, trailing twelve months: $5.46B
Net income, trailing twelve months: $4.57B
Return on invested capitaloperating profit after tax ÷ debt + equity − cash: 15%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.

The closest names by size in the same industry