UPS (UPS): analysis in plain words
Is UPS cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
UPS (UPS) is listed on the NYSE and we classify it in industrials. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against UPS according to those figures, and the questions people ask most about the stock. No buy or sell tips.
UPS (UPS) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $114.31 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 21.2x | Price over earnings per share |
| Revenue growth | +6.7% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 4.8% | Profit for every 100 of sales |
| Net debt / EBITDA | 2.1x | Years of operating profit to repay debt |
| Dividend yield | 6.01% | Annual dividend over price |
| Market cap | $97.3 billion | What the stock market values it at |
The UPS figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any UPS figure that is not available shows as N/A: we do not estimate it.
How UPS makes money
United Parcel Service earns money delivering packages. U.S. Domestic Package, its largest segment, covers ground and air shipping within the United States. International Package handles cross-border and in-country delivery abroad, and Supply Chain Solutions provides freight forwarding, customs brokerage, contract logistics and health care logistics.
Over the last 12 months, UPS brought in revenue of $91.4 billion. For every 100 it sells, UPS keeps 21.4 after the direct cost of what it sells (gross margin) and 7.9 after all operating costs (operating margin). With 460,000 full-time employees, that is about $199,000 of revenue per employee.
UPS against its sector
To know whether a UPS figure is high or low you have to put it next to similar companies. This table compares UPS with the median of the 20 industrials companies Fintols covers, with data as of November 4, 2026.
| Figure | UPS | industrials median |
|---|---|---|
| P/E | 21.2x | 27.3x (20) |
| Revenue growth | +6.7% | +9.8% (20) |
| Net margin | 4.8% | 13.0% (20) |
| Dividend yield | 6.01% | 1.60% (20) |
| Net debt / EBITDA | 2.1x | 2.1x (20) |
In short, against the typical industrials company, UPS trades on a lower P/E, grows more slowly and earns a thinner margin. By size, UPS ranks number 8 of 15 industrials companies quoted in USD on Fintols.
The bull case for UPS
What works in favour of UPS, according to its figures as of November 4, 2026:
- Analysts expect UPS earnings to rise: its P/E on the next 12 months of estimated earnings is 14.1x, below the current 21.2x.
- UPS earns 28.6% a year on its shareholders' money (return on equity).
- UPS generates real cash: $5.6 billion of free cash flow over 12 months, 5.8% of its stock market value.
The main risk for UPS
UPS pays out more in dividends than it earns (a 122% payout ratio): its 6.01% yield only holds up if profit recovers.
On top of that: uPS runs on a thin net margin (4.8%, against a industrials median of 13.0%): a rise in costs can easily wipe out profit.
And, like the rest of industrials, UPS is exposed to the economic cycle: when industry and trade slow, its orders fall.
Frequently asked questions about UPS
Is it a good time to buy UPS stock?
Fintols does not tell you whether to buy or sell UPS, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, UPS stock trades at $114.31, 7% below its 52-week high ($122.41) and 26% above its low ($90.84). Its P/E is 21.2x against a industrials median of 27.3x, and 14.1x on the earnings analysts expect over the next 12 months. With UPS, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does UPS pay a dividend?
Yes. As of November 4, 2026, UPS pays $6.56 per share a year, which at today's price is a yield of 6.01%. It uses 122% of its profit to pay it, more than it earns, which cannot last forever. Its average dividend yield over the last five years is 4.05%. The industrials median on Fintols is 1.60%.
Is UPS stock expensive?
It depends on what you compare it with. On P/E, UPS trades at 21.2x its last 12 months of earnings: cheaper than the industrials median (27.3x). Including its debt, UPS is valued at 10.4x its EBITDA (EV/EBITDA). A high P/E alone does not make UPS expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are UPS's competitors?
On Fintols we compare UPS with FedEx, 3M and Illinois Tool Works, which are also in industrials. As of November 4, 2026, FedEx is worth $77.1 billion and trades on a P/E of 17.8; 3M is worth $100.0 billion and trades on a P/E of 28.9; Illinois Tool Works is worth $83.4 billion and trades on a P/E of 26.2. Each has a side-by-side comparison with UPS below.
UPS competitors
- FedEx (FDX) analysis · UPS vs FedEx comparison
- 3M (MMM) analysis · UPS vs 3M comparison
- Illinois Tool Works (ITW) analysis · UPS vs Illinois Tool Works comparison
To understand UPS better
- DCF and WACC Explained: A Practical Valuation Guide
- Dividend Growth Investing: FCF Payout Ratio and Compounding
More companies like UPS: industrials stocks, S&P 500 companies and S&P 100 companies. Open the full UPS analysis with its valuation and scenarios. Educational content about UPS, not investment advice.