Con tu permiso, usamos análisis limitados y respetuosos con la privacidad para entender qué recorridos de investigación funcionan. No usamos rastreadores publicitarios ni grabación de sesiones. Puedes cambiar esta opción en Preferencias. Lee la Política de privacidad.
Quote this valuation with its source: Fair value, Potential value and the price at analysis.
FAQ
UPS — frequently asked questions
Is United Parcel Service Inc. overvalued?
In our latest published analysis dated 2026-10-03, UPS trades close to fair value. The price recorded at analysis is 93,0 USD versus our fair value of 91,9 USD; the high endpoint is presented separately as potential value of 107 USD. That implies roughly 1.2% downside to fair value at that date.
Our latest published report, analyzed 2026-10-03, gives UPS a fair value of 91,9 USD and a potential value of 107 USD. The conclusion is triangulated across multiple valuation models and weighted by reliability for United Parcel Service Inc.'s archetype; it is a dated research output, not a live price.
Should I buy UPS now?
Our latest published rating for UPS, analyzed 2026-10-03, is Hold. United Parcel Service Inc. trades close to fair value at the analysis-date price of 93,0 USD versus fair value of 91,9 USD; potential value is 107 USD. This is research for educational purposes, not personalized investment advice.
What are the biggest risks for UPS?
The dedicated bear-case section in our report analyzed 2026-10-03 documents United Parcel Service Inc.'s material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.
What is UPS's rating?
Our latest published rating for UPS, analyzed 2026-10-03, is Hold, with a published moat assessment of 7.5/10 (Narrow). It reflects our fair value of 91,9 USD, the potential value of 107 USD, and the price recorded at analysis (93,0 USD).
Este informe aún no se ha traducido. Actualice en unos minutos una vez que la cola de traducción se ponga al día.
§1 Resumen ejecutivoEN
Respuesta en 30 segundosHold
Precio frente a valor
Precio
$93.02
Valor razonable
$91.92
Valor potencial
$106.89
A fecha de
2026-10-02
Por qué puede funcionar
Accelerated domestic network operating leverage driven by 68.5% automated hub sortation, which lowers cost per piece by 28% and adds 337 million packages through automated handling YoY, combined with rapid scaling of high-margin biopharma cold chain connecting European manufacturers to the Cologne air hub, driving operating margin toward 9.80% and lifting consensus diluted EPS toward $8.07 by FY2027.
Qué cambiaría nuestra opinión
Amazon accelerates in-sourcing of delivery volume beyond expectations while commercial SMB parcel demand fails to absorb freed sortation capacity, causing U.S.
We assign a Hold rating to United Parcel Service Inc. with a synthesized fair value of USD 91.92 per share against a market price of USD 93.02, representing a -1.18% implied return (1.20% price premium), as post-peak automation efficiency gains balance ongoing volume transition risks and contractual labor cost inflation.
United Parcel Service is executing an operational restructuring across its domestic parcel infrastructure, seeking to rebuild operating margins following the multi-year volume surge and subsequent normalization of the pandemic period. The ratcheting of contractual labor expenses under the 2023 Teamsters union agreement coincided with declining parcel velocity, compressing consolidated GAAP operating profit from $13,094,000,000 in FY2022 to $7,867,000,000 in FY2025,. In response, UPS has accelerated automated hub conversions, reaching 68.5% automated domestic parcel sortation in Q2 2026, which delivers a 28% unit cost reduction in automated buildings and adds 337 million packages through automated handling year-on-year.
Simultaneously, management is actively managing down lower-yielding Amazon volume, reducing Amazon's revenue concentration from 11.8% to 10.6% in FY2025. This intentional capacity reallocation aims to reorient network throughput toward higher-yielding commercial SMB accounts and specialized temperature-controlled healthcare logistics,. Capital intensity has crested, with FY2025 capex moderating to $3,685,000,000 (4.16% of revenue) from peak levels of $5,158,000,000 in FY2023, supporting $4,765,000,000 in free cash flow.5,6,7,8
Our synthesized valuation midpoint of USD 91.92 balances enterprise cash flow lenses against earnings power models, reflecting a disciplined 13.5x terminal multiple and steady operating margin normalization toward 9.80% by FY2030. At current market levels of USD 93.02, UPS trades at a 1.20% premium to fair value with an implied return of -1.18%, leaving minimal cushion against potential fixed-cost deleveraging if replacement SMB volumes lag. While the current 7.05% dividend yield provides income support, capital allocation must prioritize balance sheet deleveraging against $28,672,999,424 in total debt, justifying a Hold rating.4
Structural Hub Automation Unit-Cost Advantage
UPS has automated 68.5% of its U.S. package volume, processing 337 million more packages automated YoY at a 28% lower cost per piece, unlocking structural operating leverage as post-contract wage inflation normalizes.5
Premium Healthcare Cold-Chain and International Exposure
Specialized pharmaceutical cold-chain logistics connected to the Cologne air hub and expanding non-U.S. revenue ($21,229,000,000 in FY2025) generate resilient, high-margin revenue insulated from domestic consumer parcel cycles.5,8
Post-Peak Capex Normalization Defending Capital Returns
Capital expenditures have normalized to $3,685,000,000 in FY2025 from peak levels ($5,158,000,000 in FY2023), supporting $4,765,000,000 in free cash flow that underpins an attractive $6.56 annual dividend distribution.6,7
Recomendación de la casa
Hold. United Parcel Service trades at USD 93.02 against our synthesized fair value of USD 91.92, offering a -1.18% implied return. Current valuation adequately prices operational turnaround progress while leaving minimal margin of safety for execution friction.
Descripción general de la empresa
United Parcel Service Inc. is a global integrated logistics carrier providing package and document delivery, freight forwarding, and specialized supply chain services across more than 200 countries and territories. Founded in 1907 and headquartered in Atlanta, Georgia, the company operates through three principal reporting segments: U.S. Domestic Package, International Package, and Supply Chain Solutions. In FY2025, consolidated revenue totaled $88,661,000,000, with the United States generating $67,432,000,000 (76.06%) and international geographic operations generating $21,229,000,000 (23.94%).
The company serves commercial business-to-business (B2B), business-to-consumer (B2C), and enterprise accounts through a multi-modal fleet of over 500 owned and chartered aircraft, advanced mechanized sortation hubs, and extensive ground delivery vehicles. While Amazon.com, Inc. remains its largest single customer, accounting for 10.6% of consolidated revenue in FY2025, UPS is actively pivoting network capacity toward higher-margin small and medium-sized businesses and specialized healthcare cold-chain logistics,.
§2 Caso bajistaEN
Under a synchronized macroeconomic contraction and sustained freight downcycle, commercial and consumer package volume growth stagnates, fixed network overhead deleverages from the intentional Amazon drawdown, and contractual union wage floors prevent immediate labor cost adjustments. With total debt at $28,672,999,424 and an annual dividend commitment of $5,398,000,000 that already exceeded FY2025 free cash flow of $4,765,000,000, operating income would compress toward $6.0B and diluted EPS would drop below $6.50, forcing UPS to rely on debt financing or curtail capital reinvestment.
U.S. Domestic Package operating margin contracts under fixed-cost deleveraging.
Consolidated revenue growth stalls as commercial replacement volumes lag.
Consolidated FY2027 diluted EPS contracts toward consensus low of $7.12.1
Free cash flow remains constrained, widening the cash deficit relative to dividend distributions.
In the Bear case, persistent macroeconomic freight softness dampens commercial parcel volume while Amazon accelerates captive delivery diversion faster than anticipated. Stranded sorting capacity and contractual union wage inflation compress domestic operating margin. Free cash flow falls short of covering the annual dividend obligation, elevating debt-financing requirements against $28,672,999,424 in total debt and suppressing diluted EPS toward the low estimate of $7.12.
Cómo puede fallar esta tesis
Severe Domestic Parcel Deleveraging from Accelerated Amazon In-Sourcing
Amazon represents 10.6% of consolidated revenue ($9,398M). If Amazon accelerates diversion of delivery volume to its captive network faster than commercial SMB volume can backfill sort hubs, U.S. Domestic Package operating margin drops from 6.60% ($3,926,000,000 on $59,519,000,000,) below 5.0%, severely depressing consolidated operating profit below $6.0B.5,8
FV impact
-14.6%
Operating margin 3 points lower throughout
Trigger
Within 12 months
Señales de alerta temprana a vigilar
Los cinco acontecimientos que debilitarían nuestra tesis de inversión.
United Parcel Service commands a Narrow economic moat supported by efficient scale across its global pickup and delivery network, cost advantages from automated hub sortation, and switching costs in specialized healthcare logistics. Replicating UPS's integrated air-ground infrastructure—encompassing hundreds of aircraft, vast delivery fleets, and intermodal sorting hubs that moved $88,661,000,000 in goods during FY2025 —would require massive capital commitments that prospective entrants cannot economically justify. The company's delivery density across residential and commercial routes provides a powerful barrier against competitors seeking to match its reach and service frequency.
A core pillar strengthening UPS's cost advantage is its aggressive automation program across domestic sortation facilities. By the second quarter of 2026, 68.5% of domestic volume was processed through automated hubs, handling 337 million more automated packages year-on-year. Management confirmed that automated facilities achieve a 28% lower unit handling cost compared to non-automated facilities, insulating margins against contractual wage increases under the Teamsters collective bargaining agreement. In addition, proprietary pharmaceutical cold-chain infrastructure, such as dedicated European refrigerated transport feeding the Cologne air hub, generates high-margin international logistics revenue ($2,873,000,000 operating income on $18,576,000,000 revenue in FY2025,) characterized by strict regulatory compliance and elevated customer switching costs.
The economic moat is held at Narrow rather than Wide due to labor rigidity under collective bargaining and the pricing power of large enterprise customers. Consolidated operating income contracted from $13,094,000,000 in FY2022 to $7,867,000,000 in FY2025, demonstrating how wage step-ups can constrain margin conversion during volume normalization. Furthermore, Amazon's aggressive expansion of its captive delivery network has forced UPS to manage an intentional glide-down in Amazon revenue share from 11.8% to 10.6%, proving that major retail shippers retain meaningful countervailing power. Nevertheless, ROIC of 15.62% solidly exceeds enterprise WACC of 8.3112%, confirming durable economic profit generation.
Beneficio económico
UPS generates structural economic profit, evidenced by latest ROIC of 15.62% comfortably exceeding its enterprise WACC of 8.3112% and cost of equity of 9.6599%, providing a resilient economic spread of over 730 basis points.2
7.5/ 10
Narrow
Sources of advantage
01Efficient Scale in Global Delivery Network — UPS operates an integrated multi-modal logistics network that would require tens of billions of dollars to replicate, handling $88,661,000,000 in revenue in FY2025 across ground and air networks that new entrants cannot match economically.Wide
02Cost Advantage via Automated Sortation Hubs — By the end of Q2 2026, 68.5% of U.S. volume flowed through automated buildings, handling 337 million more automated packages YoY, with unit handling costs in automated buildings 28% lower than non-automated facilities.Moderate
03High Switching Costs in Specialized Healthcare Logistics —
Amenazas conocidas al foso
Amenaza
Severidad
Cronograma
Mitigación
Contractual union wage step-ups under the Teamsters labor agreement compressing operating margins.
high
Ongoing through 2028
Accelerating automated hub sortation to 68% to reduce variable labor touchpoints and re-optimizing route design.5
The highlighted cell is Fair value when every assumption sits at its base level ($91.92). Each row and column shows what Fair value becomes when one assumption moves.
Free cash flow to the firm stays positive in the first projected year at $5.3B after modeled reinvestment of $1.0B, with terminal value at 77.3% of enterprise value. A sudden drop in free cash flow is not projected unless capital spending relative to revenue, reinvestment, or gross margin resets materially.
In the Base case, UPS executes on its core operational restructuring. Domestic hub automation increases to planned levels, holding per-piece cost growth below base pricing gains of 250 to 350 basis points. Amazon customer concentration continues to glide down from 10.6% as higher-yielding commercial SMB and healthcare shipments backfill capacity. Consolidated revenue expands at 3.10% in FY2026 to $91,409,491,000 and 3.79% in FY2027 to $94,873,910,709, while operating margin recovers from 8.87% sequentially through FY2026 and FY2027. Diluted EPS recovers from $6.56 to $7.20 in FY2026 and $8.07 in FY2027. Free cash flow expands to cover the annual dividend, supporting the synthesized fair value midpoint of $91.92 based on a 13.5x terminal P/E multiple.1
Commercial SMB volume rapidly replaces shed Amazon volume with superior parcel yield.
§7 Árbol de decisión de resultadosEN
Superado
Upgrade the rating; Verify that unit handling cost savings in automated buildings maintain momentum into peak season, confirm that commercial SMB package yield fully offsets the Amazon glide-down, and evaluate incremental allocation.
Accelerated domestic operating marginleverage confirms that automated hub sortation is structurally overcoming union wage step-ups and driving earnings recovery toward top-end consensus of $8.66.
En línea
Maintain Hold; Maintain current allocation, monitor progress toward full automation milestones, and track trailing free cash flow to ensure organic dividend coverage.
Financial results tracking consensus indicate that operational restructuring and the Amazon glide-down remain on schedule, supporting projected FY2026 diluted EPS of $7.20 and aligning with our synthesized fair value of $91.92.
Fallo
Downgrade the rating; Re-evaluate normalized operating margin assumptions, scrutinize balance sheet leverage against dividend outlays, and review position for reduction.
Disparador: Quarterly consolidated revenue decelerating below expectations, domestic operating margin contracting under cost deleverage, or quarterly diluted EPS falling short of consensus
A domestic margin contraction proves that stranded capacity from the Amazon drawdown and labor inflation are overpowering automation gains, threatening free cash flow dividend coverage.
Calidad de los beneficios
UPS exhibits solid accounting quality, with FY2025 GAAP diluted EPS of $6.56 reconciling closely to net income of $5,572,000,000 divided by 850,000,000 diluted shares. Cash conversion was sound, with operating cash flow of $8,450,000,000 substantially exceeding net income. However, working capital concentration remains a watchpoint, as Amazon accounted for 13.6% of net accounts receivable at year-end 2025 compared to 12.8% in 2024, requiring ongoing scrutiny of receivables collection during the volume glide-down.7,8
Métricas a vigilar antes de la publicación
01
Métrica:
Automated Domestic Sortation Hub Penetration
ActualReached 68.5% of domestic volume by Q2 2026, equivalent to 337 million more packages automated YoY.
Por qué importa
Primary structural driver of unit cost reduction; automated facilities achieve 28% lower handling cost per piece, essential for expanding domestic operating margins.5
In FY2025, UPS generated operating cash flow of $8,450,000,000 and spent $3,685,000,000 on capital expenditures, resulting in free cash flow of $4,765,000,000. Free cash flow conversion was robust at 85.5% of net income ($5,572,000,000). However, dividend payments of $5,398,000,000 exceeded free cash flow by $633,000,000, producing a cash coverage deficit that required temporary balance sheet absorption. As network automation capital outlays normalize and NOPAT rises from $6,339,138,509 in FY2026 to $6,875,094,864 in FY2027 under reinvestment rates of 16.0% to 18.0%, forecast FCFF increases to $5,324,876,348 in FY2026 and $5,637,577,788 in FY2027, restoring organic cash flow coverage of dividend distributions.6,7
While operating income fell from $13,094,000,000 in FY2022 to $7,867,000,000 in FY2025 due to volume normalization and contractual labor costs, economic returns remain solidly value-accretive. Operating margin recovery from 8.87% in FY2025 toward 9.80% by FY2030, paired with normalized capital reinvestment (scaling down from 16.0% to 14.0% of NOPAT), supports an improving return on invested capital trajectory over the forecast period.
ROIC of 15.62% generates a 731 bps economic spread above the firm's computed WACC of 8.3112% and exceeds cost of equity of 9.6599%.
Domestic volume through automated hubs reached 68.5%, handling 337 million more packages automated YoY with a 28% lower unit handling cost.
Provides the structural unit-cost reduction needed to expand U.S. Domestic Package operating margin from 6.60% ($3,926,000,000 on $59,519,000,000 in FY2025,) toward 8.5%+, offsetting contractual wage increases.
Ingresos más recientes88,7 mil M US$CAGR de ingresos +4,1 %
Margen operativo8,9 %10 periodos fiscales
Flujo de caja libre más reciente4765 M US$FY2025
Deuda neta17,7 mil M US$FY2025
Desglose de la cuenta de resultadosCómo la escala del negocio se convierte en beneficio declarado.
StockMarketAgent.AI
Ingresos88,7 mil M US$Coste de ventas−72,6 mil M US$Beneficio bruto16 mil M US$Gastos operativos−8163 M US$Beneficio operativo7867 M US$Partidas no operativas e impuestos−2295 M US$Beneficio neto5572 M US$
Datos del historial financiero
Ingresos
88.661.000.000 US$
Coste de ventas
72.631.000.000 US$
Beneficio bruto
16.030.000.000 US$
Gastos operativos
8.163.000.000 US$
Beneficio operativo
7.867.000.000 US$
Partidas no operativas e impuestos
-2.295.000.000 US$
Beneficio neto
5.572.000.000 US$
Resumen del balanceCómo se mantienen y financian los activos declarados en el período seleccionado.
StockMarketAgent.AI
Composición de activosFinanciado por
Activos totales73,1 mil M US$Efectivo5887 M US$Activos corrientes19 mil M US$Pasivos totales56,8 mil M US$Pasivos corrientes15,6 mil M US$Patrimonio neto16,3 mil M US$
Datos del desglose del balance
Activos totales
73.090.000.000 US$
Efectivo
5.887.000.000 US$
Activos corrientes
19.045.000.000 US$
Pasivos totales
56.835.000.000 US$
Pasivos corrientes
15.620.000.000 US$
Patrimonio neto
16.255.000.000 US$
Puente de flujo de cajaCómo el flujo de caja operativo se convirtió en flujo de caja libre en FY2025.
StockMarketAgent.AI
Conciliación del flujo operativo
Beneficio neto5572 M US$Depreciación y amortización+3000 M US$Compensación basada en acciones+73 M US$Otros ajustes operativos−195 M US$Flujo de caja operativo8450 M US$
Conciliación del efectivo inicial al final
Efectivo inicial6112 M US$Flujo de caja operativo+8450 M US$Flujo de inversión−4735 M US$Flujo de financiación−4141 M US$Efecto del tipo de cambio+201 M US$Efectivo final5887 M US$
8450 M US$ − 3685 M US$Flujo de caja libre 4765 M US$
Datos del puente de flujo de caja
Beneficio neto
5.572.000.000 US$
Entrada operativa
8.645.000.000 US$
Depreciación y amortización
3.000.000.000 US$
Compensación basada en acciones
73.000.000 US$
Flujo de caja operativo
8.450.000.000 US$
Salida operativa
195.000.000 US$
Efectivo disponible
14.763.000.000 US$
Efectivo inicial
6.112.000.000 US$
Efecto del tipo de cambio
201.000.000 US$
Salida de inversión
4.735.000.000 US$
Capex
3.685.000.000 US$
Otras actividades de inversión
1.050.000.000 US$
Salida de financiación
4.141.000.000 US$
Efectivo final
5.887.000.000 US$
Flujo de inversión
-4.735.000.000 US$
Flujo de financiación
-4.141.000.000 US$
Ingresos por regiónProporción de los ingresos totales de 2025-12-31.
88,7 mil M US$Ingresos totales
Ingresos por regiónProporción
United States67,4 mil M US$76,1 %−4,2 % interanual
Non Us21,2 mil M US$23,9 %+2,6 % interanual
Fuente: SEC EDGAR · Presentado 2026-02-17 · SEC EDGAR
Datos de composición de ingresos: Ingresos por región
Ingresos por región
Ingresos
Proporción
interanual
United States
67,4 mil M US$
76,1 %
-4,2 %
Non Us
21,2 mil M US$
23,9 %
2,6 %
Ingresos y beneficiosCómo la escala del negocio se convierte en beneficio declarado.
Efectivo y deudaLiquidez disponible frente al endeudamiento total.
Generación de efectivoFlujo de caja operativo frente al flujo de caja libre.
RentabilidadEvolución de los márgenes bruto, operativo y neto.
Datos financieros puntuales utilizados en el análisis del 2026-10-03.
Datos del historial financiero
Período
Ingresos
EBITDA
Beneficio neto
Flujo de caja operativo
Flujo de caja libre
Capex
Depreciación y amortización
Compensación basada en acciones
Recompras de acciones
Dividendos pagados
Emisión neta de deuda
Flujo de inversión
Flujo de financiación
Efectivo inicial
Efectivo final
Efectivo e inversiones
Deuda total
Margen operativo
ROIC
WACC
Diferencial ROIC−WACC
2016-12-31
61,6 mil M US$
7691 M US$
3422 M US$
6473 M US$
3508 M US$
2965 M US$
2224 M US$
591 M US$
2678 M US$
2643 M US$
—
-2563 M US$
-3140 M US$
—
3921 M US$
4567 M US$
15,6 mil M US$
12,5 %
—
5,5 %
—
2017-12-31
66,6 mil M US$
9811 M US$
4905 M US$
1479 M US$
-3748 M US$
5227 M US$
2282 M US$
584 M US$
1813 M US$
2771 M US$
—
-4971 M US$
3287 M US$
3921 M US$
3769 M US$
4069 M US$
23,9 mil M US$
11,3 %
—
5,0 %
—
2018-12-31
71,9 mil M US$
8798 M US$
4791 M US$
12,7 mil M US$
6428 M US$
6283 M US$
2207 M US$
634 M US$
1011 M US$
3011 M US$
—
-6330 M US$
-5692 M US$
3769 M US$
4367 M US$
5035 M US$
22,3 mil M US$
9,8 %
—
6,0 %
—
2019-12-31
74,1 mil M US$
8641 M US$
4440 M US$
8639 M US$
2259 M US$
6380 M US$
2360 M US$
915 M US$
1004 M US$
3194 M US$
—
-6061 M US$
-1727 M US$
4367 M US$
5238 M US$
5741 M US$
24,9 mil M US$
10,5 %
—
5,3 %
—
2020-12-31
84,6 mil M US$
5226 M US$
1343 M US$
10,5 mil M US$
5047 M US$
5412 M US$
2698 M US$
796 M US$
224 M US$
3374 M US$
—
-5283 M US$
-4517 M US$
5238 M US$
5910 M US$
6316 M US$
24,5 mil M US$
9,1 %
—
3,3 %
—
2021-12-31
97,3 mil M US$
20,2 mil M US$
12,9 mil M US$
15 mil M US$
10,8 mil M US$
4194 M US$
2953 M US$
878 M US$
500 M US$
3437 M US$
—
-3818 M US$
-6823 M US$
5910 M US$
10,3 mil M US$
10,6 mil M US$
21,7 mil M US$
13,2 %
—
4,3 %
—
2022-12-31
100,3 mil M US$
18,7 mil M US$
11,5 mil M US$
14,1 mil M US$
9335 M US$
4769 M US$
3188 M US$
1568 M US$
3500 M US$
5114 M US$
-2304 M US$
-7472 M US$
-11,2 mil M US$
10,3 mil M US$
5602 M US$
7595 M US$
19,4 mil M US$
13,0 %
—
6,7 %
—
2023-12-31
91 mil M US$
12,7 mil M US$
6708 M US$
10,2 mil M US$
5080 M US$
5158 M US$
2800 M US$
220 M US$
2250 M US$
5372 M US$
2272 M US$
-7133 M US$
-5534 M US$
5602 M US$
3206 M US$
6072 M US$
22 mil M US$
10,0 %
—
6,4 %
—
2024-12-31
91,1 mil M US$
11,9 mil M US$
5782 M US$
10,1 mil M US$
6213 M US$
3909 M US$
3000 M US$
24 M US$
500 M US$
5399 M US$
-974 M US$
-217 M US$
-6850 M US$
3206 M US$
6112 M US$
6318 M US$
21 mil M US$
9,3 %
—
6,9 %
—
2025-12-31
88,7 mil M US$
11,9 mil M US$
5572 M US$
8450 M US$
4765 M US$
3685 M US$
3000 M US$
73 M US$
1000 M US$
5398 M US$
2084 M US$
-4735 M US$
-4141 M US$
6112 M US$
5887 M US$
5887 M US$
23,6 mil M US$
8,9 %
—
7,1 %
—
§9 Comparación de valoración con pares
Valor razonableReport-date price
United Parcel Service Inc.UPS
Precio / valor razonable
Valor razonable91,92 US$Report-date price93,02 US$
Fecha de evaluación
Ventaja competitivaNarrow
Cuadro de mando de inversión61 / 100
FedEx CorporationFDX
Precio / valor razonable
Valor razonable251,53 US$Report-date price290,36 US$
Fecha de evaluación
Ventaja competitivaNarrow
Cuadro de mando de inversión58 / 100
Illinois Tool Works Inc.ITW
Precio / valor razonable
Valor razonable195,02 US$Report-date price262,92 US$
Fecha de evaluación
Ventaja competitivaWide
Cuadro de mando de inversión61 / 100
United Parcel Service Inc.UPS
Precio / valor razonable
Valor razonable91,92 US$Report-date price93,02 US$
United Parcel Service Inc. (UPS) trades at 12.1x forward earnings against a peer median of 21.4x. Its EV/EBITDA of 8.5x compares with a peer median of 14.2x. The comparison uses 4 peers: FedEx Corporation, Illinois Tool Works Inc., Honeywell International Inc. and Rockwell Automation Inc., as of 2026-10-03.
§10 Industria y cicloEN
Fase del ciclo
Contraction
UPS capital expenditures moderated to $3,685,000,000 in FY2025 (4.16% of revenue), down from peak post-pandemic build-out levels of $5,158,000,000 in FY2023. Hub automation reached 68%, allowing net reinvestment rates to scale down from 16.0% in FY2026 to 14.0% by FY2030.5,7
Ciclo alcista
In an industrial parcel upcycle, consumer e-commerce volume inflects positively, commercial B2B manufacturing shipments accelerate, and global trade velocity expands cross-border air freight demand. With automated sorting capacity absorbing 337 million more packages YoY without proportional labor additions, operating leverage drives parcel unit margins higher and creates pricing power across premium delivery tiers.
Ciclo bajista
In an industrial freight downcycle, manufacturing activity contracts, retail inventory destocking suppresses package demand, and industry-wide overcapacity triggers aggressive price competition. Under high fixed routing costs and contractual union wage floors, network utilization declines, stranding sorting capacity and sharply compressing domestic parcel operating margins.
Tendencias seculares
Tendencia
Impacto
Nota
Logistics Hub Automation and Robotics Sortation
positive
The migration of package sorting toward automated facilities (reaching 68% of domestic volume) drives a 28% reduction in piece handling costs, structurally lowering variable labor touchpoints across high-density sort hubs.
Specialized Healthcare and Biopharma Cold-Chain Logistics
positive
Rapidly growing demand for temperature-controlled biopharma and vaccine logistics, supported by dedicated refrigerated transport feeding the Cologne air hub, expands non-cyclical, premium-margin freight across international operations ($21,229,000,000 non-U.S. in FY2025).
Posicionamiento
UPS maintains a premier global positioning as an integrated logistics carrier with extensive first-to-last-mile delivery density, generating $88,661,000,000 in revenue in FY2025. By raising automated facility volume to 68.5%, actively lowering Amazon dependency to 10.6%, and scaling high-margin biopharma logistics through Cologne, UPS is repositioning toward high-yield commercial volumes, though near-term margin flexibility is constrained by contractual labor rates and $28,672,999,424 in total debt.4,5,7,8
§11 Gestión de posiciónEN
Tamaño de posición
2-3%
UPS carries a Hold rating with shares trading at $93.02, closely tracking synthesized fair value of $91.92 (-1.18% implied return). For income-oriented portfolios, a neutral 2-3% allocation is justified by the 7.05% dividend yield ($6.56 per share), but position sizing should not be increased until domestic operating margins verify sustained operational leverage from 68% hub automation and free cash flow sustainably covers dividend distributions.5
Riesgo
Risk management focuses on monitoring balance sheet leverage ($28,672,999,424 total debt) and dividend sustainability. With dividends paid of $5,398,000,000 exceeding FY2025 free cash flow of $4,765,000,000, portfolio exposure should be kept at neutral benchmark weighting until operating cash flow sustainably surpasses $9.0B and capex normalizes below $4.0B. Any acceleration in captive Amazon parcel diversion that is not matched by commercial SMB backfill represents the primary operational signal to reduce position weight.
Tramos de entrada
Nivel
Acción
Por qué
$91.00 - $93.02
Maintain current holding; no new accumulation at current levels
Shares trade in line with synthesized fair value of $91.92 (-1.18% implied return); fair value parity warrants maintaining allocation without adding capital.
$80.00 - $83.50
Initiate incremental tranche for income-focused accounts
Provides a 10-15% discount to fair value, aligning with forward earnings valuation baseline of $83.58 and offering an enhanced buffer.
Tramos de salida
Nivel
Acción
$100.00 - $102.00
Trim 25% of position to lock in gains as price approaches DCFintrinsic value
$106.89
Trim an additional 25-50% of position at the upper boundary of the fair value range
UPS trades at 12.05x forward earnings, representing a discount to peer FedEx at 13.87x, but sits near our fair value of USD 91.92. With enterprise debt at $28,672,999,424, the valuation offers fair compensation for mature parcel logistics assets without providing an attractive margin of safety for new purchases.3,4
Income / Dividend Investor
Hold
The $6.56 annual dividend yields an attractive income stream supported by normalized capex ($3,685,000,000 in FY2025) and operating cash flow of $8,450,000,000. However, because FY2025 free cash flow of $4,765,000,000 trailed total dividend payouts of $5,398,000,000, dividend growth will remain minimal while cash conversion recovers.6,7
Growth / Momentum Investor
Avoid
With 5-year revenue CAGR contracting at -4.04% and near-term revenue expansion projected at a modest 3.10% to 3.79%, UPS lacks top-line momentum. The deliberate Amazon glide-down creates transitional headwinds that limit rapid multiple re-rating compared to faster-growing industrial peers.1
§14 Recomendación finalEN
Acción
Mantener
We recommend a Hold rating on United Parcel Service Inc. At USD 93.02, the stock trades at a 1.20% premium to our synthesized fair value of USD 91.92 (-1.18% implied return). While 68% hub automation and disciplined capex normalization protect the $6.56 dividend, current prices leave no margin of safety against potential fixed-cost deleveraging from Amazon's volume drawdown.
Investors should maintain existing positions to collect the well-supported dividend yield while awaiting tangible evidence of U.S. Domestic Package operating margins accelerating toward 8.0%+ and successful commercial SMB volume backfill before deploying incremental capital.
§15Your notes
Capture your own thesis, position size, and follow-up questions. Stays on this device, only you can see it.
Private notes
Visible only to you. Synced to this device.
0 chars
Sources
The records this analysis drew on, as they stood when it was run.
Not every cited input appears here: internal calculations and intermediate model outputs have no external record, and some citations could not be matched to one.
Freight Recession and Multiple Contraction to Trough Peer Valuation
UPS currently trades at forward P/E of 12.05x, while peer FedEx trades at 13.87x. If prolonged macro weakness suppresses package volume growth below 1.0% and consensus FY2027 EPS of $8.07 is revised downward toward $6.97, market multiple derates by 20% to trough levels near 10.5x-10.8x.1,3,4
FV impact
-6.4%
Terminal multiple 20% lower
Trigger
Within 18 months
Signals that higher-yielding commercial SMB volumes are failing to backfill vacated sorting capacity, creating stranded fixed network overhead.
Actual:10.6% in FY2025
Alerta siVolume runoff causing consolidated revenue growth to contract at or below -2.0%
Forces additional debt issuance against $28,672,999,424 in total debt to fund dividend distributions, threatening balance sheet health and capital allocation flexibility.
Actual:FCF of $4,765M vs $5,398M dividend obligation in FY2025
Erosion of premium cross-border yields or escalation of flight routing and airspace costs, removing the primary margin cushion offsetting domestic parcel delivery.
Excessive balance sheet debt incurred to fund capital return deficits restricts network reinvestment capacity and raises enterprise cost of capital.
Actual:$28,672,999,424 in total debt with 26.6% debt weight,
Alerta siTotal debt exceeding $32,000,000,000 or net interest expense exceeding $1,200,000,000
Specialized end-to-end temperature-controlled pharmaceutical cold chain networks connecting European vaccine manufacturers directly to the Cologne air hub command high client switching costs and sustain international operating margins of 15.47%.
Moderate
Amazon insourcing parcel logistics and expanding captive last-mile delivery networks.
high
12-24 months
Intentionally reducing Amazon customer concentration from 11.8% to 10.6% to liberate hub capacity for higher-yielding commercial SMB accounts.5,8
Aggressive commercial ground pricing from FedEx under unified network operations.
medium
Medium-term
Leveraging higher domestic delivery density and single-driver integrated pickups to defend base pricing with 250-350 bps growth.5
Discounted forecast-period cash flows (28,24 US$) plus discounted terminal value (96,13 US$) minus signed per current share (23,62 US$) equals the 101 US$ lens value shown above. Negative net debt is , so subtracting it raises value.
ActualFree cash flow generated was $4,765M in FY2025 against dividend distributions of $5,398M, while capex moderated to $3,685M.
Por qué importa
Measures capital allocation sustainability; free cash flow must expand to cover the $5,398M dividend commitment to avoid reliance on balance sheet debt.4
ActualAchieved 15.47% in FY2025 ($2,873M on $18,576M), supported by positive Asia lane volume momentum.
Por qué importa
Monitors the earnings contribution of premium cross-border freight and European healthcare cold chain, which provides the primary structural profit buffer for the company.5
Capital allocation is focused on funding the $6.56 annual dividend per share ($5,398,000,000 total distribution) while maintaining an investment-grade balance sheet. Total debt stood at $28,672,999,424 as of October 2026, resulting in a debt weight of 26.6%. Capital expenditure discipline has been demonstrated as outlays moderated to $3,685,000,000 in FY2025 from peak levels of $5,158,000,000 in FY2023. With annual depreciation at $3,000,000,000, net reinvestment is projected to scale from $1,014,262,162 in FY2026 (16.0% of NOPAT) to $1,102,926,407 in FY2030 (14.0% of NOPAT). Share repurchases remain deprioritized to preserve cash reserves until domestic margin expansion and cash conversion fully cover capital return obligations.
Intentional Amazon Drawdown Repositions Capacity for High-Yield Freight
Amazon customer concentration fell from 11.8% in FY2023-FY2024 to 10.6% in FY2025 ($9,398M), while base pricing maintains 250-350 bps growth.
De-risking contractual low-yield volume frees network capacity for higher-yielding commercial accounts, supporting top-line revenue recovery to $94,885,734,340 in FY2027.
International Operations Cushion Group Margins via Premium Logistics
International segment operating income reached $2,873,000,000 on $18,576,000,000 revenue in FY2025,, generating a 15.47% margin compared to 6.60% domestically.
Premium cross-border courier and temperature-controlled healthcare distribution generate resilient operating income, anchoring group profitability during domestic network transitions.
Honeywell International Inc.HON
Precio / valor razonable
Valor razonable193,44 US$Report-date price211,41 US$
Fecha de evaluación
Ventaja competitivaWide
Cuadro de mando de inversión66 / 100
Rockwell Automation Inc.ROK
Precio / valor razonable
Valor razonable162,13 US$Report-date price455,08 US$
E-Commerce In-Sourcing and Captive Last-Mile Delivery Expansion
negative
Large e-commerce platforms expanding captive logistics networks have increased industry capacity, prompting UPS's intentional reduction in Amazon revenue concentration from 11.8% to 10.6% to eliminate contractual low-yield package volume.
Provides an exceptional margin of safety, fully discounting persistent freight stagnation and customer transition friction while offering substantial long-term total return potential.
Flag heightened dividend coverage risk relative to the $5,398,000,000 dividend obligation, evaluate balance sheet debt, and trim position weight.
