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United Parcel Service Inc. R logo

United Parcel Service Inc. R

UPAB.DE
46
Integrated Freight & Logistics · Industrials
Price
€87.53
-0.38 (-0.43%)
Market Cap
€74.40B
Exchange
Frankfurt Stock Exchange
Winston Score
46
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Weak
Cash Flow
Strong
Stability
Good
Valuation
Strong
Dividends
Good

Share count falling — buybacks

3.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 878.0M (2021) → 850.0M (2025)

Winston Score History

The full picture

UPS is one of the world's largest package delivery companies. It picks up boxes, envelopes, and freight from businesses and individuals and delivers them to homes and businesses across the globe. Its main customers are online retailers, healthcare companies, and small businesses that need reliable shipping.

UPS makes money by charging fees for each package it delivers, with prices based on size, weight, speed, and distance. It operates in over 220 countries and territories, with its largest business in the United States. Its competitive advantage comes from its massive network of planes, trucks, warehouses, and sorting facilities, which would cost billions of dollars and decades to replicate. The biggest risk UPS faces is slowing e-commerce growth combined with rising costs, since the company has been working to shrink its volume from its largest customer, Amazon, to focus on higher-margin deliveries — a strategy that reduces revenue in the short term but aims to improve profitability over time.

Score breakdown

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Quality

Profit per sale
Gross Margin
13.0%
Thin — 13.0% gross margin
Profit after running costs
Operating Margin
4.1%
Thin — 4.1% operating margin
Return on the money invested
ROCE
16.8%
Strong — 16.8% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
-0.5%
Shrinking sales (-0.5% YoY)
Profit growth
EPS YoY
-20.2%
Earnings shrinking (-20.2% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
194%
Turns 194% of profit into real cash
Spare cash per sale
FCF Margin
6.1%
Modest free cash flow (6.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
1.62
Elevated debt (1.62)
Covers its interest
Interest Cover
6.08x
Adequate interest coverage (6.1x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
16.3x
Fair value — P/E 16.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+4.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (16.3 → 12.1)

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Dividends

Dividend
Dividend Yield
6.35%
Healthy income — 6.35% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record
Dividend Growth
-6.0%
Dividend cut (-6.0% YoY) — warning sign

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