How Does This Global Delivery Network Operate?
United Parcel Service (UPS) provides parcel delivery and logistics services, moving shipments through an integrated network. Its operations span pickup, transportation, sorting, and final-mile delivery for a broad customer base. The business is built around high-volume package flows and service reliability, with scale that supports network density. UPS is a large, publicly traded logistics operator with an equity value around USD 82.8 billion.
Are Margins Holding as Revenue Declines?
FundamentalsFor 2025, reported in USD, revenue was about USD 88.7 billion, down 2.6% year over year, while net income was USD 5.6 billion, translating to a 6.28% net profit margin on a trailing basis. Operating margin over the same period was 8.87%, alongside a gross margin of 83.19%.
Reinvestment and balance-sheet capacity show up clearly in the cash and spending lines. Depreciation and amortization totaled USD 3.7 billion and capital spending was USD 3.7 billion, putting upkeep and investment at roughly the same scale as the asset base turns over. UPS ended the year with USD 5.9 billion of cash against USD 608 million of total debt.
Is the Stock Fairly Priced Now?
DCF / MultiplesAt USD 97.57 per share, the stock sits within the DCF range that runs from USD 85.72 in a weaker scenario to USD 107.28 at the central estimate and USD 127.33 in a stronger outcome. On headline pricing, that aligns with a 14.78 trailing P/E and 8.43 EV/EBITDA.
Profitable but Growth Is Weak
TakeawayUPS is running a profitable network, but growth is currently negative. The case relies on revenue stabilizing while margins hold. Reinvestment needs to keep pace with the asset base. If volume stays soft, profit can compress quickly. Pricing is not demanding, but execution still has to stay consistent.