Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin6.0%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin4.1%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt33.2 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$20.6B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$3.1B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book4.97x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow$1.2B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income119.3%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$2.9B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About United Parcel Service, Inc.
United Parcel Service, Inc., a package delivery and logistics provider, offers transportation and delivery services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery services for express letters, documents, packages and palletized freight through air and ground services. The International Package segment provides small package operations in Europe, the Middle East and Africa, Canada and Latin America, and Asia. The company offers a range of guaranteed day- and time-definite international transportation services; day-definite services; cross-border ground package delivery; contract-only, e-commerce solutions for non-urgent, and cross-border shipments; and international service for urgent and palletized shipments. It also provides international air and ocean freight forwarding, contract logistics, customs brokerage and insurance, mail services, healthcare logistics, distribution, and post-sales services. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.
United Parcel Service, Inc., a package delivery and logistics provider, offers transportation and delivery services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery services for express letters, documents, packages and palletized freight through air and ground services. The International Package segment provides small package operations in Europe, the Middle East and Africa, Canada and Latin America, and Asia. The company offers a range of guaranteed day- and time-definite international transportation services; day-definite services; cross-border ground package delivery; contract-only, e-commerce solutions for non-urgent, and cross-border shipments; and international service for urgent and palletized shipments. It also provides international air and ocean freight forwarding, contract logistics, customs brokerage and insurance, mail services, healthcare logistics, distribution, and post-sales services. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering United Parcel Service, Inc. at $104.86.
The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.
At $104.86, the stock trades at a 376% premium to its Graham Number of $22.01. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q1 2026
Q4 2025
Gross Profit %
15.8%▼
20.8%
Operating Margin %
6.0%▼
10.5%
Net Income %
4.1%▼
7.3%
Diluted EPS
1.02▼
2.10
Balance Sheet Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Total Assets
$71.8B
$73.1B
N/A
Total Debt
$28.7B▲
$28.6B•
N/A
Working Capital
$3.1B▼
$3.4B•
N/A
Years to Pay Debt
33.17
15.96
N/A
Cash Flow Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Free Cash Flow
$1.2B▼
$2.6B•
N/A
Owner Earnings
$2.9B
$3.5B
N/A
CapEx % of Net Income
119.3%
40.0%
N/A
Income Statement
2026
2025
Tax Effect Of Unusual Items
28,413
15,431
Tax Rate For Calcs
0
0
Normalized EBITDA
2,252,000
3,547,000
Total Unusual Items
123,000
63,000
Total Unusual Items Excluding Goodwill
123,000
63,000
Net Income From Continuing Operation Net Minority Interest
864,000
1,791,000
Reconciled Depreciation
985,000
972,000
Reconciled Cost Of Revenue
17,843,000
19,395,000
EBITDA
2,375,000
3,610,000
EBIT
1,390,000
2,638,000
Net Interest Income
-266,000
-266,000
Interest Expense
266,000
266,000
Normalized Income
769,413
1,743,431
Net Income From Continuing And Discontinued Operation
864,000
1,791,000
Total Expenses
19,935,000
21,904,000
Rent Expense Supplemental
674,000
570,000
Total Operating Income As Reported
1,267,000
2,575,000
Diluted Average Shares
850,000
853,000
Basic Average Shares
850,000
849,000
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
864,000
1,791,000
Net Income Common Stockholders
864,000
1,791,000
Net Income
864,000
1,791,000
Net Income Including Noncontrolling Interests
864,000
1,791,000
Net Income Continuous Operations
864,000
1,791,000
Tax Provision
260,000
581,000
Pretax Income
1,124,000
2,372,000
Other Income Expense
123,000
63,000
Gain On Sale Of Security
123,000
63,000
Net Non Operating Interest Income Expense
-266,000
-266,000
Interest Expense Non Operating
266,000
266,000
Operating Income
1,267,000
2,575,000
Operating Expense
2,092,000
2,509,000
Other Operating Expenses
2,092,000
2,509,000
Gross Profit
3,359,000
5,084,000
Cost Of Revenue
17,843,000
19,395,000
Total Revenue
21,202,000
24,479,000
Operating Revenue
21,202,000
24,479,000
Balance Sheet
2026
2025
2024
Treasury Shares Number
100
100
Ordinary Shares Number
849,533
848,900
Share Issued
849,633
849,000
Net Debt
18,584,000
18,240,000
Total Debt
28,662,000
28,590,000
Tangible Book Value
5,986,000
6,369,000
Invested Capital
40,149,000
40,354,000
Working Capital
3,120,000
3,425,000
Net Tangible Assets
5,986,000
6,369,000
Capital Lease Obligations
4,276,000
4,463,000
Common Stock Equity
15,763,000
16,227,000
Total Capitalization
39,512,000
39,746,000
Total Equity Gross Minority Interest
15,791,000
16,255,000
Minority Interest
28,000
28,000
Stockholders Equity
15,763,000
16,227,000
Other Equity Interest
5,000
5,000
Gains Losses Not Affecting Retained Earnings
-4,250,000
-4,208,000
Other Equity Adjustments
-4,250,000
-4,208,000
Treasury Stock
5,000
5,000
Retained Earnings
19,622,000
20,151,000
Additional Paid In Capital
382,000
275,000
Capital Stock
9,000
9,000
Common Stock
9,000
9,000
Total Liabilities Net Minority Interest
56,018,000
56,835,000
Total Non Current Liabilities Net Minority Interest
41,344,000
41,215,000
Other Non Current Liabilities
3,624,000
3,739,000
Employee Benefits
6,665,000
6,567,000
Non Current Pension And Other Postretirement Benefit Plans
6,665,000
6,567,000
Non Current Deferred Liabilities
3,772,000
3,690,000
Non Current Deferred Taxes Liabilities
3,772,000
3,690,000
Long Term Debt And Capital Lease Obligation
27,283,000
27,219,000
Long Term Capital Lease Obligation
3,534,000
3,700,000
Long Term Debt
23,749,000
23,519,000
Current Liabilities
14,674,000
15,620,000
Other Current Liabilities
1,635,000
1,375,000
Current Debt And Capital Lease Obligation
1,379,000
1,371,000
Current Capital Lease Obligation
742,000
763,000
Current Debt
637,000
608,000
Other Current Borrowings
637,000
608,000
Pensionand Other Post Retirement Benefit Plans Current
1,414,000
1,389,000
Current Provisions
1,095,000
1,137,000
Payables And Accrued Expenses
9,151,000
10,348,000
Current Accrued Expenses
3,238,000
3,715,000
Payables
5,913,000
6,633,000
Total Tax Payable
Income Tax Payable
Accounts Payable
5,913,000
6,633,000
Total Assets
71,809,000
73,090,000
Total Non Current Assets
54,015,000
54,045,000
Other Non Current Assets
1,971,000
2,053,000
Non Current Deferred Assets
154,000
140,000
Non Current Deferred Taxes Assets
154,000
140,000
Goodwill And Other Intangible Assets
9,777,000
9,858,000
Other Intangible Assets
3,981,000
4,021,000
Goodwill
5,796,000
5,837,000
Net PPE
42,113,000
41,994,000
Accumulated Depreciation
-37,971,000
-37,431,000
Gross PPE
80,084,000
79,425,000
Construction In Progress
2,241,000
2,136,000
Other Properties
6,755,000
6,898,000
Machinery Furniture Equipment
20,183,000
19,817,000
Buildings And Improvements
12,647,000
12,592,000
Land And Improvements
2,038,000
2,046,000
Current Assets
17,794,000
19,045,000
Other Current Assets
2,044,000
1,210,000
Inventory
739,000
826,000
Receivables
9,948,000
11,209,000
Accounts Receivable
9,948,000
11,209,000
Allowance For Doubtful Accounts Receivable
-188,000
-180,000
Gross Accounts Receivable
10,136,000
11,389,000
Cash Cash Equivalents And Short Term Investments
5,802,000
5,887,000
Other Short Term Investments
206,000
Cash And Cash Equivalents
5,802,000
5,887,000
Cash Flow
2026
2025
2024
Free Cash Flow
1,193,000
2,586,000
Repurchase Of Capital Stock
0
0
Repayment Of Debt
-46,000
-924,000
Issuance Of Debt
0
0
Issuance Of Capital Stock
28,000
26,000
Capital Expenditure
-1,031,000
-716,000
End Cash Position
5,802,000
5,887,000
Beginning Cash Position
5,887,000
6,764,000
Effect Of Exchange Rate Changes
-37,000
16,000
Changes In Cash
-48,000
-893,000
Financing Cash Flow
-1,328,000
-2,194,000
Cash Flow From Continuing Financing Activities
-1,328,000
-2,194,000
Net Other Financing Charges
42,000
57,000
Cash Dividends Paid
-1,352,000
-1,353,000
Common Stock Dividend Paid
-1,352,000
-1,353,000
Net Common Stock Issuance
28,000
26,000
Common Stock Payments
0
0
Common Stock Issuance
28,000
26,000
Net Issuance Payments Of Debt
-46,000
-924,000
Net Long Term Debt Issuance
-46,000
-924,000
Long Term Debt Payments
-46,000
-924,000
Long Term Debt Issuance
0
0
Investing Cash Flow
-944,000
-2,001,000
Cash Flow From Continuing Investing Activities
-944,000
-2,001,000
Net Other Investing Changes
5,000
25,000
Net Investment Purchase And Sale
0
64,000
Sale Of Investment
0
64,000
Purchase Of Investment
0
0
Net Business Purchase And Sale
82,000
-1,374,000
Sale Of Business
82,000
115,000
Purchase Of Business
0
-1,489,000
Capital Expenditure Reported
-1,031,000
-716,000
Operating Cash Flow
2,224,000
3,302,000
Cash Flow From Continuing Operating Activities
2,224,000
3,302,000
Change In Working Capital
139,000
-240,000
Change In Other Current Liabilities
29,000
11,000
Change In Other Current Assets
-27,000
145,000
Change In Payables And Accrued Expense
-948,000
840,000
Change In Accrued Expense
-453,000
229,000
Change In Payable
-495,000
611,000
Change In Account Payable
-495,000
611,000
Change In Receivables
1,085,000
-1,236,000
Changes In Account Receivables
1,085,000
-1,236,000
Other Non Cash Items
15,000
338,000
Stock Based Compensation
24,000
32,000
Provisionand Write Offof Assets
16,000
160,000
Deferred Tax
45,000
26,000
Deferred Income Tax
45,000
26,000
Depreciation Amortization Depletion
985,000
972,000
Depreciation And Amortization
985,000
972,000
Operating Gains Losses
136,000
223,000
Pension And Employee Benefit Expense
136,000
223,000
Net Income From Continuing Operations
864,000
1,791,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $21.5B▼ $21.2B-1.6%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 17.1%▼ 15.8%-1.2pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 5.9%▼ 6.0%+0.1pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 5.5%▼ 4.1%-1.4pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$21.2B/qtr (≈$84.8B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.21x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$1.2B
vs Positive
Operating Cash Flow
$2.2B
Latest quarter · Buffett's cash reality check
ROIC
1.8%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
5.0x
Net Assets: $15.8B
Peers & Industry
No auto-detected peers for Integrated Freight & Logistics. You can manually compare UPS against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.02%
Low — management has little skin in the game
Return on Equity (ROE)
5.5%
Weak — poor returns on equity
Return on Assets (ROA)
1.2%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$1.0B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+0.3% YoY
Debt is roughly stable
Leadership Team
Carol Tome
CEO & Director
Age 68
Pay: $3,969,488
0.459% of net income
Brian Dykes
Chief Financial Officer & Executive Vice President
Age 46
Pay: $1,669,306
0.193% of net income
Kathleen Gutmann
Executive VP and President of International, Healthcare & Supply Chain Solutions
Age 56
Pay: $1,903,309
0.220% of net income
Nando Cesarone
Executive VP & President of U.S. and UPS Airline
Age 53
Pay: $1,865,744
0.216% of net income
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
6.85%
51,115,897
Vanguard Capital Management LLC
6.45%
48,152,554
State Street Corporation
4.37%
32,598,590
FMR, LLC
4.36%
32,574,845
Charles Schwab Investment Management, Inc.
2.96%
22,112,857
Geode Capital Management, LLC
2.35%
17,511,765
Vanguard Portfolio Management LLC
1.80%
13,471,962
Victory Capital Management Inc.
1.48%
11,040,973
Risk Analysis
Beta (Market Risk)
1.04
Moderate volatility — moves slightly more than market
Short Interest
3.3% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
1.82x
Moderate leverage
Current Ratio
1.21x
Adequate liquidity
52-Week Price Range
Low: $82.00Current: $104.86High: $122.41
Currently at 57% of 52-week range
United Parcel Service, Inc. (UPS) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $22.01. Margin of safety: 0%. Gross profit margin: 15.8%. Operating margin: 6.0%. Net margin: 4.1%. Market cap: $89.1B. Sector: Industrials. Industry: Integrated Freight & Logistics. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.