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 Margin4.1%
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 Margin2.6%
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 Debt47.5 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-$21.2B
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$2.7B
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-Book4.71x
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$166M
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 Income114.7%
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$2.3B
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 $94.75.
The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.
At $94.75, the stock trades at a 429% premium to its Graham Number of $17.92. 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
Q2 2026
Q4 2025
Gross Profit %
13.0%▼
20.8%
Operating Margin %
4.1%▼
10.5%
Net Income %
2.6%▼
7.3%
Diluted EPS
0.71▼
2.10
Balance Sheet Highlights
Metric
Q2 2026
Q4 2025
Q4 2024
Total Assets
$71.3B
$73.1B
N/A
Total Debt
$28.7B▲
$28.6B•
N/A
Working Capital
$2.7B▼
$3.4B•
N/A
Years to Pay Debt
47.47
15.96
N/A
Cash Flow Highlights
Metric
Q2 2026
Q4 2025
Q4 2024
Free Cash Flow
$166M▼
$2.6B•
N/A
Owner Earnings
$2.3B
$3.5B
N/A
CapEx % of Net Income
114.7%
40.0%
N/A
Income Statement
2026
2025
Tax Effect Of Unusual Items
21,218
15,431
Tax Rate For Calcs
0
0
Normalized EBITDA
1,910,000
3,547,000
Total Unusual Items
103,000
63,000
Total Unusual Items Excluding Goodwill
103,000
63,000
Net Income From Continuing Operation Net Minority Interest
604,000
1,791,000
Reconciled Depreciation
980,000
972,000
Reconciled Cost Of Revenue
19,864,000
19,395,000
EBITDA
2,013,000
3,610,000
EBIT
1,033,000
2,638,000
Net Interest Income
-272,000
-266,000
Interest Expense
272,000
266,000
Normalized Income
522,218
1,743,431
Net Income From Continuing And Discontinued Operation
604,000
1,791,000
Total Expenses
21,904,000
21,904,000
Rent Expense Supplemental
557,000
570,000
Total Operating Income As Reported
930,000
2,575,000
Diluted Average Shares
851,000
853,000
Basic Average Shares
850,000
849,000
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
604,000
1,791,000
Net Income Common Stockholders
604,000
1,791,000
Net Income
604,000
1,791,000
Net Income Including Noncontrolling Interests
604,000
1,791,000
Net Income Continuous Operations
604,000
1,791,000
Tax Provision
157,000
581,000
Pretax Income
761,000
2,372,000
Other Income Expense
103,000
63,000
Gain On Sale Of Security
103,000
63,000
Net Non Operating Interest Income Expense
-272,000
-266,000
Interest Expense Non Operating
272,000
266,000
Operating Income
930,000
2,575,000
Operating Expense
2,040,000
2,509,000
Other Operating Expenses
2,040,000
2,509,000
Gross Profit
2,970,000
5,084,000
Cost Of Revenue
19,864,000
19,395,000
Total Revenue
22,834,000
24,479,000
Operating Revenue
22,834,000
24,479,000
Balance Sheet
2026
2025
2024
Treasury Shares Number
100
Ordinary Shares Number
850,900
848,900
Share Issued
850,900
849,000
Net Debt
19,831,000
18,240,000
Total Debt
28,673,000
28,590,000
Tangible Book Value
5,343,000
6,369,000
Invested Capital
39,551,000
40,354,000
Working Capital
2,664,000
3,425,000
Net Tangible Assets
5,343,000
6,369,000
Capital Lease Obligations
4,189,000
4,463,000
Common Stock Equity
15,067,000
16,227,000
Total Capitalization
38,917,000
39,746,000
Total Equity Gross Minority Interest
15,099,000
16,255,000
Minority Interest
32,000
28,000
Stockholders Equity
15,067,000
16,227,000
Other Equity Interest
3,000
5,000
Gains Losses Not Affecting Retained Earnings
-4,254,000
-4,208,000
Other Equity Adjustments
-4,254,000
-4,208,000
Treasury Stock
3,000
5,000
Retained Earnings
18,830,000
20,151,000
Additional Paid In Capital
482,000
275,000
Capital Stock
9,000
9,000
Common Stock
9,000
9,000
Total Liabilities Net Minority Interest
56,168,000
56,835,000
Total Non Current Liabilities Net Minority Interest
41,287,000
41,215,000
Other Non Current Liabilities
3,754,000
3,739,000
Employee Benefits
6,341,000
6,567,000
Non Current Pension And Other Postretirement Benefit Plans
6,341,000
6,567,000
Non Current Deferred Liabilities
3,882,000
3,690,000
Non Current Deferred Taxes Liabilities
3,882,000
3,690,000
Long Term Debt And Capital Lease Obligation
27,310,000
27,219,000
Long Term Capital Lease Obligation
3,460,000
3,700,000
Long Term Debt
23,850,000
23,519,000
Current Liabilities
14,881,000
15,620,000
Other Current Liabilities
1,963,000
1,375,000
Current Debt And Capital Lease Obligation
1,363,000
1,371,000
Current Capital Lease Obligation
729,000
763,000
Current Debt
634,000
608,000
Other Current Borrowings
634,000
608,000
Pensionand Other Post Retirement Benefit Plans Current
1,073,000
1,389,000
Current Provisions
1,123,000
1,137,000
Payables And Accrued Expenses
9,359,000
10,348,000
Current Accrued Expenses
3,383,000
3,715,000
Payables
5,976,000
6,633,000
Total Tax Payable
Income Tax Payable
Accounts Payable
5,976,000
6,633,000
Total Assets
71,267,000
73,090,000
Total Non Current Assets
53,722,000
54,045,000
Other Non Current Assets
1,933,000
2,053,000
Non Current Deferred Assets
155,000
140,000
Non Current Deferred Taxes Assets
155,000
140,000
Goodwill And Other Intangible Assets
9,724,000
9,858,000
Other Intangible Assets
3,954,000
4,021,000
Goodwill
5,770,000
5,837,000
Net PPE
41,910,000
41,994,000
Accumulated Depreciation
-38,570,000
-37,431,000
Gross PPE
80,480,000
79,425,000
Construction In Progress
2,320,000
2,136,000
Other Properties
6,710,000
6,898,000
Machinery Furniture Equipment
20,403,000
19,817,000
Buildings And Improvements
12,680,000
12,592,000
Land And Improvements
2,027,000
2,046,000
Current Assets
17,545,000
19,045,000
Other Current Assets
2,182,000
1,210,000
Inventory
739,000
826,000
Receivables
10,710,000
11,209,000
Accounts Receivable
10,710,000
11,209,000
Allowance For Doubtful Accounts Receivable
-213,000
-180,000
Gross Accounts Receivable
10,923,000
11,389,000
Cash Cash Equivalents And Short Term Investments
4,653,000
5,887,000
Other Short Term Investments
206,000
Cash And Cash Equivalents
4,653,000
5,887,000
Cash Flow
2026
2025
2024
Free Cash Flow
166,000
2,586,000
Repayment Of Debt
-39,000
-924,000
Issuance Of Debt
0
0
Issuance Of Capital Stock
32,000
26,000
Capital Expenditure
-693,000
-716,000
End Cash Position
4,653,000
5,887,000
Beginning Cash Position
5,802,000
6,764,000
Effect Of Exchange Rate Changes
-13,000
16,000
Changes In Cash
-1,136,000
-893,000
Financing Cash Flow
-1,429,000
-2,194,000
Cash Flow From Continuing Financing Activities
-1,429,000
-2,194,000
Net Other Financing Charges
-66,000
57,000
Cash Dividends Paid
-1,356,000
-1,353,000
Common Stock Dividend Paid
-1,356,000
-1,353,000
Net Common Stock Issuance
32,000
26,000
Common Stock Issuance
32,000
26,000
Net Issuance Payments Of Debt
-39,000
-924,000
Net Long Term Debt Issuance
-39,000
-924,000
Long Term Debt Payments
-39,000
-924,000
Long Term Debt Issuance
0
0
Investing Cash Flow
-566,000
-2,001,000
Cash Flow From Continuing Investing Activities
-566,000
-2,001,000
Net Other Investing Changes
11,000
25,000
Net Investment Purchase And Sale
0
64,000
Sale Of Investment
0
64,000
Net Business Purchase And Sale
116,000
-1,374,000
Sale Of Business
116,000
115,000
Purchase Of Business
0
-1,489,000
Capital Expenditure Reported
-693,000
-716,000
Operating Cash Flow
859,000
3,302,000
Cash Flow From Continuing Operating Activities
859,000
3,302,000
Change In Working Capital
-733,000
-240,000
Change In Other Current Liabilities
-73,000
11,000
Change In Other Current Assets
-245,000
145,000
Change In Payables And Accrued Expense
340,000
840,000
Change In Accrued Expense
147,000
229,000
Change In Payable
193,000
611,000
Change In Account Payable
193,000
611,000
Change In Receivables
-755,000
-1,236,000
Changes In Account Receivables
-755,000
-1,236,000
Other Non Cash Items
74,000
338,000
Stock Based Compensation
34,000
32,000
Provisionand Write Offof Assets
89,000
160,000
Deferred Tax
99,000
26,000
Deferred Income Tax
99,000
26,000
Depreciation Amortization Depletion
980,000
972,000
Depreciation And Amortization
980,000
972,000
Operating Gains Losses
-288,000
223,000
Pension And Employee Benefit Expense
-288,000
223,000
Net Income From Continuing Operations
604,000
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: $21.2B▲ $22.8B+7.6%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 17.8%▼ 13.0%-4.8pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 4.4%▼ 4.1%-0.3pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 6.0%▼ 2.6%-3.4pp
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.
$22.8B/qtr (≈$91.3B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.18x 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.
$166M
vs Positive
Operating Cash Flow
$859M
Latest quarter · Buffett's cash reality check
ROIC
1.3%
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
4.7x
Net Assets: $15.1B
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)
4.0%
Weak — poor returns on equity
Return on Assets (ROA)
0.8%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$1.0B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+0.0% YoY
Debt is roughly stable
Leadership Team
Carol Tome
CEO & Director
Age 68
Pay: $3,969,488
0.657% of net income
Brian Dykes
Chief Financial Officer & Executive Vice President
Age 46
Pay: $1,669,306
0.276% of net income
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
7.33%
54,929,329
Vanguard Capital Management LLC
6.50%
48,739,036
State Street Corporation
4.52%
33,864,263
FMR, LLC
4.38%
32,848,561
Charles Schwab Investment Management, Inc.
3.30%
24,698,297
Geode Capital Management, LLC
2.38%
17,861,160
Victory Capital Management Inc.
1.90%
14,251,075
Vanguard Portfolio Management LLC
1.85%
13,889,226
Risk Analysis
Beta (Market Risk)
1.04
Moderate volatility — moves slightly more than market
Short Interest
3.4% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
1.90x
Moderate leverage
Current Ratio
1.18x
Adequate liquidity
52-Week Price Range
Low: $82.00Current: $94.75High: $122.41
Currently at 32% 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: $17.92. Margin of safety: 0%. Gross profit margin: 13.0%. Operating margin: 4.1%. Net margin: 2.6%. Market cap: $80.6B. 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.