UPS (United Parcel Service) FCF Margin %: 5.63% (As of Mar. 2026) — Near Median


UPS United Parcel Service Inc UPS
76 GF Score
Price $109.31
GF Value $128.02
Valuation Modestly Undervalued
! 7 Warning Signs
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What is United Parcel Service FCF Margin %?

United Parcel Service UPS +2.99% 76 FCF Margin % is 5.63% as of Mar. 2026, which is 3% below its 10-year median of 5.83. GuruFocus rates UPS with a GF Score™ of 76/100 and a GF Value™ of $128.02 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,006 Transportation companies, United Parcel Service ranks better than 53.48% on this metric.

FCF Margin % is calculated as Free Cash Flow divided by its Revenue. United Parcel Service's Free Cash Flow for the three months ended in Mar. 2026 was $1,193 Mil. United Parcel Service's Revenue for the three months ended in Mar. 2026 was $21,202 Mil. Therefore, United Parcel Service's FCF Margin % for the quarter that ended in Mar. 2026 was 5.63%.

As of today, United Parcel Service's current FCF Yield % is 4.86%.

The historical rank and industry rank for United Parcel Service's FCF Margin % or its related term are showing as below:

UPS' s FCF Margin % Range Over the Past 10 Years
Min: -5.63   Med: 5.83   Max: 11.11
Current: 5.11


During the past 13 years, the highest FCF Margin % of United Parcel Service was 11.11%. The lowest was -5.63%. And the median was 5.83%.

UPS's FCF Margin % is ranked better than
53.48% of 1006 companies
in the Transportation industry
Industry Median: 4.38 vs UPS: 5.11


United Parcel Service FCF Margin % Related Terms


United Parcel Service FCF Margin % Historical Data

* Premium members only.

The historical data trend for United Parcel Service's FCF Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

United Parcel Service FCF Margin % Chart

United Parcel Service Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
FCF Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.11 9.30 5.58 6.82 5.37

United Parcel Service Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
FCF Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.69 -3.65 7.06 10.56 5.63

UPS vs FDX, JBHT, FDXFw: FCF Margin % Comparison

For the Integrated Freight & Logistics subindustry, United Parcel Service's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


United Parcel Service FCF Margin % vs Transportation Industry

For the Transportation industry and Industrials sector, United Parcel Service's FCF Margin % distribution charts can be found below:

* The bar in red indicates where United Parcel Service's FCF Margin % falls into.


UPS
76GF Score
United Parcel Service Inc UPS
FCF Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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United Parcel Service FCF Margin % Calculation

FCF margin is the ratio of Free Cash Flow divided by net sales or Revenue, usually presented in percent.

United Parcel Service's FCF Margin for the fiscal year that ended in Dec. 2025 is calculated as

FCF Margin=Free Cash Flow (A: Dec. 2025 )/Revenue (A: Dec. 2025 )
=4765/88661
=5.37 %

United Parcel Service's FCF Margin for the quarter that ended in Mar. 2026 is calculated as

FCF Margin=Free Cash Flow (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=1193/21202
=5.63 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about FCF Margin % →
What does a FCF Margin % of 5.63% mean?
United Parcel Service (UPS) has a FCF Margin % of 5.63% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on United Parcel Service and its competitors. This is near median its historical median of 5.83. According to the industry distribution chart, United Parcel Service ranks #468 out of 1006 companies in the Transportation industry, placing it in the top 46.5%.
Is United Parcel Service's FCF Margin % too high?
United Parcel Service's current FCF Margin % of 5.63% is near median its 10-year median of 5.83. The Transportation industry median FCF Margin % is 4.38. United Parcel Service's value of 5.63% is 28.5% above this industry median. Based on the distribution chart, United Parcel Service ranks #468 out of 1006 companies in the Transportation industry, which is above the industry midpoint. Overall, United Parcel Service has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does United Parcel Service's FCF Margin % compare to FDX and JBHT?
According to the Transportation industry distribution chart, United Parcel Service ranks #468 out of 1006 companies for FCF Margin %. This puts United Parcel Service in the upper half of its industry. The industry median FCF Margin % is 4.38. United Parcel Service's value of 5.63% is 28.5% above this benchmark. While the company's 10-year median is 5.83 vs. the industry median of 4.38, United Parcel Service has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Transportation company?
The median FCF Margin % among Transportation companies is 4.38, based on 1,006 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Parcel Service's current FCF Margin % of 5.63% is 28.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on United Parcel Service and its competitors. For the Transportation industry, the median FCF Margin % is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Parcel Service's current FCF Margin % is 5.63%, which is near median its own 10-year median of 5.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Parcel Service stock overvalued right now?
Based on GuruFocus' analysis, United Parcel Service (UPS) is currently considered Modestly Undervalued. The stock's GF Value™ is $128.02, compared to a current price of $109.31 — trading 14.6% below its estimated fair value. The current FCF Margin % is 5.63%, which is near median its 10-year median of 5.83 and 28.5% above the Transportation industry median of 4.38. United Parcel Service's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For United Parcel Service (UPS), the current FCF Margin % is 5.63% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is United Parcel Service (UPS) Overvalued in 2026?

Based on GuruFocus' analysis, United Parcel Service stock appears to be undervalued. The current stock price of $109.31 is trading 14.6% below its estimated GF Value™ of $128.02. GuruFocus considers United Parcel Service to be Modestly Undervalued.

Key valuation signals for UPS:

  • FCF Margin %: 5.63% (near median its 10-year median of 5.83)
  • GF Value™: $128.02 vs. price of $109.31 (14.6% below fair value)
  • GF Score™: 76/100 with 7 warning signs
  • Industry Position: 28.5% above the Transportation median (#468 of 1006)

No single metric tells the full story. See the UPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


United Parcel Service Business Description

Address 55 Glenlake Parkway, N.E. Atlanta, Atlanta, GA, USA, 30328
As the world's largest parcel delivery company, UPS manages a massive fleet of more than 500 planes and 100,000 vehicles, along with many hundreds of sorting facilities, to deliver an average of about 22 million packages per day to residences and businesses across the globe. UPS' domestic US package operations generate around 65% of total revenue, while international package makes up 20%. Air and ocean freight forwarding and contract logistics make up the remainder.
76GF Score

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FCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$109.31
Price
$128.02
GF Value