United Parcel ServiceUPS +2.99%76 Gross Margin % is 15.84% as of Mar. 2026, which is 15% below its 10-year median of 18.71. 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 985 Transportation companies, United Parcel Service ranks worse than 57.06% on this metric.
UPS's Gross Margin % is ranked worse than 57.06% of 985
companies
in the Transportation industry
Industry Median: 20.42
vs UPS: 17.79
United Parcel Service had a gross margin of 15.84% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for United Parcel Service was -1.50% per year.
United Parcel Service (NYSE:UPS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
United Parcel Service had a gross margin of 15.84% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
United Parcel Service Gross Margin % Related Terms
United Parcel Service Gross Margin % Historical Data
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The historical data trend for United Parcel Service's Gross 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.
UPS vs FDX, JBHT, FDXFw: Gross Margin % Comparison
For the Integrated Freight & Logistics subindustry, United Parcel Service's Gross Margin %, along with its competitors' market caps and Gross 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 Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, United Parcel Service's Gross Margin % distribution charts can be found below:
* The bar in red indicates where United Parcel Service's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
United Parcel Service (UPS) has a Gross Margin % of 15.84% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on United Parcel Service and its competitors. This is 15% below median its historical median of 18.71. Over the past decade, United Parcel Service's Gross Margin % has ranged from 17.38 to 20.94. According to the industry distribution chart, United Parcel Service ranks #562 out of 985 companies in the Transportation industry, placing it in the top 57.1%.
Is United Parcel Service's Gross Margin % too high?
United Parcel Service's current Gross Margin % of 15.84% is 15% below median its 10-year median of 18.71. Over the past 10 years, this metric has ranged from a low of 17.38 to a high of 20.94. The Transportation industry median Gross Margin % is 20.42. United Parcel Service's value of 15.84% is 22.4% below this industry median. Based on the distribution chart, United Parcel Service ranks #562 out of 985 companies in the Transportation industry, which is below 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 Gross Margin % compare to FDX and JBHT?
According to the Transportation industry distribution chart, United Parcel Service ranks #562 out of 985 companies for Gross Margin %. This places United Parcel Service in the lower half of its industry. The industry median Gross Margin % is 20.42. United Parcel Service's value of 15.84% is 22.4% below this benchmark. Historically, United Parcel Service's own Gross Margin % has ranged from 17.38 to 20.94 over the past decade. While the company's 10-year median is 18.71 vs. the industry median of 20.42, United Parcel Service has consistently been below 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 Gross Margin % for a Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Parcel Service's current Gross Margin % of 15.84% is 22.4% below 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on United Parcel Service and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Parcel Service's current Gross Margin % is 15.84%, which is 15% below median its own 10-year median of 18.71. 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 Gross Margin % is 15.84%, which is 15% below median its 10-year median of 18.71 and 22.4% below the Transportation industry median of 20.42. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For United Parcel Service (UPS), the current Gross Margin % is 15.84% 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:
Gross Margin %: 15.84% (15% below median its 10-year median of 18.71)
GF Value™: $128.02 vs. price of $109.31 (14.6% below fair value)
Industry Position: 22.4% below the Transportation median (#562 of 985)
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.
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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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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