United Parcel ServiceUPS +2.99%76 Interest Coverage is 4.76 as of Mar. 2026, which is 60% below its 10-year median of 11.78. 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 845 Transportation companies, United Parcel Service ranks better than 56.45% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. United Parcel Service's
Operating Income
for the
three
months ended in Mar. 2026 was $1,267 Mil. United Parcel Service's Interest Expense for the
three
months ended in Mar. 2026 was $-266 Mil.
United Parcel Service's interest coverage for the quarter that ended in Mar. 2026 was 4.76.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for United Parcel Service's Interest Coverage or its related term are showing as below:
UPS'
s Interest Coverage Range Over the Past 10 Years
Min: 7.04 Med: 11.78 Max: 20.18
Current: 7.04
UPS's Interest Coverage is ranked better than 56.45% of 845
companies
in the Transportation industry
Industry Median: 5.66
vs UPS: 7.04
United Parcel Service (NYSE:UPS) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
United Parcel Service Interest Coverage Related Terms
United Parcel Service Interest Coverage Historical Data
* Premium members only.
The historical data trend for United Parcel Service's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
UPS vs FDX, JBHT, FDXFw: Interest Coverage Comparison
For the Integrated Freight & Logistics subindustry, United Parcel Service's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, United Parcel Service's Interest Coverage distribution charts can be found below:
* The bar in red indicates where United Parcel Service's Interest Coverage falls into.
United Parcel Service Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (UPS) has a Interest Coverage of 4.76 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on United Parcel Service and its competitors. This is 60% below median its historical median of 11.78. Over the past decade, United Parcel Service's Interest Coverage has ranged from 7.04 to 20.18. According to the industry distribution chart, United Parcel Service ranks #368 out of 845 companies in the Transportation industry, placing it in the top 43.6%.
Is United Parcel Service's Interest Coverage too high?
United Parcel Service's current Interest Coverage of 4.76 is 60% below median its 10-year median of 11.78. Over the past 10 years, this metric has ranged from a low of 7.04 to a high of 20.18. The Transportation industry median Interest Coverage is 5.66. United Parcel Service's value of 4.76 is 15.9% below this industry median. Based on the distribution chart, United Parcel Service ranks #368 out of 845 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 Interest Coverage compare to FDX and JBHT?
According to the Transportation industry distribution chart, United Parcel Service ranks #368 out of 845 companies for Interest Coverage. This puts United Parcel Service in the upper half of its industry. The industry median Interest Coverage is 5.66. United Parcel Service's value of 4.76 is 15.9% below this benchmark. Historically, United Parcel Service's own Interest Coverage has ranged from 7.04 to 20.18 over the past decade. While the company's 10-year median is 11.78 vs. the industry median of 5.66, 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 Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.66, based on 845 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Parcel Service's current Interest Coverage of 4.76 is 15.9% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on United Parcel Service and its competitors. For the Transportation industry, the median Interest Coverage is 5.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Parcel Service's current Interest Coverage is 4.76, which is 60% below median its own 10-year median of 11.78. 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 Interest Coverage is 4.76, which is 60% below median its 10-year median of 11.78 and 15.9% below the Transportation industry median of 5.66. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For United Parcel Service (UPS), the current Interest Coverage is 4.76 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:
Interest Coverage: 4.76 (60% below median its 10-year median of 11.78)
GF Value™: $128.02 vs. price of $109.31 (14.6% below fair value)
Industry Position: 15.9% below the Transportation median (#368 of 845)
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
Get the complete analysis for UPS
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