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United Parcel Service has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
United Parcel Service's Interest Coverage for the quarter that ended in Jun. 2026 was 3.42.
United Parcel Service's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.31.
As of today, United Parcel Service's Altman Z-Score is 2.94.
United Parcel Service (NYSE:UPS) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
United Parcel Service has the Financial Strength Rank of 5.
United Parcel Service Financial Strength Related Terms
UPS vs FDX, JBHT, FDXF: Financial Strength Comparison
For the Integrated Freight & Logistics subindustry, United Parcel Service's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Transportation Industry
For the Transportation industry and Industrials sector, United Parcel Service's Financial Strength distribution charts can be found below:
* The bar in red indicates where United Parcel Service's Financial Strength falls into.
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:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
United Parcel Service has a Z-score of 2.94, indicating it is in Grey Zones. This implies that United Parcel Service is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.94 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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 Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on United Parcel Service and its competitors. This is 17% below median its historical median of 6.00. Over the past decade, United Parcel Service's Financial Strength has ranged from 5.00 to 7.00.
Is United Parcel Service's Financial Strength too high?
United Parcel Service's current Financial Strength of 5 is 17% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 7.00. Overall, United Parcel Service has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does United Parcel Service's Financial Strength compare to FDX and JBHT?
United Parcel Service's Financial Strength of 5 can be compared against companies in the Transportation industry. Historically, United Parcel Service's own Financial Strength has ranged from 5.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Transportation company?
A good Financial Strength depends on the Transportation industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on United Parcel Service and its competitors. United Parcel Service's current Financial Strength is 5, which is 17% below median its own 10-year median of 6.00. 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 $120.24, compared to a current price of $104.50 — trading 13.1% below its estimated fair value. The current Financial Strength is 5, which is 17% below median its 10-year median of 6.00. United Parcel Service's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For United Parcel Service (UPS), the current Financial Strength is 5 as of Jun. 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 $104.50 is trading 13.1% below its estimated GF Value™ of $120.24.
GuruFocus considers United Parcel Service to be Modestly Undervalued.
Key valuation signals for UPS:
Financial Strength: 5 (17% below median its 10-year median of 6.00)
GF Value™: $120.24 vs. price of $104.50 (13.1% below fair value)
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.
77GF Score
Get the complete analysis for UPS
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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