UPS (United Parcel Service) Profitability Rank: 7 (As of Mar. 2026) — 13% Below Median

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Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

UPS United Parcel Service Inc UPS
76 GF Score
Price $113.15
GF Value $128.42
Valuation Modestly Undervalued
! 9 Warning Signs
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What is United Parcel Service Profitability Rank?

United Parcel Service UPS -3.88% 76 Profitability Rank is 7 as of Mar. 2026, which is 13% below its 10-year median of 8.00. GuruFocus rates UPS with a GF Score™ of 76/100 and a GF Value™ of $128.42 (Modestly Undervalued). The stock has 9 warning signs investors should review.

United Parcel Service has the Profitability Rank of 7.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

United Parcel Service's Operating Margin % for the quarter that ended in Mar. 2026 was 5.98%. As of today, United Parcel Service's Piotroski F-Score is 5.


United Parcel Service Profitability Rank Related Terms


UPS vs FDX, JBHT, FDXF: Profitability Rank Comparison

For the Integrated Freight & Logistics subindustry, United Parcel Service's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank vs Transportation Industry

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

* The bar in red indicates where United Parcel Service's Profitability Rank falls into.


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

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

United Parcel Service has the Profitability Rank of 7.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

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

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=1267 / 21202
=5.98 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

United Parcel Service has an F-score of 5 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

United Parcel Service Inc operating margin has been in a 5-year decline. The average rate of decline per year is -4%.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 7 mean?
United Parcel Service (UPS) has a Profitability Rank of 7 as of Mar. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on United Parcel Service and its competitors. This is 13% below median its historical median of 8.00. Over the past decade, United Parcel Service's Profitability Rank has ranged from 7.00 to 9.00.
Is United Parcel Service's Profitability Rank too high?
United Parcel Service's current Profitability Rank of 7 is 13% below median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 9.00. 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 Profitability Rank compare to FDX and JBHT?
United Parcel Service's Profitability Rank of 7 can be compared against companies in the Transportation industry. Historically, United Parcel Service's own Profitability Rank has ranged from 7.00 to 9.00 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 Profitability Rank for a Transportation company?
A good Profitability Rank depends on the Transportation industry context. However, Profitability Rank 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 Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on United Parcel Service and its competitors. United Parcel Service's current Profitability Rank is 7, which is 13% below median its own 10-year median of 8.00. 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 $128.42, compared to a current price of $113.15 — trading 11.9% below its estimated fair value. The current Profitability Rank is 7, which is 13% below median its 10-year median of 8.00. United Parcel Service's overall GF Score™ is 76/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For United Parcel Service (UPS), the current Profitability Rank is 7 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 $113.15 is trading 11.9% below its estimated GF Value™ of $128.42. GuruFocus considers United Parcel Service to be Modestly Undervalued.

Key valuation signals for UPS:

  • Profitability Rank: 7 (13% below median its 10-year median of 8.00)
  • GF Value™: $128.42 vs. price of $113.15 (11.9% below fair value)
  • GF Score™: 76/100 with 9 warning signs

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

Get the complete analysis for UPS

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

$113.15
Price
$128.42
GF Value