United Parcel ServiceUPS -0.47%76 ROC (Joel Greenblatt) % is 13.22% as of Mar. 2026, which is 47% below its 10-year median of 25.02. GuruFocus rates UPS with a GF Score™ of 76/100 and a GF Value™ of $128.07 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 996 Transportation companies, United Parcel Service ranks better than 68.67% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. United Parcel Service's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 13.22%.
The historical rank and industry rank for United Parcel Service's ROC (Joel Greenblatt) % or its related term are showing as below:
UPS'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 7.41 Med: 25.02 Max: 47.74
Current: 18.72
During the past 13 years, United Parcel Service's highest ROC (Joel Greenblatt) % was 47.74%. The lowest was 7.41%. And the median was 25.02%.
UPS's ROC (Joel Greenblatt) % is ranked better than 68.67% of 996
companies
in the Transportation industry
Industry Median: 11.695
vs UPS: 18.72
United Parcel Service's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 5.00% per year.
United Parcel Service (NYSE:UPS) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
United Parcel Service ROC (Joel Greenblatt) % Related Terms
United Parcel Service ROC (Joel Greenblatt) % Historical Data
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The historical data trend for United Parcel Service's ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Chart
UPS vs FDX, JBHT, FDXF: ROC (Joel Greenblatt) % Comparison
For the Integrated Freight & Logistics subindustry, United Parcel Service's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Transportation Industry
For the Transportation industry and Industrials sector, United Parcel Service's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where United Parcel Service's ROC (Joel Greenblatt) % falls into.
United Parcel Service ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 13.22% mean?
United Parcel Service (UPS) has a ROC (Joel Greenblatt) % of 13.22% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on United Parcel Service and its competitors. This is 47% below median its historical median of 25.02. Over the past decade, United Parcel Service's ROC (Joel Greenblatt) % has ranged from 7.41 to 47.74. According to the industry distribution chart, United Parcel Service ranks #312 out of 996 companies in the Transportation industry, placing it in the top 31.3%.
Is United Parcel Service's ROC (Joel Greenblatt) % too high?
United Parcel Service's current ROC (Joel Greenblatt) % of 13.22% is 47% below median its 10-year median of 25.02. Over the past 10 years, this metric has ranged from a low of 7.41 to a high of 47.74. The Transportation industry median ROC (Joel Greenblatt) % is 11.70. United Parcel Service's value of 13.22% is 13% above this industry median. Based on the distribution chart, United Parcel Service ranks #312 out of 996 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 ROC (Joel Greenblatt) % compare to FDX and JBHT?
According to the Transportation industry distribution chart, United Parcel Service ranks #312 out of 996 companies for ROC (Joel Greenblatt) %. This puts United Parcel Service in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 11.70. United Parcel Service's value of 13.22% is 13% above this benchmark. Historically, United Parcel Service's own ROC (Joel Greenblatt) % has ranged from 7.41 to 47.74 over the past decade. While the company's 10-year median is 25.02 vs. the industry median of 11.70, 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 ROC (Joel Greenblatt) % for a Transportation company?
The median ROC (Joel Greenblatt) % among Transportation companies is 11.70, based on 996 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Parcel Service's current ROC (Joel Greenblatt) % of 13.22% is 13% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on United Parcel Service and its competitors. For the Transportation industry, the median ROC (Joel Greenblatt) % is 11.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Parcel Service's current ROC (Joel Greenblatt) % is 13.22%, which is 47% below median its own 10-year median of 25.02. 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 $128.07, compared to a current price of $107.50 — trading 16.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 13.22%, which is 47% below median its 10-year median of 25.02 and 13% above the Transportation industry median of 11.70. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For United Parcel Service (UPS), the current ROC (Joel Greenblatt) % is 13.22% 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 $107.50 is trading 16.1% below its estimated GF Value™ of $128.07.
GuruFocus considers United Parcel Service to be Modestly Undervalued.
Key valuation signals for UPS:
ROC (Joel Greenblatt) %: 13.22% (47% below median its 10-year median of 25.02)
GF Value™: $128.07 vs. price of $107.50 (16.1% below fair value)
Industry Position: 13% above the Transportation median (#312 of 996)
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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