UPS (United Parcel Service) ROCE %: 9.70% (As of Mar. 2026)


UPS United Parcel Service Inc UPS
76 GF Score
Price $109.31
GF Value $128.02
Valuation Modestly Undervalued
! 7 Warning Signs
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What is United Parcel Service ROCE %?

United Parcel Service UPS +2.99% 76 ROCE % is 9.70% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. United Parcel Service's annualized ROCE % for the quarter that ended in Mar. 2026 was 9.70%.

United Parcel Service  (NYSE:UPS) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

United Parcel Service ROCE % Related Terms

United Parcel Service ROCE % Historical Data

* Premium members only.

The historical data trend for United Parcel Service's ROCE % 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 ROCE % Chart

United Parcel Service Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.56 29.63 17.63 15.56 14.73

United Parcel Service Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.12 13.88 13.38 18.46 9.70
UPS
76GF Score
United Parcel Service Inc UPS
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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United Parcel Service ROCE % Calculation

United Parcel Service's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=8181/( ( (70070 - 16441) + (73090 - 15620) )/ 2 )
=8181/( (53629+57470)/ 2 )
=8181/55549.5
=14.73 %

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

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=5560/( ( (73090 - 15620) + (71809 - 14674) )/ 2 )
=5560/( ( 57470 + 57135 )/ 2 )
=5560/57302.5
=9.70 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 9.70% mean?
United Parcel Service (UPS) has a ROCE % of 9.70% as of Mar. 2026.
Is United Parcel Service's ROCE % too high?
United Parcel Service's current ROCE % is 9.70%. The Transportation industry median ROCE % is 7.73. United Parcel Service's value of 9.70% is 25.5% above this industry median. 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 ROCE % compare to FDX and JBHT?
United Parcel Service's ROCE % of 9.70% can be compared against companies in the Transportation industry. The industry median ROCE % is 7.73. United Parcel Service's value of 9.70% is 25.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Transportation company?
The median ROCE % among Transportation companies is 7.73, based on 997 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Parcel Service's current ROCE % of 9.70% is 25.5% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Transportation industry, the median ROCE % is 7.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Parcel Service's current ROCE % is 9.70%. 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 ROCE % is 9.70% and 25.5% above the Transportation industry median of 7.73. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For United Parcel Service (UPS), the current ROCE % is 9.70% 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:

  • ROCE %: 9.70%
  • GF Value™: $128.02 vs. price of $109.31 (14.6% below fair value)
  • GF Score™: 76/100 with 7 warning signs
  • Industry Position: 25.5% above the Transportation median

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

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

$109.31
Price
$128.02
GF Value