Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

$24.99

Price to Operating Profit (P/OP)
since 2005

Microsoft Excel

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Calculation

United Parcel Service Inc., P/OP, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of United Parcel Service Inc. Annual Report.

Share Price Trend
The share price exhibited notable fluctuations over the reviewed period. An initial decrease was observed from US$78.1 in 2006 to a low of US$41.18 in 2009. Subsequent years reflected a general upward trend, peaking at US$208.97 in 2021. However, this peak was followed by a decline to US$115.42 by 2025, indicating a period of volatility and correction after substantial growth.
Operating Profit Per Share (OPPS) Trend
Operating profit per share demonstrated variability with an initial rise from US$5.62 in 2006 to US$6.22 in 2007, followed by a sharp drop to US$0.56 in 2008. Thereafter, OPPS mostly recovered and grew steadily, reaching a maximum of US$15.25 in 2022. The last two years showed a slight downtrend, ending at US$9.91 in 2025.
Price to Operating Profit (P/OP) Ratio Trend
The P/OP ratio showed irregular behavior correlating with shifts in both share price and OPPS. Extreme volatility was evident, with spikes such as 125.7 in 2008 and 58.68 in 2013, coinciding with periods of depressed operating profit per share. Generally, the P/OP ratio remained between 10 and 20 in most years, illustrating moderate valuation multiples relative to operating profit. The ratio declined towards the end of the period, reaching 11.64 in 2025.
Insights and Patterns
The data suggests a cyclical pattern in profitability and market valuation. The significant dip in OPPS in 2008, a year notable for economic stress globally, resulted in highly elevated P/OP ratios. The recovery phase saw improving profitability and increasing share prices, indicating renewed investor confidence. The peak share price in 2021 likely reflects positive market sentiment or operational performance, though the subsequent decrease suggests revaluation or external market pressures. The alignment of P/OP ratio trends with underlying profit fluctuations underscores the sensitivity of price to earnings dynamics within the company's financial profile.

Comparison to Competitors

United Parcel Service Inc., P/OP, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).