United Parcel Service Inc. (NYSE:UPS)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio demonstrates a significant decline from a very high level in early 2020 to more moderate levels in subsequent years. Initially, no data is available until March 31, 2020, when the ratio reaches 104.33, which likely indicates an outlier or an unusual earnings figure at that time. Following this peak, the ratio declines steadily through 2021 and 2022, stabilizing between approximately 12 and 15. In 2023 and early 2024, the ratio increases slightly, fluctuating between 13 and 21, before descending again to 13.59 by March 31, 2025. This overall decline and stabilization suggest normalization after an initial outlier, with periodic fluctuations reflecting changing earnings relative to price.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio shows a fluctuating but generally downward trend over the period observed. Starting with no data before March 31, 2020, the ratio is at 18.23, rises slightly to a peak of 19.92 in June 2020, then decreases steadily through 2021 toward a low near 10.32 by December 2021. Subsequently, the ratio fluctuates moderately between approximately 11 and 15 through 2023 and early 2024, before declining again toward 9.34 by the end of 2024. This indicates improving operating profitability relative to price valuation over time, with some intermediate volatility.

Price to Sales (P/S) Ratio

The Price to Sales ratio exhibits a general downward trend throughout the available data. Starting at 1.66 in March 2020, it increases to 2.09 by June 2020, then decreases steadily over the following periods. By the end of 2021, the ratio declines to near 1.41 and continues fluctuating in a downward trajectory with minor short-term variations, reaching 0.88 by March 31, 2025. This trend suggests decreasing valuation multiples relative to sales, potentially reflecting either rising sales or a contraction in price multiples.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio shows high volatility, especially in the early part of the period. It starts at 24.78 in March 2020, rises to 28.64 in June 2020, then exhibits an extreme spike to 213.26 by December 31, 2020, which is likely due to an accounting or data anomaly. After this spike, the ratio declines sharply to 26.13 in March 2021, then progressively decreases through the subsequent years, settling into a range between 5.08 and 15.53. By March 2025, it further declines to 5.08, indicating a substantial reduction in price relative to book value. This trend may point to improved book value or a diminished market valuation relative to equity over time.

The analyzed financial data reveals notable trends in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over multiple quarterly periods.

Share Price

The share price demonstrated considerable volatility throughout the observed periods. Beginning at approximately $94.83, it climbed sharply to a peak near $214.52 by March 31, 2021. Following this peak, the share price experienced gradual declines interspersed with minor recoveries, dropping to $93.96 by March 31, 2025. Notably, after the high in early 2021, there was a downward trend with some oscillations, indicating possible market uncertainties or changing investor sentiments over time.

Earnings Per Share (EPS)

EPS showed a significant increasing trend up to the end of 2021, rising from 1.55 to a peak of 14.81 by March 31, 2022. Post this peak, EPS declined steadily over the subsequent quarters, reaching 6.92 by March 31, 2025. This pattern reflects initial strong earnings growth followed by a period of deceleration or contraction in profitability.

Price-to-Earnings (P/E) Ratio

The P/E ratio initially was very high at 104.33 at March 31, 2021, implying a high valuation relative to earnings, likely due to the low EPS early in the period. It then decreased markedly to around 14.11 by March 31, 2022, coinciding with the peak in EPS and indicating a more balanced valuation. Subsequently, the P/E ratio fluctuated between roughly 13.59 and 21.14, trending slightly higher in the later periods despite falling EPS and declining share prices. This suggests some degree of valuation reassessment by the market or expectations of future earnings stabilization or growth.

Overall, the data illustrates a phase of growth in earnings and share price till early 2022, followed by a notable contraction in earnings and a decline in share price through early 2025. The P/E ratio reflects these dynamics, adjusting from extreme valuation levels toward more moderate multiples, but with signs of cautious optimism in valuation during the recent quarters despite lower earnings and prices.

Share Price Trends

The share price exhibited significant volatility throughout the observed periods. Beginning at $94.83 in March 2020, it peaked during the first quarter of 2021 at $214.52, reflecting robust market valuation during that time. Subsequently, the share price experienced a downward trend with occasional short-term recoveries, culminating at $93.96 by March 2025. Notable declines occurred particularly after December 2021, with intermittent rebounds in mid-2022 and mid-2023, but the overall trajectory was downward in the latter years.

Operating Profit Per Share (OPPS)

Operating profit per share data commenced in March 2021, starting at $8.86 and showing a consistent increase until December 2021, reaching $12.61. Through 2022, OPPS continued to rise, peaking at $15.94 in December 2022. However, from 2023 onwards, there was a gradual decline in OPPS, falling to $10.06 by March 2025. This indicates growing operational efficiency in the early part of the period followed by a reduction in profitability on a per-share basis in recent quarters.

Price to Operating Profit Ratio (P/OP)

Price to operating profit ratio started at 18.23 in March 2021, increasing to a peak of 19.92 in June 2021, suggesting market expectations were relatively high compared to operating profit at that time. Following this peak, the ratio steadily decreased to a low of 9.34 by March 2025. This decline indicates that either the share price contracted more rapidly relative to operating profit or that operating profit per share gains outpaced share price increases, reflecting a revaluation of the stock or improved profitability relative to price.

Overall Observations

There is an inverse relationship observed between share price and operating profit per share in the later years; despite OPPS showing improved figures in early periods, the share price did not sustain proportional gains and declined significantly toward the end. The falling P/OP ratio in the later quarters indicates a market adjustment, with shares becoming less expensive relative to operating profits. The initial rise in both share price and OPPS suggests strong financial performance and positive market sentiment during 2020 and 2021, followed by a period of correction and stabilization with conservative profitability impacts by 2024 and 2025.

Share Price Trends

The share price exhibited significant volatility from March 2020 to March 2025. It initially surged from $94.83 in March 2020 to a peak of $214.52 by March 2021, indicating a strong upward momentum during this period. Following this peak, the price showed a general declining trend with intermittent fluctuations, falling to $93.96 by March 2025. This suggests a notable reduction in market valuation over the long term after the initial increase.

Sales per Share Evolution

Sales per share data is available from March 2021 onward and showed a steady but gradual increase initially, rising from $97.61 to a maximum of $116.86 in December 2022. After this peak, there was a slight but persistent decline, tapering down to $106.62 by March 2025. This suggests that while sales per share improved over the short term, growth stabilized and mildly reversed in the subsequent quarters.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio, starting from March 2021, exhibited variability with an initial upward movement from 1.66 to 2.09 by June 2021, followed by fluctuations and a declining tendency overall. The ratio decreased notably from 1.94 in December 2021 to 0.88 in March 2025, reflecting a diminishing relationship between the stock price and sales per share. This decline may indicate that the market price decreased relative to sales, suggesting potential market caution or reevaluation of future sales growth prospects.

Overall Insights

The data reveals an initial phase of strong market confidence, as seen in the rapid rise in share price and P/S ratio in 2020–2021. Despite incremental growth in sales per share during the early periods, the market price receded considerably thereafter. The falling P/S ratio corroborates the weakening market valuation despite relatively stable sales per share. The trend highlights potential challenges or shifts in investor perception that may warrant further examination.

The analysis of the quarterly financial data reveals distinct trends across the share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio over the examined periods.

Share Price

The share price exhibited significant volatility throughout the timeline. It initially rose sharply from $94.83 in March 2020 to a peak of $214.52 in March 2021, indicating strong positive market sentiment or company performance during this period. Thereafter, the share price experienced fluctuations but generally trended downwards from March 2021 onward. By March 2025, the price declined to $93.96, nearly returning to its 2020 starting level, suggesting a possible reduction in investor confidence or external market factors impacting valuation.

Book Value Per Share (BVPS)

The BVPS showed a steady upward trajectory with some fluctuations. From $3.83 in March 2020, the BVPS increased moderately to $6.47 by September 2020, followed by a notable drop to $0.76 in December 2020, which could be attributed to an accounting anomaly or a significant event affecting equity. Subsequently, BVPS recovered strongly to reach $23.04 by December 2022, indicating sustained growth in the company’s net asset base. After December 2022, the BVPS stabilized around $19.5 to $23.5, suggesting a plateauing in asset growth or equity accumulation through to March 2025, when it reached $18.49.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio showed remarkable variation, particularly around December 2020, where it spiked dramatically to 213.26, corresponding with the sharp decline in BVPS at that time. This anomaly indicates a temporary decoupling between market price and book value, likely reflecting market overvaluation or a one-time accounting effect. Excluding this outlier, the P/BV ratio trended downward consistently from above 24 in early 2020 to about 5.08 by March 2025, signaling that the share price decreased relative to book value over time. This trend suggests a shift in market valuation toward more conservative pricing relative to the company’s net assets.

Overall, the data reflects an initial phase of substantial growth and optimism until early 2021, followed by a period of correction and stabilization. The rising book value per share amid declining price levels suggests that, while the company’s asset base strengthened, market sentiment and valuation metrics became more cautious or bearish in the later years. The extreme P/BV ratio spike in late 2020 stands out as an outlier likely influenced by extraordinary circumstances rather than ongoing trends.