FCF Yield
Updated 461h ago
Sector Performance
61th percentileUPS
5.2%
Sector Median
4.2%
Sector Avg
7.8%
Deep Analysis
The current free cash flow (FCF) yield of 5.2% means that for every $100 of market value, the company generates $5.20 in free cash flow—the cash left after operating expenses and capital spending.
This yield sits above the sector median of 4.3%, placing UPS in the 61st percentile among its peers, indicating a slightly higher cash return relative to the industry. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 8.8%, dropping from 5.7% in the prior period. A yield above the median suggests the stock offers better-than-average cash generation, yet the recent quarterly decline points to possible weakening in cash flow or rising valuation. This combination of an above-median but contracting FCF yield creates a mixed risk profile: the level is supportive, but the trend warrants caution. The metric supports the overall NEUTRAL verdict because the yield is not strong enough to justify a bullish stance, nor is it weak enough to turn bearish.
Frequently Asked Questions
What does the FCF Yield tell investors about UPS?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are UPS's closest peers by FCF Yield?
The closest peers by FCF Yield include: FLNC (-6.3%), NCLH (-13.0%), SG (-13.6%), XEL (-13.6%), GS (-14.0%).
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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5.2%
Sector Median
4.2%
Sector Avg
7.8%
How UPS's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.