UPS FCF Yield Analysis
Updated 153h ago·SEC filings & market data
Key Takeaway
Free cash flow yield (FCF Yield) shows the cash a company generates after capital spending as a percentage of its market value; at 5.5%, UPS returns that much cash relative to its stock price.
Sector Performance
63th percentileUPS
5.3%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
5.5%(Aug 2026)
Deep Analysis
Free cash flow yield (FCF Yield) shows the cash a company generates after capital spending as a percentage of its market value; at 5.5%, UPS returns that much cash relative to its stock price.
This sits above the sector median of 4.2%, placing UPS in the 65th percentile among sector peers. The metric is increasing, with a year-over-year gain of +12.2% and a quarter-over-quarter gain of +3.8%, following a trend that has risen from 4.9% to 5.5% over the most recent reported periods. The combination of an above-median level and upward trend suggests UPS’s cash generation is improving, which lowers cash-flow risk and may offer a growing cash return to investors. However, this single positive metric does not outweigh other factors in the overall assessment. It supports the NEUTRAL verdict because the FCF Yield is favorable but not extreme enough to shift the stock to a bullish stance.
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: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
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.
Master UPS's Valuation
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5.3%
Sector Median
4.2%
Sector Avg
9.2%
How UPS's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.