UPS shares have been sliding, now just above their 52-week low—down 34% this year, lagging the broader industry and rivals like FedEx and GXO. Key issues: the end of the De Minimis exemption is causing customs backlogs, package discards, and customer backlash. The company's aggressive dividend policy is under the spotlight, with an 87% payout ratio and free cash flow failing to cover recent dividends. Shipping demand is weak, online sales have slowed, and average daily volume is down 3.8% year-over-year. Management declined to provide guidance for next year, and earnings estimates keep getting revised downward. While valuation looks low, deteriorating fundamentals and operational headaches suggest caution on UPS.