UNION PACIFIC CORP (UNP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:UNP - US9078181081 - Common Stock
196.78 EUR
-1.18 (-0.6%)
We assign a fundamental rating of 5 out of 10 to UNP. UNP was compared to 15 industry peers in the Ground Transportation industry. While UNP has a great profitability rating, there are some minor concerns on its financial health. UNP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year UNP was profitable.
- In the past year UNP had a positive cash flow from operations.
- Each year in the past 5 years UNP has been profitable.
- UNP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- UNP has a Return On Assets of 10.27%. This is amongst the best in the industry. UNP outperforms 86.67% of its industry peers.
- UNP has a Return On Equity of 40.75%. This is amongst the best in the industry. UNP outperforms 86.67% of its industry peers.
- UNP has a better Return On Invested Capital (12.12%) than 86.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for UNP is above the industry average of 8.37%.
- The last Return On Invested Capital (12.12%) for UNP is above the 3 year average (12.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.27% | ||
| ROE | 40.75% | ||
| ROIC | 12.12% |
ROA(3y)10.05%
ROA(5y)9.8%
ROE(3y)46.87%
ROE(5y)43.64%
ROIC(3y)12.01%
ROIC(5y)11.77%
1.3 Margins
- UNP has a Profit Margin of 28.73%. This is in the better half of the industry: UNP outperforms 80.00% of its industry peers.
- In the last couple of years the Profit Margin of UNP has remained more or less at the same level.
- UNP's Operating Margin of 40.62% is amongst the best of the industry. UNP outperforms 93.33% of its industry peers.
- UNP's Operating Margin has been stable in the last couple of years.
- UNP's Gross Margin of 79.83% is fine compared to the rest of the industry. UNP outperforms 80.00% of its industry peers.
- UNP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.62% | ||
| PM (TTM) | 28.73% | ||
| GM | 79.83% |
OM growth 3Y-2.21%
OM growth 5Y0.33%
PM growth 3Y-2.39%
PM growth 5Y0.4%
GM growth 3Y-0.81%
GM growth 5Y-0.13%
2. Health
2.1 Basic Checks
- UNP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for UNP has been reduced compared to 1 year ago.
- Compared to 5 years ago, UNP has less shares outstanding
- UNP has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.82 indicates that UNP is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.82, UNP belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
- UNP has a debt to FCF ratio of 5.29. This is a neutral value as UNP would need 5.29 years to pay back of all of its debts.
- The Debt to FCF ratio of UNP (5.29) is better than 80.00% of its industry peers.
- UNP has a Debt/Equity ratio of 1.75. This is a high value indicating a heavy dependency on external financing.
- UNP has a worse Debt to Equity ratio (1.75) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.29 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.24
WACC9.75%
2.3 Liquidity
- A Current Ratio of 0.75 indicates that UNP may have some problems paying its short term obligations.
- UNP has a worse Current ratio (0.75) than 73.33% of its industry peers.
- UNP has a Quick Ratio of 0.75. This is a bad value and indicates that UNP is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.60, UNP is doing worse than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.08% over the past year.
- The Earnings Per Share has been growing slightly by 5.83% on average over the past years.
- Looking at the last year, UNP shows a small growth in Revenue. The Revenue has grown by 1.06% in the last year.
- UNP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.24% yearly.
EPS 1Y (TTM)8.08%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%12%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%2.51%
3.2 Future
- UNP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.71% yearly.
- Based on estimates for the next years, UNP will show a small growth in Revenue. The Revenue will grow by 6.82% on average per year.
EPS Next Y5.98%
EPS Next 2Y6.34%
EPS Next 3Y7.42%
EPS Next 5Y8.71%
Revenue Next Year1.29%
Revenue Next 2Y2.4%
Revenue Next 3Y3.36%
Revenue Next 5Y6.82%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 19.58, the valuation of UNP can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of UNP is on the same level as its industry peers.
- UNP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- UNP is valuated rather expensively with a Price/Forward Earnings ratio of 18.28.
- UNP's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. UNP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 18.28 |
4.2 Price Multiples
- UNP's Enterprise Value to EBITDA is on the same level as the industry average.
- UNP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.72 | ||
| EV/EBITDA | 13.56 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UNP does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of UNP may justify a higher PE ratio.
PEG (NY)3.27
PEG (5Y)3.36
EPS Next 2Y6.34%
EPS Next 3Y7.42%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.39%, UNP has a reasonable but not impressive dividend return.
- UNP's Dividend Yield is comparable with the industry average which is at 1.81.
- UNP's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
- The dividend of UNP is nicely growing with an annual growth rate of 7.62%!
Dividend Growth(5Y)7.62%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 45.77% of the earnings are spent on dividend by UNP. This is a bit on the high side, but may be sustainable.
- UNP's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP45.77%
EPS Next 2Y6.34%
EPS Next 3Y7.42%
UNION PACIFIC CORP / UNP.DE FAQ
What is the ChartMill fundamental rating of UNION PACIFIC CORP (UNP.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to UNP.DE.
What is the valuation status of UNION PACIFIC CORP (UNP.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to UNION PACIFIC CORP (UNP.DE). This can be considered as Overvalued.
Can you provide the profitability details for UNION PACIFIC CORP?
UNION PACIFIC CORP (UNP.DE) has a profitability rating of 8 / 10.
How financially healthy is UNION PACIFIC CORP?
The financial health rating of UNION PACIFIC CORP (UNP.DE) is 4 / 10.
How sustainable is the dividend of UNION PACIFIC CORP (UNP.DE) stock?
The dividend rating of UNION PACIFIC CORP (UNP.DE) is 5 / 10 and the dividend payout ratio is 45.77%.