UNION PACIFIC CORP (UNP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:UNP - US9078181081 - Common Stock
196.78 EUR
-1.18 (-0.6%)
UNP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 14 industry peers in the Ground Transportation industry. UNP scores excellent on profitability, but there are some minor concerns on its financial health. UNP has a correct valuation and a medium 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.
- UNP had positive earnings in each of the past 5 years.
- UNP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 10.27%, UNP belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- The Return On Equity of UNP (40.75%) is better than 85.71% of its industry peers.
- The Return On Invested Capital of UNP (12.12%) is better than 85.71% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for UNP is above the industry average of 9.01%.
- 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 better Profit Margin (28.73%) than 78.57% of its industry peers.
- UNP's Profit Margin has been stable in the last couple of years.
- UNP's Operating Margin of 40.62% is amongst the best of the industry. UNP outperforms 92.86% 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 78.57% of its industry peers.
- In the last couple of years the Gross Margin of UNP has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UNP 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
- The debt/assets ratio for UNP has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.81 indicates that UNP is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.81, UNP belongs to the best of the industry, outperforming 92.86% 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.
- UNP has a Debt to FCF ratio of 5.29. This is in the better half of the industry: UNP outperforms 78.57% of its industry peers.
- A Debt/Equity ratio of 1.75 is on the high side and indicates that UNP has dependencies on debt financing.
- UNP has a Debt to Equity ratio of 1.75. This is in the lower half of the industry: UNP underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.29 | ||
| Altman-Z | 3.81 |
ROIC/WACC1.25
WACC9.7%
2.3 Liquidity
- A Current Ratio of 0.75 indicates that UNP may have some problems paying its short term obligations.
- The Current ratio of UNP (0.75) is worse than 71.43% 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.
- UNP has a worse Quick ratio (0.60) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- UNP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.08%, which is quite good.
- The Earnings Per Share has been growing slightly by 5.83% on average over the past years.
- The Revenue has been growing slightly by 1.06% in the past year.
- The Revenue has been growing slightly by 2.24% on average over the past years.
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
- Based on estimates for the next years, UNP will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.71% on average per year.
- 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 Year1.24%
Revenue Next 2Y2.29%
Revenue Next 3Y3.28%
Revenue Next 5Y6.82%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 19.64, the valuation of UNP can be described as rather expensive.
- UNP's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. UNP is valued slightly cheaper when compared to this.
- UNP is valuated rather expensively with a Price/Forward Earnings ratio of 18.34.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of UNP indicates a somewhat cheap valuation: UNP is cheaper than 64.29% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of UNP to the average of the S&P500 Index (25.98), we can say UNP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 18.34 |
4.2 Price Multiples
- 64.29% of the companies in the same industry are more expensive than UNP, based on the Enterprise Value to EBITDA ratio.
- UNP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.79 | ||
| EV/EBITDA | 13.53 |
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.
- UNP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.28
PEG (5Y)3.37
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.
- Compared to an average industry Dividend Yield of 1.59, UNP pays a bit more dividend than its industry peers.
- UNP's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| 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%.