UNION PACIFIC CORP (UNP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:UNP - US9078181081 - Common Stock
193.78 EUR
+0.08 (+0.04%)
Overall UNP gets a fundamental rating of 6 out of 10. We evaluated UNP against 14 industry peers in the Ground Transportation industry. While UNP belongs to the best of the industry regarding profitability, 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.
- UNP had a positive operating cash flow in the past year.
- Each year in the past 5 years UNP has been profitable.
- Each year in the past 5 years UNP had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.27%, UNP belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 40.75%, UNP belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 12.12%, UNP belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for UNP is above the industry average of 9.01%.
- The 3 year average ROIC (12.01%) for UNP is below the current ROIC(12.12%), indicating increased profibility in the last year.
| 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
- The Profit Margin of UNP (28.73%) is better than 78.57% 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 has a Operating Margin of 40.62%. This is amongst the best in the industry. UNP outperforms 92.86% of its industry peers.
- In the last couple of years the Operating Margin of UNP has remained more or less at the same level.
- 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
- 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
- UNP has an Altman-Z score of 3.81. This indicates that UNP is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of UNP (3.81) is better than 92.86% of its industry peers.
- 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 better Debt to FCF ratio (5.29) than 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
WACC9.68%
2.3 Liquidity
- UNP has a Current 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.
- The Current ratio of UNP (0.75) is worse than 71.43% of its industry peers.
- A Quick Ratio of 0.60 indicates that UNP may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.60, UNP is doing worse than 85.71% 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.
- 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
- 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.
- UNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.82% yearly.
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.
- 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
- UNP is valuated rather expensively with a Price/Earnings ratio of 19.63.
- Compared to the rest of the industry, the Price/Earnings ratio of UNP is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, UNP is valued a bit cheaper.
- A Price/Forward Earnings ratio of 18.35 indicates a rather expensive valuation of UNP.
- UNP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UNP is cheaper than 64.29% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. UNP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 18.35 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UNP indicates a somewhat cheap valuation: UNP is cheaper than 64.29% of the companies listed in the same industry.
- UNP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.8 | ||
| EV/EBITDA | 13.54 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of UNP 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
- UNP has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
- UNP's Dividend Yield is a higher than the industry average which is at 1.59.
- 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
- On average, the dividend of UNP grows each year by 7.62%, which is quite nice.
Dividend Growth(5Y)7.62%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- UNP pays out 45.77% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of UNP is growing around the same rate as the earnings are growing. If this keeps up 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 6 / 10 to UNP.DE.
What is the valuation status of UNION PACIFIC CORP (UNP.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to UNION PACIFIC CORP (UNP.DE). This can be considered as Fairly Valued.
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 6 / 10 and the dividend payout ratio is 45.77%.