UNION PACIFIC CORP (UNP.DE) Stock Fundamental Analysis
FRA:UNP - Deutsche Boerse Ag - US9078181081 - Common Stock - Currency: EUR
UNP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 11 industry peers in the Ground Transportation industry. UNP has an excellent profitability rating, but there are some minor concerns on its financial health. UNP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year UNP was profitable.
UNP had a positive operating cash flow in the past year.
In the past 5 years UNP has always been profitable.
In the past 5 years UNP always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.83%, UNP belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
UNP has a better Return On Equity (41.97%) than 83.33% of its industry peers.
UNP has a Return On Invested Capital of 12.03%. This is amongst the best in the industry. UNP outperforms 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNP is significantly above the industry average of 6.88%.
The last Return On Invested Capital (12.03%) for UNP is above the 3 year average (12.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.83% | ||
| ROE | 41.97% | ||
| ROIC | 12.03% |
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 27.77%. This is amongst the best in the industry. UNP outperforms 91.67% of its industry peers.
UNP's Profit Margin has been stable in the last couple of years.
The Operating Margin of UNP (40.06%) is better than 100.00% of its industry peers.
UNP's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 79.56%, UNP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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 | 40.06% | ||
| PM (TTM) | 27.77% | ||
| GM | 79.56% |
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.
UNP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for UNP has been reduced compared to 5 years ago.
UNP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.69 indicates that UNP is not in any danger for bankruptcy at the moment.
UNP has a better Altman-Z score (3.69) than 83.33% of its industry peers.
UNP has a debt to FCF ratio of 5.59. This is a neutral value as UNP would need 5.59 years to pay back of all of its debts.
UNP's Debt to FCF ratio of 5.59 is in line compared to the rest of the industry. UNP outperforms 58.33% of its industry peers.
A Debt/Equity ratio of 1.91 is on the high side and indicates that UNP has dependencies on debt financing.
With a Debt to Equity ratio value of 1.91, UNP is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.69 |
ROIC/WACC1.35
WACC8.91%
2.3 Liquidity
UNP has a Current Ratio of 0.73. 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's Current ratio of 0.73 is on the low side compared to the rest of the industry. UNP is outperformed by 75.00% of its industry peers.
A Quick Ratio of 0.61 indicates that UNP may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, UNP is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
UNP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.70%.
Measured over the past 5 years, UNP shows a small growth in Earnings Per Share. The EPS has been growing by 5.83% on average per year.
Looking at the last year, UNP shows a small growth in Revenue. The Revenue has grown by 0.63% 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)6.7%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%0.37%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%-0.07%
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 9.47% yearly.
The Revenue is expected to grow by 3.97% on average over the next years.
EPS Next Y4.3%
EPS Next 2Y7.59%
EPS Next 3Y8.26%
EPS Next 5Y9.47%
Revenue Next Year1.06%
Revenue Next 2Y2.74%
Revenue Next 3Y3.26%
Revenue Next 5Y3.97%
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
The Price/Earnings ratio is 20.15, which indicates a rather expensive current valuation of UNP.
UNP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, UNP is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.43, the valuation of UNP can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as UNP.
When comparing the Price/Forward Earnings ratio of UNP to the average of the S&P500 Index (21.76), we can say UNP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.15 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as UNP.
66.67% of the companies in the same industry are more expensive than UNP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.87 | ||
| EV/EBITDA | 13.67 |
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)4.68
PEG (5Y)3.45
EPS Next 2Y7.59%
EPS Next 3Y8.26%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.34%.
UNP's Dividend Yield is comparable with the industry average which is at 3.18.
Compared to an average S&P500 Dividend Yield of 2.37, UNP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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
47.86% 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 more than its dividend. This makes the dividend growth sustainable.
DP47.86%
EPS Next 2Y7.59%
EPS Next 3Y8.26%
FRA:UNP (6/19/2025, 7:00:00 PM)
192.04
-0.44 (-0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners83.09%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap114.74B
Analysts77.06
Price Target216.64 (12.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend4.52
Dividend Growth(5Y)7.62%
DP47.86%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.25%
Min EPS beat(2)-2.76%
Max EPS beat(2)5.25%
EPS beat(4)2
Avg EPS beat(4)0.14%
Min EPS beat(4)-2.76%
Max EPS beat(4)5.25%
EPS beat(8)5
Avg EPS beat(8)0.51%
EPS beat(12)8
Avg EPS beat(12)0.55%
EPS beat(16)11
Avg EPS beat(16)0.99%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)-1.34%
Revenue beat(4)0
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)-1.34%
Revenue beat(8)1
Avg Revenue beat(8)-1.46%
Revenue beat(12)3
Avg Revenue beat(12)-1.04%
Revenue beat(16)7
Avg Revenue beat(16)-0.36%
PT rev (1m)-2.52%
PT rev (3m)-15.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.98%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-4.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.15 | ||
| Fwd PE | 17.43 | ||
| P/S | 5.54 | ||
| P/FCF | 22.87 | ||
| P/OCF | 14.23 | ||
| P/B | 8.37 | ||
| P/tB | 8.37 | ||
| EV/EBITDA | 13.67 |
EPS(TTM)9.53
EY4.96%
EPS(NY)11.02
Fwd EY5.74%
FCF(TTM)8.4
FCFY4.37%
OCF(TTM)13.49
OCFY7.02%
SpS34.67
BVpS22.94
TBVpS22.94
PEG (NY)4.68
PEG (5Y)3.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.83% | ||
| ROE | 41.97% | ||
| ROCE | 15.6% | ||
| ROIC | 12.03% | ||
| ROICexc | 12.3% | ||
| ROICexgc | 12.3% | ||
| OM | 40.06% | ||
| PM (TTM) | 27.77% | ||
| GM | 79.56% | ||
| FCFM | 24.22% |
ROA(3y)10.05%
ROA(5y)9.8%
ROE(3y)46.87%
ROE(5y)43.64%
ROIC(3y)12.01%
ROIC(5y)11.77%
ROICexc(3y)12.22%
ROICexc(5y)12.01%
ROICexgc(3y)12.22%
ROICexgc(5y)12.01%
ROCE(3y)15.58%
ROCE(5y)15.27%
ROICexcg growth 3Y-1.3%
ROICexcg growth 5Y0.85%
ROICexc growth 3Y-1.3%
ROICexc growth 5Y0.85%
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%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | 147.51% | ||
| Cap/Sales | 14.69% | ||
| Interest Coverage | 7.86 | ||
| Cash Conversion | 77.8% | ||
| Profit Quality | 87.24% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 3.69 |
F-Score7
WACC8.91%
ROIC/WACC1.35
Cap/Depr(3y)153.57%
Cap/Depr(5y)145.22%
Cap/Sales(3y)14.58%
Cap/Sales(5y)14.44%
Profit Quality(3y)81.41%
Profit Quality(5y)88.52%
High Growth Momentum
Growth
EPS 1Y (TTM)6.7%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%0.37%
EPS Next Y4.3%
EPS Next 2Y7.59%
EPS Next 3Y8.26%
EPS Next 5Y9.47%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%-0.07%
Revenue Next Year1.06%
Revenue Next 2Y2.74%
Revenue Next 3Y3.26%
Revenue Next 5Y3.97%
EBIT growth 1Y6.03%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year30.01%
EBIT Next 3Y13.62%
EBIT Next 5Y10.18%
FCF growth 1Y8.32%
FCF growth 3Y-1.12%
FCF growth 5Y2.71%
OCF growth 1Y5.22%
OCF growth 3Y1.15%
OCF growth 5Y1.66%