UNION PACIFIC CORP (UNP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:UNP - US9078181081 - Common Stock
196.78 EUR
-1.18 (-0.6%)
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 has a great profitability rating, 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.
- In the past year UNP had a positive cash flow from operations.
- In the past 5 years UNP has always 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 85.71% of its industry peers.
- UNP has a better Return On Equity (40.75%) 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 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
- With a decent Profit Margin value of 28.73%, UNP is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- In the last couple of years the Profit Margin of UNP has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 40.62%, UNP belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- In the last couple of years the Operating Margin of UNP has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 79.83%, UNP is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UNP is still 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.
- Looking at the Altman-Z score, with a value of 3.81, UNP belongs to the top 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 better Debt to FCF ratio (5.29) than 78.57% 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.
- With a Debt to Equity ratio value of 1.75, UNP is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.29 | ||
| Altman-Z | 3.81 |
ROIC/WACC1.25
WACC9.7%
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.
- UNP's Current ratio of 0.75 is on the low side compared to the rest of the industry. UNP is outperformed by 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's Quick ratio of 0.60 is on the low side compared to the rest of the industry. UNP is outperformed by 85.71% of its industry peers.
| 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.
- UNP shows a small growth in Revenue. In the last year, the Revenue has grown by 1.06%.
- 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
- The Earnings Per Share is expected to grow by 8.71% on average over the next years. This is quite good.
- 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.
- 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
- UNP is valuated rather expensively with a Price/Earnings ratio of 19.64.
- The rest of the industry has a similar Price/Earnings ratio as UNP.
- The average S&P500 Price/Earnings ratio is at 27.25. UNP is valued slightly cheaper when compared to this.
- UNP is valuated rather expensively with a Price/Forward Earnings ratio of 18.34.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, UNP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 18.34 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, UNP is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
- The rest of the industry has a similar Price/Free Cash Flow ratio as UNP.
| 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 an expensive valuation of the company.
- 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
- UNP has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.59, UNP pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, UNP pays a bit more dividend than the S&P500 average.
| 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.
- 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 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%.