UNION PACIFIC CORP (UNP.DE) Stock Fundamental Analysis
FRA:UNP - Deutsche Boerse Ag - US9078181081 - Common Stock - Currency: EUR
Taking everything into account, UNP scores 5 out of 10 in our fundamental rating. UNP was compared to 12 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
UNP had positive earnings in the past year.
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 9.96%, UNP belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
UNP's Return On Equity of 39.95% is amongst the best of the industry. UNP outperforms 83.33% of its industry peers.
UNP has a Return On Invested Capital of 11.99%. This is amongst the best in the industry. UNP outperforms 91.67% of its industry peers.
UNP had an Average Return On Invested Capital over the past 3 years of 12.01%. This is above the industry average of 8.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.96% | ||
| ROE | 39.95% | ||
| ROIC | 11.99% |
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 (27.82%) than 91.67% of its industry peers.
UNP's Profit Margin has been stable in the last couple of years.
UNP has a better Operating Margin (40.05%) than 100.00% of its industry peers.
UNP's Operating Margin has been stable in the last couple of years.
The Gross Margin of UNP (79.41%) is better than 75.00% 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 | 40.05% | ||
| PM (TTM) | 27.82% | ||
| GM | 79.41% |
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.
Compared to 1 year ago, UNP has less shares outstanding
UNP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, UNP has an improved debt to assets ratio.
2.2 Solvency
UNP has an Altman-Z score of 3.92. This indicates that UNP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of UNP (3.92) is better than 91.67% of its industry peers.
The Debt to FCF ratio of UNP is 5.29, which is a neutral value as it means it would take UNP, 5.29 years of fcf income to pay off 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 66.67% of its industry peers.
UNP has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
UNP has a worse Debt to Equity ratio (1.76) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 5.29 | ||
| Altman-Z | 3.92 |
ROIC/WACC1.17
WACC10.26%
2.3 Liquidity
UNP has a Current Ratio of 0.77. 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 Current ratio, with a value of 0.77, UNP is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 0.62 indicates that UNP may have some problems paying its short term obligations.
The Quick ratio of UNP (0.62) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.81% over the past year.
UNP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.83% yearly.
The Revenue has been growing slightly by 0.54% in the past year.
Measured over the past years, UNP shows a small growth in Revenue. The Revenue has been growing by 2.24% on average per year.
EPS 1Y (TTM)6.81%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%9.23%
Revenue 1Y (TTM)0.54%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%-0.62%
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 11.63% yearly.
UNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y8.77%
EPS Next 2Y9.97%
EPS Next 3Y10.06%
EPS Next 5Y11.63%
Revenue Next Year3.17%
Revenue Next 2Y4.06%
Revenue Next 3Y4.34%
Revenue Next 5Y4.89%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 22.11, UNP is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as UNP.
UNP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
UNP is valuated rather expensively with a Price/Forward Earnings ratio of 20.33.
UNP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, UNP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.11 | ||
| Fwd PE | 20.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UNP is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as UNP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.25 | ||
| EV/EBITDA | 14.78 |
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)2.52
PEG (5Y)3.79
EPS Next 2Y9.97%
EPS Next 3Y10.06%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.19%.
Compared to an average industry Dividend Yield of 3.49, UNP has a dividend in line with its industry peers.
UNP's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
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
47.62% 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.
DP47.62%
EPS Next 2Y9.97%
EPS Next 3Y10.06%
FRA:UNP (3/7/2025, 7:00:00 PM)
226.85
+0.15 (+0.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners82.2%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap137.08B
Analysts76.47
Price Target256.43 (13.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend4.88
Dividend Growth(5Y)7.62%
DP47.62%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.65%
Min EPS beat(2)-1.96%
Max EPS beat(2)5.25%
EPS beat(4)3
Avg EPS beat(4)2.33%
Min EPS beat(4)-1.96%
Max EPS beat(4)5.99%
EPS beat(8)6
Avg EPS beat(8)1.15%
EPS beat(12)8
Avg EPS beat(12)0.74%
EPS beat(16)11
Avg EPS beat(16)0.93%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)-1.34%
Revenue beat(4)0
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)-0.15%
Revenue beat(8)1
Avg Revenue beat(8)-1.36%
Revenue beat(12)4
Avg Revenue beat(12)-0.74%
Revenue beat(16)7
Avg Revenue beat(16)-0.33%
PT rev (1m)-0.45%
PT rev (3m)2.56%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.11 | ||
| Fwd PE | 20.33 | ||
| P/S | 6.14 | ||
| P/FCF | 25.25 | ||
| P/OCF | 15.92 | ||
| P/B | 8.81 | ||
| P/tB | 8.81 | ||
| EV/EBITDA | 14.78 |
EPS(TTM)10.26
EY4.52%
EPS(NY)11.16
Fwd EY4.92%
FCF(TTM)8.98
FCFY3.96%
OCF(TTM)14.25
OCFY6.28%
SpS36.96
BVpS25.74
TBVpS25.74
PEG (NY)2.52
PEG (5Y)3.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.96% | ||
| ROE | 39.95% | ||
| ROCE | 15.55% | ||
| ROIC | 11.99% | ||
| ROICexc | 12.19% | ||
| ROICexgc | 12.19% | ||
| OM | 40.05% | ||
| PM (TTM) | 27.82% | ||
| GM | 79.41% | ||
| FCFM | 24.31% |
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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 5.29 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 143.95% | ||
| Cap/Sales | 14.24% | ||
| Interest Coverage | 7.71 | ||
| Cash Conversion | 77.17% | ||
| Profit Quality | 87.36% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 3.92 |
F-Score7
WACC10.26%
ROIC/WACC1.17
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)6.81%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%9.23%
EPS Next Y8.77%
EPS Next 2Y9.97%
EPS Next 3Y10.06%
EPS Next 5Y11.63%
Revenue 1Y (TTM)0.54%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%-0.62%
Revenue Next Year3.17%
Revenue Next 2Y4.06%
Revenue Next 3Y4.34%
Revenue Next 5Y4.89%
EBIT growth 1Y6.95%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year33.81%
EBIT Next 3Y14.54%
EBIT Next 5Y11.55%
FCF growth 1Y23.49%
FCF growth 3Y-1.12%
FCF growth 5Y2.71%
OCF growth 1Y11.54%
OCF growth 3Y1.15%
OCF growth 5Y1.66%