UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
NYSE:UNP - New York Stock Exchange, Inc. - US9078181081 - Common Stock - Currency: USD
Taking everything into account, UNP scores 5 out of 10 in our fundamental rating. UNP was compared to 38 industry peers in the Ground Transportation industry. While UNP belongs to the best of the industry regarding profitability, there are concerns on its financial health. UNP is not valued too expensively and it also shows a decent growth rate. UNP also has an excellent dividend rating.
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.
Each year in the past 5 years UNP had a positive operating cash flow.
1.2 Ratios
UNP has a Return On Assets of 9.96%. This is amongst the best in the industry. UNP outperforms 84.21% of its industry peers.
Looking at the Return On Equity, with a value of 39.95%, UNP belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.99%, UNP belongs to the best of the industry, outperforming 84.21% 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 7.67%.
| 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 Profit Margin of 27.82%. This is amongst the best in the industry. UNP outperforms 94.74% of its industry peers.
In the last couple of years the Profit Margin of UNP has remained more or less at the same level.
The Operating Margin of UNP (40.05%) is better than 97.37% of its industry peers.
UNP's Operating Margin has been stable in the last couple of years.
UNP has a better Gross Margin (79.41%) than 89.47% of its industry peers.
UNP's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UNP is creating some value.
Compared to 1 year ago, UNP has less shares outstanding
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
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.
With a decent Debt to FCF ratio value of 5.29, UNP is doing good in the industry, outperforming 71.05% of the companies in the same industry.
A Debt/Equity ratio of 1.76 is on the high side and indicates that UNP has dependencies on debt financing.
The Debt to Equity ratio of UNP (1.76) is worse than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 5.29 | ||
| Altman-Z | N/A |
ROIC/WACC1.43
WACC8.39%
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.
UNP has a worse Current ratio (0.77) than 73.68% of its industry peers.
UNP has a Quick 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.
UNP has a worse Quick ratio (0.77) than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
UNP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.81%.
The Earnings Per Share has been growing slightly by 5.83% on average over the past years.
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
The Earnings Per Share is expected to grow by 11.63% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y8.93%
EPS Next 2Y10.31%
EPS Next 3Y10.34%
EPS Next 5Y11.63%
Revenue Next Year3.68%
Revenue Next 2Y4.33%
Revenue Next 3Y4.89%
Revenue Next 5Y4.89%
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 22.37.
Based on the Price/Earnings ratio, UNP is valued a bit cheaper than the industry average as 60.53% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.42, UNP is valued a bit cheaper.
UNP is valuated rather expensively with a Price/Forward Earnings ratio of 20.53.
UNP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UNP is cheaper than 63.16% of the companies in the same industry.
UNP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.37 | ||
| Fwd PE | 20.53 |
4.2 Price Multiples
UNP's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, UNP is valued a bit cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.63 | ||
| EV/EBITDA | 15.22 |
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)2.5
PEG (5Y)3.83
EPS Next 2Y10.31%
EPS Next 3Y10.34%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.15%. Purely for dividend investing, there may be better candidates out there.
UNP's Dividend Yield is rather good when compared to the industry average which is at 1.26. UNP pays more dividend than 97.37% of the companies in the same industry.
UNP's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
5.2 History
On average, the dividend of UNP grows each year by 7.58%, which is quite nice.
UNP has paid a dividend for at least 10 years, which is a reliable track record.
UNP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.58%
Div Incr Years17
Div Non Decr Years25
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.
The dividend of UNP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.62%
EPS Next 2Y10.31%
EPS Next 3Y10.34%
UNION PACIFIC CORP
NYSE:UNP (1/28/2025, 8:09:37 PM)
After market: 249.16 0 (0%)249.16
-5.26 (-2.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners81.11%
Inst Owner Change-0.08%
Ins Owners0.08%
Ins Owner Change-0.23%
Market Cap151.06B
Analysts76.47
Price Target263.66 (5.82%)
Short Float %0.89%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
Yearly Dividend5.28
Dividend Growth(5Y)7.58%
DP47.62%
Div Incr Years17
Div Non Decr Years25
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)0.1%
PT rev (3m)-1.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.4%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.79%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.37 | ||
| Fwd PE | 20.53 | ||
| P/S | 6.23 | ||
| P/FCF | 25.63 | ||
| P/OCF | 16.16 | ||
| P/B | 8.94 | ||
| P/tB | 8.94 | ||
| EV/EBITDA | 15.22 |
EPS(TTM)11.14
EY4.47%
EPS(NY)12.13
Fwd EY4.87%
FCF(TTM)9.72
FCFY3.9%
OCF(TTM)15.42
OCFY6.19%
SpS40
BVpS27.86
TBVpS27.86
PEG (NY)2.5
PEG (5Y)3.83
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 | 250 | ||
| Cash Conversion | 77.17% | ||
| Profit Quality | 87.36% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | N/A |
F-Score7
WACC8.39%
ROIC/WACC1.43
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 Y8.93%
EPS Next 2Y10.31%
EPS Next 3Y10.34%
EPS Next 5Y11.63%
Revenue 1Y (TTM)0.54%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%-0.62%
Revenue Next Year3.68%
Revenue Next 2Y4.33%
Revenue Next 3Y4.89%
Revenue Next 5Y4.89%
EBIT growth 1Y6.95%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year34.47%
EBIT Next 3Y15.35%
EBIT Next 5Y11.56%
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%