UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
USA - NYSE:UNP - US9078181081 - Common Stock
217.99 USD
+0.61 (+0.28%)
218.2 USD
+0.21 (+0.1%)
UNP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 43 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. Finally UNP also has an excellent dividend rating.
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.
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
The Return On Assets of UNP (10.27%) is better than 93.02% of its industry peers.
UNP's Return On Equity of 40.75% is amongst the best of the industry. UNP outperforms 97.67% of its industry peers.
UNP's Return On Invested Capital of 12.12% is amongst the best of the industry. UNP outperforms 93.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNP is above the industry average of 7.65%.
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
UNP has a better Profit Margin (28.73%) than 95.35% of its industry peers.
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 100.00% 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.
UNP's Gross Margin of 79.83% is amongst the best of the industry. UNP outperforms 90.70% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UNP is creating some value.
UNP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, UNP has less shares outstanding
Compared to 1 year ago, UNP has an improved debt to assets ratio.
2.2 Solvency
UNP has an Altman-Z score of 3.72. This indicates that UNP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of UNP (3.72) is better than 79.07% 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.
With a decent Debt to FCF ratio value of 5.29, UNP is doing good in the industry, outperforming 79.07% of the companies in the same industry.
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: 79.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.29 | ||
| Altman-Z | 3.72 |
ROIC/WACC1.35
WACC8.96%
2.3 Liquidity
A Current Ratio of 0.75 indicates that UNP may have some problems paying its short term obligations.
UNP has a worse Current ratio (0.75) than 81.40% 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 has a Quick ratio of 0.60. This is amonst the worse of the industry: UNP underperforms 88.37% 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.
UNP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.83% yearly.
Looking at the last year, UNP shows a small growth in Revenue. The Revenue has grown by 1.06% in the last 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 9.32% yearly.
Based on estimates for the next years, UNP will show a small growth in Revenue. The Revenue will grow by 7.09% on average per year.
EPS Next Y6.31%
EPS Next 2Y7.42%
EPS Next 3Y7.59%
EPS Next 5Y9.32%
Revenue Next Year1.74%
Revenue Next 2Y2.9%
Revenue Next 3Y3.41%
Revenue Next 5Y7.09%
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
The Price/Earnings ratio is 18.52, which indicates a rather expensive current valuation of UNP.
83.72% of the companies in the same industry are more expensive than UNP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.67, UNP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.96, UNP is valued correctly.
UNP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UNP is cheaper than 76.74% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UNP to the average of the S&P500 Index (31.86), we can say UNP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 16.96 |
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.
UNP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UNP is cheaper than 93.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.5 | ||
| EV/EBITDA | 12.88 |
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)2.94
PEG (5Y)3.17
EPS Next 2Y7.42%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.52%.
UNP's Dividend Yield is rather good when compared to the industry average which is at 1.69. UNP pays more dividend than 95.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, UNP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
On average, the dividend of UNP grows each year by 7.62%, which is quite nice.
UNP has paid a dividend for at least 10 years, which is a reliable track record.
UNP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.62%
Div Incr Years18
Div Non Decr Years26
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 more than its dividend. This makes the dividend growth sustainable.
DP45.77%
EPS Next 2Y7.42%
EPS Next 3Y7.59%
217.99
+0.61 (+0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners82.5%
Inst Owner Change-1.1%
Ins Owners0.09%
Ins Owner Change0.01%
Market Cap129.29B
Revenue(TTM)24.55B
Net Income(TTM)7.05B
Analysts77.58
Price Target266.03 (22.04%)
Short Float %3.1%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend5.29
Dividend Growth(5Y)7.62%
DP45.77%
Div Incr Years18
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.47%
Min EPS beat(2)1.88%
Max EPS beat(2)3.06%
EPS beat(4)3
Avg EPS beat(4)1.86%
Min EPS beat(4)-2.76%
Max EPS beat(4)5.25%
EPS beat(8)6
Avg EPS beat(8)1.97%
EPS beat(12)8
Avg EPS beat(12)0.55%
EPS beat(16)11
Avg EPS beat(16)0.75%
Revenue beat(2)0
Avg Revenue beat(2)-1.09%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)-1.01%
Revenue beat(4)0
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)-1.01%
Revenue beat(8)1
Avg Revenue beat(8)-1.07%
Revenue beat(12)1
Avg Revenue beat(12)-1.46%
Revenue beat(16)5
Avg Revenue beat(16)-0.73%
PT rev (1m)1.78%
PT rev (3m)4.17%
EPS NQ rev (1m)-2.71%
EPS NQ rev (3m)-2.63%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)1.45%
Revenue NQ rev (1m)-1.43%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 16.96 | ||
| P/S | 5.27 | ||
| P/FCF | 21.5 | ||
| P/OCF | 13.29 | ||
| P/B | 7.47 | ||
| P/tB | 7.47 | ||
| EV/EBITDA | 12.88 |
EPS(TTM)11.77
EY5.4%
EPS(NY)12.85
Fwd EY5.9%
FCF(TTM)10.14
FCFY4.65%
OCF(TTM)16.4
OCFY7.52%
SpS41.38
BVpS29.17
TBVpS29.17
PEG (NY)2.94
PEG (5Y)3.17
Graham Number87.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.27% | ||
| ROE | 40.75% | ||
| ROCE | 15.72% | ||
| ROIC | 12.12% | ||
| ROICexc | 12.28% | ||
| ROICexgc | 12.28% | ||
| OM | 40.62% | ||
| PM (TTM) | 28.73% | ||
| GM | 79.83% | ||
| FCFM | 24.5% |
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%
ROICexgc growth 3Y-1.3%
ROICexgc 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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.29 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 151.78% | ||
| Cap/Sales | 15.13% | ||
| Interest Coverage | 7.86 | ||
| Cash Conversion | 78.34% | ||
| Profit Quality | 85.27% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 3.72 |
F-Score6
WACC8.96%
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)8.08%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%12%
EPS Next Y6.31%
EPS Next 2Y7.42%
EPS Next 3Y7.59%
EPS Next 5Y9.32%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%2.51%
Revenue Next Year1.74%
Revenue Next 2Y2.9%
Revenue Next 3Y3.41%
Revenue Next 5Y7.09%
EBIT growth 1Y3.91%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year30.89%
EBIT Next 3Y13.67%
EBIT Next 5Y14.8%
FCF growth 1Y26.22%
FCF growth 3Y-1.12%
FCF growth 5Y2.71%
OCF growth 1Y17.53%
OCF growth 3Y1.15%
OCF growth 5Y1.66%
UNION PACIFIC CORP / UNP FAQ
Can you provide the ChartMill fundamental rating for UNION PACIFIC CORP?
ChartMill assigns a fundamental rating of 6 / 10 to UNP.
Can you provide the valuation status for UNION PACIFIC CORP?
ChartMill assigns a valuation rating of 5 / 10 to UNION PACIFIC CORP (UNP). This can be considered as Fairly Valued.
Can you provide the profitability details for UNION PACIFIC CORP?
UNION PACIFIC CORP (UNP) has a profitability rating of 9 / 10.
How financially healthy is UNION PACIFIC CORP?
The financial health rating of UNION PACIFIC CORP (UNP) is 4 / 10.
What is the expected EPS growth for UNION PACIFIC CORP (UNP) stock?
The Earnings per Share (EPS) of UNION PACIFIC CORP (UNP) is expected to grow by 6.31% in the next year.