UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
USA - NYSE:UNP - US9078181081 - Common Stock
216.77 USD
+0.77 (+0.36%)
Overall UNP gets a fundamental rating of 6 out of 10. We evaluated UNP against 42 industry peers in the Ground Transportation industry. UNP has an excellent profitability rating, but there are some minor 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
UNP had positive earnings in the past year.
In the past year UNP had a positive cash flow from operations.
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 10.11%, UNP belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
Looking at the Return On Equity, with a value of 42.66%, UNP belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
UNP has a Return On Invested Capital of 12.21%. This is amongst the best in the industry. UNP outperforms 92.86% 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 7.92%.
The 3 year average ROIC (12.01%) for UNP is below the current ROIC(12.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 42.66% | ||
| ROIC | 12.21% |
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 28.43%. This is amongst the best in the industry. UNP outperforms 97.62% of its industry peers.
In the last couple of years the Profit Margin of UNP has remained more or less at the same level.
UNP has a Operating Margin of 40.33%. This is amongst the best in the industry. UNP outperforms 100.00% of its industry peers.
UNP's Operating Margin has been stable in the last couple of years.
The Gross Margin of UNP (79.89%) is better than 90.48% 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 | 40.33% | ||
| PM (TTM) | 28.43% | ||
| GM | 79.89% |
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.
The number of shares outstanding for UNP has been reduced compared to 1 year ago.
The number of shares outstanding for UNP has been reduced compared to 5 years ago.
The debt/assets ratio for UNP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.64 indicates that UNP is not in any danger for bankruptcy at the moment.
UNP's Altman-Z score of 3.64 is fine compared to the rest of the industry. UNP outperforms 78.57% of its industry peers.
The Debt to FCF ratio of UNP is 5.24, which is a neutral value as it means it would take UNP, 5.24 years of fcf income to pay off all of its debts.
UNP's Debt to FCF ratio of 5.24 is fine compared to the rest of the industry. UNP outperforms 78.57% of its industry peers.
UNP has a Debt/Equity ratio of 1.86. This is a high value indicating a heavy dependency on external financing.
UNP has a worse Debt to Equity ratio (1.86) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 3.64 |
ROIC/WACC1.37
WACC8.94%
2.3 Liquidity
UNP has a Current Ratio of 0.65. 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 0.65, UNP is doing worse than 88.10% of the companies in the same industry.
A Quick Ratio of 0.53 indicates that UNP may have some problems paying its short term obligations.
With a Quick ratio value of 0.53, UNP is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.42% 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%.
UNP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.24% yearly.
EPS 1Y (TTM)7.42%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%10.58%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%2.45%
3.2 Future
Based on estimates for the next years, UNP will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.34% on average per year.
UNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.14% yearly.
EPS Next Y6.56%
EPS Next 2Y8.18%
EPS Next 3Y8.17%
EPS Next 5Y9.34%
Revenue Next Year1.69%
Revenue Next 2Y3.03%
Revenue Next 3Y3.39%
Revenue Next 5Y7.14%
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 18.95, which indicates a rather expensive current valuation of UNP.
Compared to the rest of the industry, the Price/Earnings ratio of UNP indicates a rather cheap valuation: UNP is cheaper than 83.33% of the companies listed in the same industry.
UNP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 16.63 indicates a correct valuation of UNP.
Based on the Price/Forward Earnings ratio, UNP is valued a bit cheaper than 76.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, UNP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 16.63 |
4.2 Price Multiples
UNP's Enterprise Value to EBITDA is on the same level as the industry average.
92.86% 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 | 20.53 | ||
| EV/EBITDA | 13.03 |
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)2.89
PEG (5Y)3.25
EPS Next 2Y8.18%
EPS Next 3Y8.17%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.56%. 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 1.59. UNP pays more dividend than 95.24% of the companies in the same industry.
UNP's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
On average, the dividend of UNP grows each year by 7.62%, which is quite nice.
UNP has been paying a dividend for at least 10 years, so it has 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
46.49% 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.
DP46.49%
EPS Next 2Y8.18%
EPS Next 3Y8.17%
NYSE:UNP (9/17/2025, 3:26:08 PM)
216.77
+0.77 (+0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners83.42%
Inst Owner Change-1.39%
Ins Owners0.09%
Ins Owner Change-0.03%
Market Cap128.55B
Analysts75.76
Price Target261.38 (20.58%)
Short Float %1.95%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend5.29
Dividend Growth(5Y)7.62%
DP46.49%
Div Incr Years18
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.15%
Min EPS beat(2)-2.76%
Max EPS beat(2)3.06%
EPS beat(4)2
Avg EPS beat(4)0.9%
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)0.67%
EPS beat(16)11
Avg EPS beat(16)0.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)-1.16%
Revenue beat(4)0
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)-1.16%
Revenue beat(8)1
Avg Revenue beat(8)-1.16%
Revenue beat(12)2
Avg Revenue beat(12)-1.25%
Revenue beat(16)6
Avg Revenue beat(16)-0.55%
PT rev (1m)-0.09%
PT rev (3m)4.79%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)1.75%
EPS NY rev (1m)1.69%
EPS NY rev (3m)2.19%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.95 | ||
| Fwd PE | 16.63 | ||
| P/S | 5.27 | ||
| P/FCF | 20.53 | ||
| P/OCF | 13.04 | ||
| P/B | 7.91 | ||
| P/tB | 7.91 | ||
| EV/EBITDA | 13.03 |
EPS(TTM)11.44
EY5.28%
EPS(NY)13.04
Fwd EY6.01%
FCF(TTM)10.56
FCFY4.87%
OCF(TTM)16.62
OCFY7.67%
SpS41.13
BVpS27.41
TBVpS27.41
PEG (NY)2.89
PEG (5Y)3.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 42.66% | ||
| ROCE | 15.83% | ||
| ROIC | 12.21% | ||
| ROICexc | 12.42% | ||
| ROICexgc | 12.42% | ||
| OM | 40.33% | ||
| PM (TTM) | 28.43% | ||
| GM | 79.89% | ||
| FCFM | 25.67% |
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 | 1.86 | ||
| Debt/FCF | 5.24 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 147.88% | ||
| Cap/Sales | 14.74% | ||
| Interest Coverage | 7.97 | ||
| Cash Conversion | 80.34% | ||
| Profit Quality | 90.28% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 3.64 |
F-Score7
WACC8.94%
ROIC/WACC1.37
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)7.42%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%10.58%
EPS Next Y6.56%
EPS Next 2Y8.18%
EPS Next 3Y8.17%
EPS Next 5Y9.34%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%2.45%
Revenue Next Year1.69%
Revenue Next 2Y3.03%
Revenue Next 3Y3.39%
Revenue Next 5Y7.14%
EBIT growth 1Y5.14%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year30.85%
EBIT Next 3Y13.62%
EBIT Next 5Y14.53%
FCF growth 1Y14.44%
FCF growth 3Y-1.12%
FCF growth 5Y2.71%
OCF growth 1Y8.87%
OCF growth 3Y1.15%
OCF growth 5Y1.66%