UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
USA - NYSE:UNP - US9078181081 - Common Stock
221.48 USD
-2.07 (-0.93%)
221.48 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to UNP. UNP was compared to 43 industry peers in the Ground Transportation industry. UNP has an excellent profitability rating, but there are some minor concerns on its financial health. UNP has a decent growth rate and is not valued too expensively. Finally UNP also has an excellent dividend rating. With these ratings, UNP could be worth investigating further for dividend investing!.
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.
UNP had positive earnings in each of the past 5 years.
UNP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.27%, UNP belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
The Return On Equity of UNP (40.75%) is better than 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.
UNP had an Average Return On Invested Capital over the past 3 years of 12.01%. This is above the industry average of 7.44%.
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
The Profit Margin of UNP (28.73%) is better than 95.35% of its industry peers.
UNP's Profit Margin has been stable in the last couple of years.
UNP has a better Operating Margin (40.62%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of UNP has remained more or less at the same level.
UNP has a better Gross Margin (79.83%) than 90.70% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UNP 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.
UNP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.76 indicates that UNP is not in any danger for bankruptcy at the moment.
The Altman-Z score of UNP (3.76) is better than 76.74% 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's Debt to FCF ratio of 5.29 is amongst the best of the industry. UNP outperforms 81.40% of its industry peers.
A Debt/Equity ratio of 1.75 is on the high side and indicates that UNP has dependencies on debt financing.
UNP has a Debt to Equity ratio of 1.75. This is in the lower half of the industry: UNP underperforms 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.29 | ||
| Altman-Z | 3.76 |
ROIC/WACC1.37
WACC8.86%
2.3 Liquidity
A Current Ratio of 0.75 indicates that UNP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.75, UNP is doing worse than 79.07% of the companies in the same industry.
A Quick Ratio of 0.60 indicates that UNP may have some problems paying its short term obligations.
The Quick ratio of UNP (0.60) is worse than 86.05% 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.
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)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 9.21% yearly.
Based on estimates for the next years, UNP will show a small growth in Revenue. The Revenue will grow by 7.88% on average per year.
EPS Next Y6.48%
EPS Next 2Y7.03%
EPS Next 3Y7.33%
EPS Next 5Y9.21%
Revenue Next Year1.4%
Revenue Next 2Y2.48%
Revenue Next 3Y3.19%
Revenue Next 5Y7.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 18.82 indicates a rather expensive valuation of UNP.
UNP's Price/Earnings ratio is rather cheap when compared to the industry. UNP is cheaper than 81.40% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, UNP is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.36 indicates a rather expensive valuation of UNP.
Based on the Price/Forward Earnings ratio, UNP is valued a bit cheaper than the industry average as 76.74% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.57. UNP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 17.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as UNP.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNP indicates a rather cheap valuation: UNP is cheaper than 90.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.85 | ||
| EV/EBITDA | 13.17 |
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)2.91
PEG (5Y)3.23
EPS Next 2Y7.03%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.53%, UNP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.71, UNP pays a better dividend. On top of this UNP pays more dividend than 95.35% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, UNP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
The dividend of UNP is nicely growing with an annual growth rate of 7.62%!
UNP has been paying a dividend for at least 10 years, so it has 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)7.62%
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 2Y7.03%
EPS Next 3Y7.33%
221.48
-2.07 (-0.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners82.5%
Inst Owner Change-0.95%
Ins Owners0.09%
Ins Owner Change0.01%
Market Cap131.36B
Revenue(TTM)24.55B
Net Income(TTM)7.05B
Analysts78.75
Price Target266.03 (20.11%)
Short Float %3.1%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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)1.23%
PT rev (3m)1.68%
EPS NQ rev (1m)-2.99%
EPS NQ rev (3m)-2.96%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)1.61%
Revenue NQ rev (1m)-1.58%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 17.36 | ||
| P/S | 5.35 | ||
| P/FCF | 21.85 | ||
| P/OCF | 13.51 | ||
| P/B | 7.59 | ||
| P/tB | 7.59 | ||
| EV/EBITDA | 13.17 |
EPS(TTM)11.77
EY5.31%
EPS(NY)12.76
Fwd EY5.76%
FCF(TTM)10.14
FCFY4.58%
OCF(TTM)16.4
OCFY7.4%
SpS41.38
BVpS29.17
TBVpS29.17
PEG (NY)2.91
PEG (5Y)3.23
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 | 3.76 |
F-Score6
WACC8.86%
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)8.08%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%12%
EPS Next Y6.48%
EPS Next 2Y7.03%
EPS Next 3Y7.33%
EPS Next 5Y9.21%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%2.51%
Revenue Next Year1.4%
Revenue Next 2Y2.48%
Revenue Next 3Y3.19%
Revenue Next 5Y7.88%
EBIT growth 1Y3.91%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year30.89%
EBIT Next 3Y13.67%
EBIT Next 5Y16.45%
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 5 / 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 6.48% in the next year.