UNION PACIFIC CORP (UNP)
US9078181081 - Common Stock
We assign a fundamental rating of 6 out of 10 to UNP. 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 some minor concerns on its financial health. UNP is not valued too expensively and it also shows 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.
In the past 5 years UNP always reported a positive cash flow from operatings.
1.2 Ratios
UNP has a better Return On Assets (9.82%) than 84.21% of its industry peers.
With an excellent Return On Equity value of 40.02%, UNP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
UNP's Return On Invested Capital of 11.93% is amongst the best of the industry. UNP outperforms 81.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNP is in line with the industry average of 11.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 40.02% | ||
| ROIC | 11.93% |
ROA(3y)10.15%
ROA(5y)9.73%
ROE(3y)48.91%
ROE(5y)42.19%
ROIC(3y)12.2%
ROIC(5y)11.71%
1.3 Margins
The Profit Margin of UNP (27.33%) is better than 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.
With an excellent Operating Margin value of 39.51%, UNP belongs to the best of the industry, outperforming 97.37% 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.
The Gross Margin of UNP (78.60%) is better than 89.47% 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 | 39.51% | ||
| PM (TTM) | 27.33% | ||
| GM | 78.6% |
OM growth 3Y-2.08%
OM growth 5Y0.19%
PM growth 3Y-1.15%
PM growth 5Y0.24%
GM growth 3Y-2.57%
GM growth 5Y-0.27%
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.
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
UNP has an Altman-Z score of 3.85. This indicates that UNP is financially healthy and has little risk of bankruptcy at the moment.
UNP has a better Altman-Z score (3.85) than 76.32% of its industry peers.
UNP has a debt to FCF ratio of 5.69. This is a neutral value as UNP would need 5.69 years to pay back of all of its debts.
UNP's Debt to FCF ratio of 5.69 is fine compared to the rest of the industry. UNP outperforms 73.68% of its industry peers.
A Debt/Equity ratio of 1.79 is on the high side and indicates that UNP has dependencies on debt financing.
With a Debt to Equity ratio value of 1.79, UNP is not doing good in the industry: 76.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 3.85 |
ROIC/WACC1.5
WACC7.95%
2.3 Liquidity
A Current Ratio of 0.77 indicates that UNP may have some problems paying its short term obligations.
With a Current ratio value of 0.77, UNP is not doing good in the industry: 71.05% of the companies in the same industry are doing better.
A Quick Ratio of 0.63 indicates that UNP may have some problems paying its short term obligations.
With a Quick ratio value of 0.63, UNP is not doing good in the industry: 86.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
UNP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.81%.
The Earnings Per Share has been growing slightly by 5.63% on average over the past years.
The Revenue has been growing slightly by 0.61% in the past year.
UNP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.10% yearly.
EPS 1Y (TTM)4.81%
EPS 3Y8.39%
EPS 5Y5.63%
EPS Q2Q%9.56%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y7.28%
Revenue growth 5Y1.1%
Sales Q2Q%2.52%
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 10.61% yearly.
Based on estimates for the next years, UNP will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y6.11%
EPS Next 2Y8.29%
EPS Next 3Y8.86%
EPS Next 5Y10.61%
Revenue Next Year0.91%
Revenue Next 2Y2.34%
Revenue Next 3Y3.04%
Revenue Next 5Y4.81%
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
Based on the Price/Earnings ratio of 22.26, the valuation of UNP can be described as rather expensive.
73.68% of the companies in the same industry are more expensive than UNP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.20. UNP is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 19.82, UNP is valued on the expensive side.
Based on the Price/Forward Earnings ratio, UNP is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, UNP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.26 | ||
| Fwd PE | 19.82 |
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 cheaper than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.6 | ||
| EV/EBITDA | 14.64 |
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)3.64
PEG (5Y)3.95
EPS Next 2Y8.29%
EPS Next 3Y8.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.28%, UNP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.63, UNP pays a better dividend. On top of this UNP pays more dividend than 97.37% of the companies listed in the same industry.
UNP's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
On average, the dividend of UNP grows each year by 11.21%, 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)11.21%
Div Incr Years17
Div Non Decr Years25
5.3 Sustainability
48.15% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.15%
EPS Next 2Y8.29%
EPS Next 3Y8.86%
UNION PACIFIC CORP
NYSE:UNP (11/22/2024, 8:10:37 PM)
After market: 242.39 0 (0%)242.39
+3.37 (+1.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap146.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.26 | ||
| Fwd PE | 19.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.64
PEG (5Y)3.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 40.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 39.51% | ||
| PM (TTM) | 27.33% | ||
| GM | 78.6% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)4.81%
EPS 3Y8.39%
EPS 5Y
EPS Q2Q%
EPS Next Y6.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.61%
Revenue growth 3Y7.28%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y