UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
NYSE:UNP - New York Stock Exchange, Inc. - US9078181081 - Common Stock - Currency: USD
UNP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 40 industry peers in the Ground Transportation industry. UNP scores excellent on profitability, 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.
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 better Return On Assets (9.83%) than 85.00% of its industry peers.
Looking at the Return On Equity, with a value of 41.97%, UNP belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
UNP has a better Return On Invested Capital (12.03%) than 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNP is above the industry average of 8.58%.
The last Return On Invested Capital (12.03%) for UNP is above the 3 year average (12.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.83% | ||
| ROE | 41.97% | ||
| ROIC | 12.03% |
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
With an excellent Profit Margin value of 27.77%, UNP belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
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 40.06%, UNP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
UNP's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 79.56%, UNP belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
UNP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.06% | ||
| PM (TTM) | 27.77% | ||
| GM | 79.56% |
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
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 3.77. This indicates that UNP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of UNP (3.77) is better than 72.50% of its industry peers.
The Debt to FCF ratio of UNP is 5.59, which is a neutral value as it means it would take UNP, 5.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UNP (5.59) is better than 75.00% of its industry peers.
UNP has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.91, UNP is not doing good in the industry: 82.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.77 |
ROIC/WACC1.31
WACC9.16%
2.3 Liquidity
A Current Ratio of 0.73 indicates that UNP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.73, UNP is doing worse than 85.00% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that UNP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.61, UNP is doing worse than 92.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
UNP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.70%.
Measured over the past 5 years, UNP shows a small growth in Earnings Per Share. The EPS has been growing by 5.83% on average per year.
The Revenue has been growing slightly by 0.63% in the past year.
UNP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.24% yearly.
EPS 1Y (TTM)6.7%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%0.37%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%-0.07%
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 9.47% on average per year.
Based on estimates for the next years, UNP will show a small growth in Revenue. The Revenue will grow by 3.97% on average per year.
EPS Next Y4.3%
EPS Next 2Y7.59%
EPS Next 3Y8.26%
EPS Next 5Y9.47%
Revenue Next Year1.06%
Revenue Next 2Y2.74%
Revenue Next 3Y3.26%
Revenue Next 5Y3.97%
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
The Price/Earnings ratio is 21.19, which indicates a rather expensive current valuation of UNP.
70.00% of the companies in the same industry are more expensive than UNP, based on the Price/Earnings ratio.
UNP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 18.32, which indicates a rather expensive current valuation of UNP.
67.50% of the companies in the same industry are more expensive than UNP, based on the Price/Forward Earnings ratio.
UNP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 18.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as UNP.
UNP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UNP is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.04 | ||
| EV/EBITDA | 14.23 |
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)4.93
PEG (5Y)3.63
EPS Next 2Y7.59%
EPS Next 3Y8.26%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.27%.
UNP's Dividend Yield is rather good when compared to the industry average which is at 1.55. UNP pays more dividend than 97.50% of the companies in the same industry.
UNP's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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
47.86% of the earnings are spent on dividend by UNP. 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.
DP47.86%
EPS Next 2Y7.59%
EPS Next 3Y8.26%
236.28
-0.88 (-0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners83.09%
Inst Owner Change0.42%
Ins Owners0.09%
Ins Owner Change3.73%
Market Cap141.17B
Analysts76.57
Price Target249.87 (5.75%)
Short Float %1.11%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Yearly Dividend5.29
Dividend Growth(5Y)7.62%
DP47.86%
Div Incr Years18
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.25%
Min EPS beat(2)-2.76%
Max EPS beat(2)5.25%
EPS beat(4)2
Avg EPS beat(4)0.14%
Min EPS beat(4)-2.76%
Max EPS beat(4)5.25%
EPS beat(8)5
Avg EPS beat(8)0.51%
EPS beat(12)8
Avg EPS beat(12)0.55%
EPS beat(16)11
Avg EPS beat(16)0.99%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)-1.34%
Revenue beat(4)0
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)-1.34%
Revenue beat(8)1
Avg Revenue beat(8)-1.46%
Revenue beat(12)3
Avg Revenue beat(12)-1.04%
Revenue beat(16)7
Avg Revenue beat(16)-0.36%
PT rev (1m)0.01%
PT rev (3m)-7.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.98%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-4.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 18.32 | ||
| P/S | 5.82 | ||
| P/FCF | 24.04 | ||
| P/OCF | 14.96 | ||
| P/B | 8.8 | ||
| P/tB | 8.8 | ||
| EV/EBITDA | 14.23 |
EPS(TTM)11.15
EY4.72%
EPS(NY)12.9
Fwd EY5.46%
FCF(TTM)9.83
FCFY4.16%
OCF(TTM)15.79
OCFY6.68%
SpS40.58
BVpS26.84
TBVpS26.84
PEG (NY)4.93
PEG (5Y)3.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.83% | ||
| ROE | 41.97% | ||
| ROCE | 15.6% | ||
| ROIC | 12.03% | ||
| ROICexc | 12.3% | ||
| ROICexgc | 12.3% | ||
| OM | 40.06% | ||
| PM (TTM) | 27.77% | ||
| GM | 79.56% | ||
| FCFM | 24.22% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | 147.51% | ||
| Cap/Sales | 14.69% | ||
| Interest Coverage | 7.86 | ||
| Cash Conversion | 77.8% | ||
| Profit Quality | 87.24% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 3.77 |
F-Score7
WACC9.16%
ROIC/WACC1.31
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)6.7%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%0.37%
EPS Next Y4.3%
EPS Next 2Y7.59%
EPS Next 3Y8.26%
EPS Next 5Y9.47%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%-0.07%
Revenue Next Year1.06%
Revenue Next 2Y2.74%
Revenue Next 3Y3.26%
Revenue Next 5Y3.97%
EBIT growth 1Y6.03%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year30.01%
EBIT Next 3Y13.62%
EBIT Next 5Y10.18%
FCF growth 1Y8.32%
FCF growth 3Y-1.12%
FCF growth 5Y2.71%
OCF growth 1Y5.22%
OCF growth 3Y1.15%
OCF growth 5Y1.66%