UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNP - US9078181081 - Common Stock
231.87 USD
-1.19 (-0.51%)
Taking everything into account, UNP scores 6 out of 10 in our fundamental rating. UNP was compared to 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.
UNP had a positive operating cash flow in the past year.
In the past 5 years UNP has always been profitable.
Each year in the past 5 years UNP had a positive operating cash flow.
1.2 Ratios
UNP's Return On Assets of 10.27% is amongst the best of the industry. UNP outperforms 92.86% of its industry peers.
Looking at the Return On Equity, with a value of 40.75%, UNP belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
The Return On Invested Capital of UNP (12.12%) is better than 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNP is significantly above the industry average of 6.82%.
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 95.24% of its industry peers.
UNP's Profit Margin has been stable in the last couple of years.
The Operating Margin of UNP (40.62%) is better than 100.00% of its industry peers.
UNP's Operating Margin has been stable in the last couple of years.
UNP has a better Gross Margin (79.83%) 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 | 40.62% | ||
| 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
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.
Compared to 5 years ago, UNP has less shares outstanding
The debt/assets ratio for UNP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.83 indicates that UNP is not in any danger for bankruptcy at the moment.
The Altman-Z score of UNP (3.83) is better than 78.57% of its industry peers.
UNP has a debt to FCF ratio of 5.29. This is a neutral value as UNP would need 5.29 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.29, UNP is doing good in the industry, outperforming 76.19% 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.
UNP has a worse Debt to Equity ratio (1.75) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.29 | ||
| Altman-Z | 3.83 |
ROIC/WACC1.24
WACC9.8%
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 80.95% of the companies in the same industry.
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.
With a Quick ratio value of 0.60, UNP is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
UNP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.08%, which is quite good.
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.
Measured over the past years, UNP shows a small growth in Revenue. The Revenue has been growing by 2.24% on average per year.
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
Based on estimates for the next years, UNP will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.05% on average per year.
UNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.82% yearly.
EPS Next Y6.35%
EPS Next 2Y6.9%
EPS Next 3Y7.46%
EPS Next 5Y9.05%
Revenue Next Year1.38%
Revenue Next 2Y2.5%
Revenue Next 3Y3.42%
Revenue Next 5Y7.82%
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
UNP is valuated rather expensively with a Price/Earnings ratio of 19.70.
78.57% 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 26.77, UNP is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.21, the valuation of UNP can be described as rather expensive.
78.57% of the companies in the same industry are more expensive than UNP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.35. UNP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 18.21 |
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 90.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.87 | ||
| EV/EBITDA | 13.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of UNP may justify a higher PE ratio.
PEG (NY)3.1
PEG (5Y)3.38
EPS Next 2Y6.9%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.35%, UNP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.74, UNP pays a better dividend. On top of this UNP pays more dividend than 92.86% of the companies listed in the same industry.
UNP's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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 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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP45.77%
EPS Next 2Y6.9%
EPS Next 3Y7.46%
NYSE:UNP (12/31/2025, 1:40:02 PM)
231.87
-1.19 (-0.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners86.91%
Inst Owner Change4.01%
Ins Owners0.09%
Ins Owner Change-0.01%
Market Cap137.54B
Revenue(TTM)24.55B
Net Income(TTM)7.05B
Analysts80
Price Target266.69 (15.02%)
Short Float %4.11%
Short Ratio7.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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)-0.06%
PT rev (3m)2.03%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)-3.75%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 18.21 | ||
| P/S | 5.6 | ||
| P/FCF | 22.87 | ||
| P/OCF | 14.14 | ||
| P/B | 7.95 | ||
| P/tB | 7.95 | ||
| EV/EBITDA | 13.63 |
EPS(TTM)11.77
EY5.08%
EPS(NY)12.73
Fwd EY5.49%
FCF(TTM)10.14
FCFY4.37%
OCF(TTM)16.4
OCFY7.07%
SpS41.38
BVpS29.17
TBVpS29.17
PEG (NY)3.1
PEG (5Y)3.38
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 | 3.83 |
F-Score6
WACC9.8%
ROIC/WACC1.24
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 Y6.35%
EPS Next 2Y6.9%
EPS Next 3Y7.46%
EPS Next 5Y9.05%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%2.51%
Revenue Next Year1.38%
Revenue Next 2Y2.5%
Revenue Next 3Y3.42%
Revenue Next 5Y7.82%
EBIT growth 1Y3.91%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year30.09%
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 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 6.35% in the next year.