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 39 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 has a correct valuation and a medium growth rate. 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.
In the past 5 years UNP has always 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 (9.96%) than 82.05% of its industry peers.
UNP's Return On Equity of 39.95% is amongst the best of the industry. UNP outperforms 94.87% of its industry peers.
UNP's Return On Invested Capital of 11.99% is amongst the best of the industry. UNP outperforms 84.62% 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 7.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.96% | ||
| ROE | 39.95% | ||
| ROIC | 11.99% |
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
Looking at the Profit Margin, with a value of 27.82%, UNP belongs to the top of the industry, outperforming 100.00% 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.
UNP's Operating Margin of 40.05% is amongst the best of the industry. UNP outperforms 97.44% 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 (79.41%) than 89.74% of its industry peers.
UNP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.05% | ||
| PM (TTM) | 27.82% | ||
| GM | 79.41% |
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.
UNP has less shares outstanding than it did 1 year ago.
UNP has less shares outstanding than it did 5 years ago.
UNP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.94 indicates that UNP is not in any danger for bankruptcy at the moment.
UNP has a better Altman-Z score (3.94) than 82.05% 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 fine compared to the rest of the industry. UNP outperforms 74.36% of its industry peers.
A Debt/Equity ratio of 1.76 is on the high side and indicates that UNP has dependencies on debt financing.
UNP's Debt to Equity ratio of 1.76 is on the low side compared to the rest of the industry. UNP is outperformed by 79.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 5.29 | ||
| Altman-Z | 3.94 |
ROIC/WACC1.17
WACC10.26%
2.3 Liquidity
UNP has a Current Ratio of 0.77. This is a bad value and indicates that UNP is not financially healthy enough and could expect problems in meeting its short term obligations.
UNP's Current ratio of 0.77 is on the low side compared to the rest of the industry. UNP is outperformed by 76.92% of its industry peers.
A Quick Ratio of 0.62 indicates that UNP may have some problems paying its short term obligations.
UNP has a worse Quick ratio (0.62) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.81% over the past year.
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 0.54% 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)6.81%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%9.23%
Revenue 1Y (TTM)0.54%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%-0.62%
3.2 Future
The Earnings Per Share is expected to grow by 11.63% on average over the next years. This is quite good.
Based on estimates for the next years, UNP will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.
EPS Next Y8.77%
EPS Next 2Y9.97%
EPS Next 3Y10.06%
EPS Next 5Y11.63%
Revenue Next Year3.17%
Revenue Next 2Y4.06%
Revenue Next 3Y4.34%
Revenue Next 5Y4.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 22.38.
Based on the Price/Earnings ratio, UNP is valued a bit cheaper than 71.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. UNP is valued slightly cheaper when compared to this.
UNP is valuated rather expensively with a Price/Forward Earnings ratio of 20.58.
Based on the Price/Forward Earnings ratio, UNP is valued a bit cheaper than 66.67% of the companies in the same industry.
UNP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.38 | ||
| Fwd PE | 20.58 |
4.2 Price Multiples
UNP's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNP indicates a somewhat cheap valuation: UNP is cheaper than 74.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.56 | ||
| EV/EBITDA | 14.93 |
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)2.55
PEG (5Y)3.84
EPS Next 2Y9.97%
EPS Next 3Y10.06%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.19%.
Compared to an average industry Dividend Yield of 1.49, UNP pays a better dividend. On top of this UNP pays more dividend than 92.31% of the companies listed in the same industry.
UNP's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
The dividend of UNP is nicely growing with an annual growth rate of 7.62%!
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)7.62%
Div Incr Years17
Div Non Decr Years25
5.3 Sustainability
47.62% 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.
DP47.62%
EPS Next 2Y9.97%
EPS Next 3Y10.06%
249.31
+4.04 (+1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners82.2%
Inst Owner Change2.12%
Ins Owners0.09%
Ins Owner Change3.69%
Market Cap150.66B
Analysts76.47
Price Target269.13 (7.95%)
Short Float %0.99%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend5.29
Dividend Growth(5Y)7.62%
DP47.62%
Div Incr Years17
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.65%
Min EPS beat(2)-1.96%
Max EPS beat(2)5.25%
EPS beat(4)3
Avg EPS beat(4)2.33%
Min EPS beat(4)-1.96%
Max EPS beat(4)5.99%
EPS beat(8)6
Avg EPS beat(8)1.15%
EPS beat(12)8
Avg EPS beat(12)0.74%
EPS beat(16)11
Avg EPS beat(16)0.93%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)-1.34%
Revenue beat(4)0
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)-0.15%
Revenue beat(8)1
Avg Revenue beat(8)-1.36%
Revenue beat(12)4
Avg Revenue beat(12)-0.74%
Revenue beat(16)7
Avg Revenue beat(16)-0.33%
PT rev (1m)-0.49%
PT rev (3m)2.18%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.38 | ||
| Fwd PE | 20.58 | ||
| P/S | 6.21 | ||
| P/FCF | 25.56 | ||
| P/OCF | 16.12 | ||
| P/B | 8.92 | ||
| P/tB | 8.92 | ||
| EV/EBITDA | 14.93 |
EPS(TTM)11.14
EY4.47%
EPS(NY)12.12
Fwd EY4.86%
FCF(TTM)9.75
FCFY3.91%
OCF(TTM)15.47
OCFY6.2%
SpS40.13
BVpS27.95
TBVpS27.95
PEG (NY)2.55
PEG (5Y)3.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.96% | ||
| ROE | 39.95% | ||
| ROCE | 15.55% | ||
| ROIC | 11.99% | ||
| ROICexc | 12.19% | ||
| ROICexgc | 12.19% | ||
| OM | 40.05% | ||
| PM (TTM) | 27.82% | ||
| GM | 79.41% | ||
| FCFM | 24.31% |
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 | 1.76 | ||
| Debt/FCF | 5.29 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 143.95% | ||
| Cap/Sales | 14.24% | ||
| Interest Coverage | 7.71 | ||
| Cash Conversion | 77.17% | ||
| Profit Quality | 87.36% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 3.94 |
F-Score7
WACC10.26%
ROIC/WACC1.17
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)6.81%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%9.23%
EPS Next Y8.77%
EPS Next 2Y9.97%
EPS Next 3Y10.06%
EPS Next 5Y11.63%
Revenue 1Y (TTM)0.54%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%-0.62%
Revenue Next Year3.17%
Revenue Next 2Y4.06%
Revenue Next 3Y4.34%
Revenue Next 5Y4.89%
EBIT growth 1Y6.95%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year33.81%
EBIT Next 3Y14.54%
EBIT Next 5Y11.55%
FCF growth 1Y23.49%
FCF growth 3Y-1.12%
FCF growth 5Y2.71%
OCF growth 1Y11.54%
OCF growth 3Y1.15%
OCF growth 5Y1.66%