UNION PACIFIC CORP (UNP)
US9078181081 - Common Stock
UNP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 37 industry peers in the Ground Transportation industry. While UNP has a great profitability rating, there are some minor concerns on its financial health. UNP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year UNP was profitable.
UNP had a positive operating cash flow in the past year.
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
The Return On Assets of UNP (9.82%) is better than 83.78% of its industry peers.
UNP has a better Return On Equity (40.02%) than 100.00% of its industry peers.
UNP's Return On Invested Capital of 11.93% is amongst the best of the industry. UNP outperforms 81.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UNP is in line with the industry average of 11.94%.
| 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 94.59% of its industry peers.
UNP's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 39.51%, UNP belongs to the top of the industry, outperforming 97.30% of the companies in the same industry.
UNP's Operating Margin has been stable in the last couple of years.
UNP has a better Gross Margin (78.60%) than 89.19% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UNP is still 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.
Compared to 1 year ago, UNP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.79 indicates that UNP is not in any danger for bankruptcy at the moment.
UNP's Altman-Z score of 3.79 is fine compared to the rest of the industry. UNP outperforms 78.38% 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 has a Debt to FCF ratio of 5.69. This is in the better half of the industry: UNP outperforms 70.27% 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.
UNP has a worse Debt to Equity ratio (1.79) than 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 3.79 |
ROIC/WACC1.48
WACC8.04%
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.
The Current ratio of UNP (0.77) is worse than 72.97% of its industry peers.
UNP has a Quick 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 Quick ratio of 0.63 is on the low side compared to the rest of the industry. UNP is outperformed by 89.19% of its industry peers.
| 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%.
UNP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.63% yearly.
Looking at the last year, UNP shows a small growth in Revenue. The Revenue has grown by 0.61% in the last 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 9.58% yearly.
Based on estimates for the next years, UNP will show a small growth in Revenue. The Revenue will grow by 3.94% on average per year.
EPS Next Y6.16%
EPS Next 2Y8.36%
EPS Next 3Y9.01%
EPS Next 5Y9.58%
Revenue Next Year0.95%
Revenue Next 2Y2.4%
Revenue Next 3Y3.12%
Revenue Next 5Y3.94%
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
The Price/Earnings ratio is 21.14, which indicates a rather expensive current valuation of UNP.
70.27% 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 27.55. UNP is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.80, which indicates a rather expensive current valuation of UNP.
67.57% of the companies in the same industry are more expensive than UNP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of UNP to the average of the S&P500 Index (24.00), we can say UNP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.14 | ||
| Fwd PE | 18.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as UNP.
81.08% of the companies in the same industry are more expensive than UNP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.26 | ||
| EV/EBITDA | 14.17 |
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)3.43
PEG (5Y)3.75
EPS Next 2Y8.36%
EPS Next 3Y9.01%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.40%.
Compared to an average industry Dividend Yield of 1.31, UNP pays a better dividend. On top of this UNP pays more dividend than 100.00% of the companies listed in the same industry.
UNP's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
On average, the dividend of UNP grows each year by 11.21%, 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)11.21%
Div Incr Years17
Div Non Decr Years25
5.3 Sustainability
UNP pays out 48.15% of its income as dividend. 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 2Y8.36%
EPS Next 3Y9.01%
UNION PACIFIC CORP
NYSE:UNP (12/26/2024, 8:04:00 PM)
After market: 230.23 0 (0%)230.23
+0.48 (+0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners81.11%
Inst Owner Change0.52%
Ins Owners0.08%
Ins Owner Change-0.23%
Market Cap139.58B
Analysts76.47
Price Target263.4 (14.41%)
Short Float %0.95%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Dividend Growth(5Y)11.21%
DP48.15%
Div Incr Years17
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.97%
Min EPS beat(2)-1.96%
Max EPS beat(2)0.02%
EPS beat(4)3
Avg EPS beat(4)2.07%
Min EPS beat(4)-1.96%
Max EPS beat(4)5.99%
EPS beat(8)5
Avg EPS beat(8)-0.1%
EPS beat(12)8
Avg EPS beat(12)0.37%
EPS beat(16)11
Avg EPS beat(16)0.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)-1.84%
Revenue beat(4)1
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)0.74%
Revenue beat(8)1
Avg Revenue beat(8)-1.51%
Revenue beat(12)5
Avg Revenue beat(12)-0.52%
Revenue beat(16)7
Avg Revenue beat(16)-0.25%
PT rev (1m)-2%
PT rev (3m)-1.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.37%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.09%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.14 | ||
| Fwd PE | 18.8 | ||
| P/S | 5.75 | ||
| P/FCF | 25.26 | ||
| P/OCF | 15.37 | ||
| P/B | 8.42 | ||
| P/tB | 8.42 | ||
| EV/EBITDA | 14.17 |
EPS(TTM)10.89
EY4.73%
EPS(NY)12.25
Fwd EY5.32%
FCF(TTM)9.11
FCFY3.96%
OCF(TTM)14.98
OCFY6.5%
SpS40.06
BVpS27.35
TBVpS27.35
PEG (NY)3.43
PEG (5Y)3.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 40.02% | ||
| ROCE | 15.43% | ||
| ROIC | 11.93% | ||
| ROICexc | 12.11% | ||
| ROICexgc | 12.11% | ||
| OM | 39.51% | ||
| PM (TTM) | 27.33% | ||
| GM | 78.6% | ||
| FCFM | 22.75% |
ROA(3y)10.15%
ROA(5y)9.73%
ROE(3y)48.91%
ROE(5y)42.19%
ROIC(3y)12.2%
ROIC(5y)11.71%
ROICexc(3y)12.42%
ROICexc(5y)11.94%
ROICexgc(3y)12.42%
ROICexgc(5y)11.94%
ROCE(3y)15.78%
ROCE(5y)15.15%
ROICexcg growth 3Y2.35%
ROICexcg growth 5Y-1.43%
ROICexc growth 3Y2.35%
ROICexc growth 5Y-1.43%
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%
F-Score8
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 5.69 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 149.26% | ||
| Cap/Sales | 14.63% | ||
| Interest Coverage | 7.81 | ||
| Cash Conversion | 75.81% | ||
| Profit Quality | 83.25% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 3.79 |
F-Score8
WACC8.04%
ROIC/WACC1.48
Cap/Depr(3y)149.9%
Cap/Depr(5y)147.6%
Cap/Sales(3y)14.32%
Cap/Sales(5y)14.77%
Profit Quality(3y)83.44%
Profit Quality(5y)88.47%
High Growth Momentum
Growth
EPS 1Y (TTM)4.81%
EPS 3Y8.39%
EPS 5Y5.63%
EPS Q2Q%9.56%
EPS Next Y6.16%
EPS Next 2Y8.36%
EPS Next 3Y9.01%
EPS Next 5Y9.58%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y7.28%
Revenue growth 5Y1.1%
Sales Q2Q%2.52%
Revenue Next Year0.95%
Revenue Next 2Y2.4%
Revenue Next 3Y3.12%
Revenue Next 5Y3.94%
EBIT growth 1Y5.59%
EBIT growth 3Y5.05%
EBIT growth 5Y1.29%
EBIT Next Year34.42%
EBIT Next 3Y15.23%
EBIT Next 5Y11.08%
FCF growth 1Y-6.64%
FCF growth 3Y-5.26%
FCF growth 5Y-1.88%
OCF growth 1Y-5.42%
OCF growth 3Y-0.63%
OCF growth 5Y-0.72%