UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNP - US9078181081 - Common Stock
235.31 USD
-1.98 (-0.83%)
235.31 USD
0 (0%)
Overall UNP gets a fundamental rating of 6 out of 10. We evaluated UNP against 43 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 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.
Each year in the past 5 years UNP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.27%, UNP belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
The Return On Equity of UNP (40.75%) is better than 97.67% of its industry peers.
The Return On Invested Capital of UNP (12.12%) is better than 93.02% of its industry peers.
UNP had an Average Return On Invested Capital over the past 3 years of 12.01%. This is significantly above the industry average of 6.83%.
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's Profit Margin of 28.73% is amongst the best of the industry. UNP outperforms 95.35% of its industry peers.
UNP's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 40.62%, UNP belongs to the best 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.
The Gross Margin of UNP (79.83%) is better than 90.70% 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.
Compared to 1 year ago, UNP has less shares outstanding
UNP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for UNP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.84 indicates that UNP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.84, UNP is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
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 has a Debt to FCF ratio of 5.29. This is in the better half of the industry: UNP outperforms 79.07% of its industry peers.
A Debt/Equity ratio of 1.75 is on the high side and indicates that UNP has dependencies on debt financing.
UNP has a Debt to Equity ratio of 1.75. This is in the lower half of the industry: UNP underperforms 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.29 | ||
| Altman-Z | 3.84 |
ROIC/WACC1.2
WACC10.09%
2.3 Liquidity
A Current Ratio of 0.75 indicates that UNP may have some problems paying its short term obligations.
UNP's Current ratio of 0.75 is on the low side compared to the rest of the industry. UNP is outperformed by 81.40% of its industry peers.
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.
UNP has a Quick ratio of 0.60. This is amonst the worse of the industry: UNP underperforms 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.08% 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.
Looking at the last year, UNP shows a small growth in Revenue. The Revenue has grown by 1.06% in the last 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)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
UNP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.05% yearly.
The Revenue is expected to grow by 7.82% on average over the next years.
EPS Next Y6.52%
EPS Next 2Y7.11%
EPS Next 3Y7.54%
EPS Next 5Y9.05%
Revenue Next Year1.42%
Revenue Next 2Y2.59%
Revenue Next 3Y3.36%
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.
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
With a Price/Earnings ratio of 19.99, UNP is valued on the expensive side.
Based on the Price/Earnings ratio, UNP is valued a bit cheaper than 76.74% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.49, UNP is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.41 indicates a rather expensive valuation of UNP.
76.74% 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 23.69. UNP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 18.41 |
4.2 Price Multiples
UNP's Enterprise Value to EBITDA is on the same level as the industry average.
UNP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UNP is cheaper than 88.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.21 | ||
| EV/EBITDA | 13.74 |
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)3.07
PEG (5Y)3.43
EPS Next 2Y7.11%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, UNP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.60, UNP pays a better dividend. On top of this UNP pays more dividend than 93.02% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, UNP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
On average, the dividend of UNP grows each year by 7.62%, 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)7.62%
Div Incr Years18
Div Non Decr Years26
5.3 Sustainability
45.77% 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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP45.77%
EPS Next 2Y7.11%
EPS Next 3Y7.54%
235.31
-1.98 (-0.83%)
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 Cap139.58B
Revenue(TTM)24.55B
Net Income(TTM)7.05B
Analysts80
Price Target266.4 (13.21%)
Short Float %3.51%
Short Ratio5.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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)0.14%
PT rev (3m)1.75%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-3.1%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 18.41 | ||
| P/S | 5.69 | ||
| P/FCF | 23.21 | ||
| P/OCF | 14.35 | ||
| P/B | 8.07 | ||
| P/tB | 8.07 | ||
| EV/EBITDA | 13.74 |
EPS(TTM)11.77
EY5%
EPS(NY)12.78
Fwd EY5.43%
FCF(TTM)10.14
FCFY4.31%
OCF(TTM)16.4
OCFY6.97%
SpS41.38
BVpS29.17
TBVpS29.17
PEG (NY)3.07
PEG (5Y)3.43
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 | 3.84 |
F-Score6
WACC10.09%
ROIC/WACC1.2
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 Y6.52%
EPS Next 2Y7.11%
EPS Next 3Y7.54%
EPS Next 5Y9.05%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%2.51%
Revenue Next Year1.42%
Revenue Next 2Y2.59%
Revenue Next 3Y3.36%
Revenue Next 5Y7.82%
EBIT growth 1Y3.91%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year30.26%
EBIT Next 3Y13.77%
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 6.52% in the next year.