UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
USA - NYSE:UNP - US9078181081 - Common Stock
214.91 USD
-1.13 (-0.52%)
214.79 USD
-0.12 (-0.06%)
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. While UNP has a great profitability rating, 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.
Each year in the past 5 years UNP has been profitable.
UNP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of UNP (10.11%) is better than 90.48% of its industry peers.
The Return On Equity of UNP (42.66%) is better than 97.62% of its industry peers.
UNP has a Return On Invested Capital of 12.21%. This is amongst the best in the industry. UNP outperforms 92.86% 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 7.92%.
The last Return On Invested Capital (12.21%) for UNP is above the 3 year average (12.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 42.66% | ||
| ROIC | 12.21% |
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 28.43% is amongst the best of the industry. UNP outperforms 97.62% of its industry peers.
In the last couple of years the Profit Margin of UNP has remained more or less at the same level.
UNP has a Operating Margin of 40.33%. This is amongst the best in the industry. UNP outperforms 100.00% of its industry peers.
UNP's Operating Margin has been stable in the last couple of years.
UNP's Gross Margin of 79.89% is amongst the best of the industry. UNP outperforms 90.48% of its industry peers.
UNP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.33% | ||
| PM (TTM) | 28.43% | ||
| GM | 79.89% |
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
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.
The debt/assets ratio for UNP has been reduced compared to a year ago.
2.2 Solvency
UNP has an Altman-Z score of 3.63. This indicates that UNP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.63, UNP is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
UNP has a debt to FCF ratio of 5.24. This is a neutral value as UNP would need 5.24 years to pay back of all of its debts.
UNP's Debt to FCF ratio of 5.24 is fine compared to the rest of the industry. UNP outperforms 78.57% of its industry peers.
UNP has a Debt/Equity ratio of 1.86. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.86, UNP is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.36
WACC8.97%
2.3 Liquidity
A Current Ratio of 0.65 indicates that UNP may have some problems paying its short term obligations.
The Current ratio of UNP (0.65) is worse than 88.10% of its industry peers.
A Quick Ratio of 0.53 indicates that UNP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.53, UNP is doing worse than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
UNP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.42%.
The Earnings Per Share has been growing slightly by 5.83% on average over the past years.
UNP shows a small growth in Revenue. In the last year, the Revenue has grown by 1.06%.
The Revenue has been growing slightly by 2.24% on average over the past years.
EPS 1Y (TTM)7.42%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%10.58%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%2.45%
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 9.34% on average per year.
UNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.14% yearly.
EPS Next Y6.56%
EPS Next 2Y8.18%
EPS Next 3Y8.17%
EPS Next 5Y9.34%
Revenue Next Year1.69%
Revenue Next 2Y3.03%
Revenue Next 3Y3.39%
Revenue Next 5Y7.14%
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.
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
UNP is valuated rather expensively with a Price/Earnings ratio of 18.79.
Based on the Price/Earnings ratio, UNP is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of UNP to the average of the S&P500 Index (27.30), we can say UNP is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.49, which indicates a correct valuation of UNP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNP indicates a somewhat cheap valuation: UNP is cheaper than 76.19% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of UNP to the average of the S&P500 Index (22.73), we can say UNP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 16.49 |
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 rather cheap valuation: UNP is cheaper than 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.36 | ||
| EV/EBITDA | 12.98 |
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)2.86
PEG (5Y)3.22
EPS Next 2Y8.18%
EPS Next 3Y8.17%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.56%.
UNP's Dividend Yield is rather good when compared to the industry average which is at 1.58. UNP pays more dividend than 95.24% of the companies in the same industry.
UNP's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
The dividend of UNP is nicely growing with an annual growth rate of 7.62%!
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
46.49% 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.
DP46.49%
EPS Next 2Y8.18%
EPS Next 3Y8.17%
214.91
-1.13 (-0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners83.42%
Inst Owner Change-1.39%
Ins Owners0.09%
Ins Owner Change-0.03%
Market Cap127.45B
Analysts75.76
Price Target261.38 (21.62%)
Short Float %1.78%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend5.29
Dividend Growth(5Y)7.62%
DP46.49%
Div Incr Years18
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.15%
Min EPS beat(2)-2.76%
Max EPS beat(2)3.06%
EPS beat(4)2
Avg EPS beat(4)0.9%
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)0.67%
EPS beat(16)11
Avg EPS beat(16)0.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)-1.16%
Revenue beat(4)0
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)-1.16%
Revenue beat(8)1
Avg Revenue beat(8)-1.16%
Revenue beat(12)2
Avg Revenue beat(12)-1.25%
Revenue beat(16)6
Avg Revenue beat(16)-0.55%
PT rev (1m)-0.09%
PT rev (3m)4.79%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)1.75%
EPS NY rev (1m)1.69%
EPS NY rev (3m)2.19%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 16.49 | ||
| P/S | 5.22 | ||
| P/FCF | 20.36 | ||
| P/OCF | 12.93 | ||
| P/B | 7.84 | ||
| P/tB | 7.84 | ||
| EV/EBITDA | 12.98 |
EPS(TTM)11.44
EY5.32%
EPS(NY)13.04
Fwd EY6.07%
FCF(TTM)10.56
FCFY4.91%
OCF(TTM)16.62
OCFY7.73%
SpS41.13
BVpS27.41
TBVpS27.41
PEG (NY)2.86
PEG (5Y)3.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.11% | ||
| ROE | 42.66% | ||
| ROCE | 15.83% | ||
| ROIC | 12.21% | ||
| ROICexc | 12.42% | ||
| ROICexgc | 12.42% | ||
| OM | 40.33% | ||
| PM (TTM) | 28.43% | ||
| GM | 79.89% | ||
| FCFM | 25.67% |
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 | 1.86 | ||
| Debt/FCF | 5.24 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 147.88% | ||
| Cap/Sales | 14.74% | ||
| Interest Coverage | 7.97 | ||
| Cash Conversion | 80.34% | ||
| Profit Quality | 90.28% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 3.63 |
F-Score7
WACC8.97%
ROIC/WACC1.36
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)7.42%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%10.58%
EPS Next Y6.56%
EPS Next 2Y8.18%
EPS Next 3Y8.17%
EPS Next 5Y9.34%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%2.45%
Revenue Next Year1.69%
Revenue Next 2Y3.03%
Revenue Next 3Y3.39%
Revenue Next 5Y7.14%
EBIT growth 1Y5.14%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year30.85%
EBIT Next 3Y13.62%
EBIT Next 5Y14.53%
FCF growth 1Y14.44%
FCF growth 3Y-1.12%
FCF growth 5Y2.71%
OCF growth 1Y8.87%
OCF growth 3Y1.15%
OCF growth 5Y1.66%