UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
USA - NYSE:UNP - US9078181081 - Common Stock
236.8 USD
+2.28 (+0.97%)
236.8 USD
0 (0%)
Overall UNP gets a fundamental rating of 6 out of 10. We evaluated UNP against 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 has a decent growth rate and is not valued too expensively. UNP also has an excellent dividend rating.
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.
UNP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.11%, UNP belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
With an excellent Return On Equity value of 42.66%, UNP belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
UNP's Return On Invested Capital of 12.21% is amongst the best of 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 7.77%.
The 3 year average ROIC (12.01%) for UNP is below the current ROIC(12.21%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 28.43%, UNP belongs to the top of the industry, outperforming 97.62% 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.
With an excellent Operating Margin value of 40.33%, 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.
UNP has a better Gross Margin (79.89%) 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 | 40.33% | ||
| 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
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.
The debt/assets ratio for UNP has been reduced compared to a year ago.
2.2 Solvency
UNP has an Altman-Z score of 3.78. This indicates that UNP is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.78, UNP is doing good in the industry, outperforming 76.19% of the companies in the same industry.
The Debt to FCF ratio of UNP is 5.24, which is a neutral value as it means it would take UNP, 5.24 years of fcf income to pay off all of its debts.
UNP has a better Debt to FCF ratio (5.24) than 78.57% of its industry peers.
A Debt/Equity ratio of 1.86 is on the high side and indicates that UNP has dependencies on debt financing.
The Debt to Equity ratio of UNP (1.86) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 3.78 |
ROIC/WACC1.36
WACC8.96%
2.3 Liquidity
A Current Ratio of 0.65 indicates that UNP may have some problems paying its short term obligations.
With a Current ratio value of 0.65, UNP is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
A Quick Ratio of 0.53 indicates that UNP may have some problems paying its short term obligations.
UNP's Quick ratio of 0.53 is on the low side compared to the rest of the industry. UNP is outperformed by 92.86% of its industry peers.
| 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%.
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)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
The Earnings Per Share is expected to grow by 9.32% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.09% on average over the next years.
EPS Next Y6.6%
EPS Next 2Y8.02%
EPS Next 3Y8.03%
EPS Next 5Y9.32%
Revenue Next Year1.73%
Revenue Next 2Y3%
Revenue Next 3Y3.41%
Revenue Next 5Y7.09%
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
With a Price/Earnings ratio of 20.70, UNP is valued on the expensive side.
Based on the Price/Earnings ratio, UNP is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
UNP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
A Price/Forward Earnings ratio of 18.22 indicates a rather expensive valuation of UNP.
Based on the Price/Forward Earnings ratio, UNP is valued a bit cheaper than 71.43% of the companies in the same industry.
UNP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 18.22 |
4.2 Price Multiples
UNP's Enterprise Value to EBITDA is on the same level as the industry average.
90.48% 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 | 22.43 | ||
| EV/EBITDA | 14.04 |
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)3.13
PEG (5Y)3.55
EPS Next 2Y8.02%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.35%. Purely for dividend investing, there may be better candidates out there.
UNP's Dividend Yield is rather good when compared to the industry average which is at 1.66. 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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 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
UNP pays out 46.49% of its income as dividend. 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 2Y8.02%
EPS Next 3Y8.03%
236.8
+2.28 (+0.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners82.5%
Inst Owner Change-1.38%
Ins Owners0.09%
Ins Owner Change-0.03%
Market Cap140.43B
Analysts77.58
Price Target262.81 (10.98%)
Short Float %2.45%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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)0.5%
PT rev (3m)5.18%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)1.77%
EPS NY rev (1m)0.04%
EPS NY rev (3m)2.21%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 18.22 | ||
| P/S | 5.76 | ||
| P/FCF | 22.43 | ||
| P/OCF | 14.25 | ||
| P/B | 8.64 | ||
| P/tB | 8.64 | ||
| EV/EBITDA | 14.04 |
EPS(TTM)11.44
EY4.83%
EPS(NY)13
Fwd EY5.49%
FCF(TTM)10.56
FCFY4.46%
OCF(TTM)16.62
OCFY7.02%
SpS41.13
BVpS27.41
TBVpS27.41
PEG (NY)3.13
PEG (5Y)3.55
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 | 3.78 |
F-Score7
WACC8.96%
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 Y6.6%
EPS Next 2Y8.02%
EPS Next 3Y8.03%
EPS Next 5Y9.32%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%2.45%
Revenue Next Year1.73%
Revenue Next 2Y3%
Revenue Next 3Y3.41%
Revenue Next 5Y7.09%
EBIT growth 1Y5.14%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year30.89%
EBIT Next 3Y13.67%
EBIT Next 5Y14.8%
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%