UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
USA - NYSE:UNP - US9078181081 - Common Stock
220.37 USD
+1.54 (+0.7%)
220.37 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to UNP. UNP was compared to 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. 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.
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 10.27%, UNP belongs to the best 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.
UNP has a better Return On Invested Capital (12.12%) 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 above the industry average of 7.72%.
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
The Profit Margin of UNP (28.73%) is better than 97.67% of its industry peers.
UNP's Profit Margin has been stable in the last couple of years.
The Operating Margin of UNP (40.62%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of UNP has remained more or less at the same level.
The Gross Margin of UNP (79.83%) is better than 90.70% of its industry peers.
UNP's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for UNP has been reduced compared to 1 year ago.
Compared to 5 years ago, UNP has less shares outstanding
UNP has a better debt/assets ratio than last year.
2.2 Solvency
UNP has an Altman-Z score of 3.74. 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 3.74, UNP is in the better half of the industry, outperforming 79.07% 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 better Debt to FCF ratio (5.29) than 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's Debt to Equity ratio of 1.75 is on the low side compared to the rest of the industry. UNP is outperformed by 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | 5.29 | ||
| Altman-Z | 3.74 |
ROIC/WACC1.36
WACC8.91%
2.3 Liquidity
A Current Ratio of 0.75 indicates that UNP may have some problems paying its short term obligations.
The Current ratio of UNP (0.75) is worse than 86.05% of its industry peers.
A Quick Ratio of 0.60 indicates that UNP may have some problems paying its short term obligations.
The Quick ratio of UNP (0.60) is worse than 88.37% 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.
The Revenue has been growing slightly by 1.06% in the past year.
The Revenue has been growing slightly by 2.24% on average over the past years.
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 9.32% yearly.
The Revenue is expected to grow by 7.09% on average over the next years.
EPS Next Y6.31%
EPS Next 2Y7.42%
EPS Next 3Y7.59%
EPS Next 5Y9.32%
Revenue Next Year1.74%
Revenue Next 2Y2.9%
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
Based on the Price/Earnings ratio of 18.72, the valuation of UNP can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of UNP indicates a rather cheap valuation: UNP is cheaper than 83.72% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of UNP to the average of the S&P500 Index (26.11), we can say UNP is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.14, the valuation of UNP can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNP indicates a somewhat cheap valuation: UNP is cheaper than 76.74% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, UNP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 17.14 |
4.2 Price Multiples
UNP's Enterprise Value to EBITDA ratio is in line with the industry average.
UNP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UNP is cheaper than 93.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.74 | ||
| EV/EBITDA | 13.02 |
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)2.97
PEG (5Y)3.21
EPS Next 2Y7.42%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.71, UNP pays a better dividend. On top of this UNP pays more dividend than 95.35% of the companies listed in the same industry.
UNP's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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 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.
The dividend of UNP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP45.77%
EPS Next 2Y7.42%
EPS Next 3Y7.59%
220.37
+1.54 (+0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners82.5%
Inst Owner Change-1.1%
Ins Owners0.09%
Ins Owner Change0.01%
Market Cap130.71B
Revenue(TTM)24.55B
Net Income(TTM)7.05B
Analysts77.58
Price Target266.03 (20.72%)
Short Float %3.1%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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)1.78%
PT rev (3m)4.17%
EPS NQ rev (1m)-2.71%
EPS NQ rev (3m)-2.63%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)1.45%
Revenue NQ rev (1m)-1.43%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 17.14 | ||
| P/S | 5.32 | ||
| P/FCF | 21.74 | ||
| P/OCF | 13.44 | ||
| P/B | 7.55 | ||
| P/tB | 7.55 | ||
| EV/EBITDA | 13.02 |
EPS(TTM)11.77
EY5.34%
EPS(NY)12.85
Fwd EY5.83%
FCF(TTM)10.14
FCFY4.6%
OCF(TTM)16.4
OCFY7.44%
SpS41.38
BVpS29.17
TBVpS29.17
PEG (NY)2.97
PEG (5Y)3.21
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 | 3.74 |
F-Score6
WACC8.91%
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)8.08%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%12%
EPS Next Y6.31%
EPS Next 2Y7.42%
EPS Next 3Y7.59%
EPS Next 5Y9.32%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%2.51%
Revenue Next Year1.74%
Revenue Next 2Y2.9%
Revenue Next 3Y3.41%
Revenue Next 5Y7.09%
EBIT growth 1Y3.91%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year30.89%
EBIT Next 3Y13.67%
EBIT Next 5Y14.8%
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 6.31% in the next year.