UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
NYSE:UNP - US9078181081 - Common Stock
227.85 USD
+2.55 (+1.13%)
228.55 USD
+0.7 (+0.31%)
We assign a fundamental rating of 6 out of 10 to UNP. UNP was compared to 40 industry peers in the Ground Transportation industry. While UNP belongs to the best of the industry regarding profitability, 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
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.
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 10.11%, UNP belongs to the top of the industry, outperforming 87.50% 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 97.50% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.21%, UNP belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
UNP had an Average Return On Invested Capital over the past 3 years of 12.01%. This is above the industry average of 8.42%.
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
Looking at the Profit Margin, with a value of 28.43%, UNP belongs to the top of the industry, outperforming 97.50% 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.
The Operating Margin of UNP (40.33%) is better than 100.00% of its industry peers.
UNP's Operating Margin has been stable in the last couple of years.
The Gross Margin of UNP (79.89%) is better than 90.00% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UNP is creating some value.
Compared to 1 year ago, UNP has less shares outstanding
Compared to 5 years ago, UNP has less shares outstanding
The debt/assets ratio for UNP has been reduced compared to a year ago.
2.2 Solvency
UNP has an Altman-Z score of 3.72. This indicates that UNP is financially healthy and has little risk of bankruptcy at the moment.
UNP's Altman-Z score of 3.72 is fine compared to the rest of the industry. UNP outperforms 80.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 5.24, UNP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 1.86 is on the high side and indicates that UNP has dependencies on debt financing.
UNP has a worse Debt to Equity ratio (1.86) than 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 3.72 |
ROIC/WACC1.33
WACC9.16%
2.3 Liquidity
UNP has a Current Ratio of 0.65. This is a bad value and indicates that UNP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.65, UNP is not doing good in the industry: 92.50% of the companies in the same industry are doing better.
UNP has a Quick Ratio of 0.65. 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 Quick ratio of UNP (0.53) is worse than 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.42% over the past year.
The Earnings Per Share has been growing slightly by 5.83% on average over the past years.
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)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
UNP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.34% yearly.
UNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.13% yearly.
EPS Next Y6.56%
EPS Next 2Y8.18%
EPS Next 3Y8.17%
EPS Next 5Y9.34%
Revenue Next Year1.65%
Revenue Next 2Y2.99%
Revenue Next 3Y3.32%
Revenue Next 5Y7.13%
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 19.92, UNP is valued on the expensive side.
UNP's Price/Earnings ratio is a bit cheaper when compared to the industry. UNP is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, UNP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.48, UNP is valued on the expensive side.
Based on the Price/Forward Earnings ratio, UNP is valued a bit cheaper than 75.00% of the companies in the same industry.
UNP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 17.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UNP is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNP indicates a rather cheap valuation: UNP is cheaper than 92.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.58 | ||
| EV/EBITDA | 13.6 |
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)3.04
PEG (5Y)3.41
EPS Next 2Y8.18%
EPS Next 3Y8.17%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.45%. 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 1.59. UNP pays more dividend than 95.00% of the companies in the same industry.
UNP's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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.
The dividend of UNP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP46.49%
EPS Next 2Y8.18%
EPS Next 3Y8.17%
227.85
+2.55 (+1.13%)
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-0.02%
Market Cap135.12B
Analysts76.97
Price Target261.5 (14.77%)
Short Float %1.54%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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)2.39%
PT rev (3m)4.67%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)1.69%
EPS NY rev (3m)2.19%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 17.48 | ||
| P/S | 5.54 | ||
| P/FCF | 21.58 | ||
| P/OCF | 13.71 | ||
| P/B | 8.31 | ||
| P/tB | 8.31 | ||
| EV/EBITDA | 13.6 |
EPS(TTM)11.44
EY5.02%
EPS(NY)13.04
Fwd EY5.72%
FCF(TTM)10.56
FCFY4.63%
OCF(TTM)16.62
OCFY7.29%
SpS41.13
BVpS27.41
TBVpS27.41
PEG (NY)3.04
PEG (5Y)3.41
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 | 3.72 |
F-Score7
WACC9.16%
ROIC/WACC1.33
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 Year1.65%
Revenue Next 2Y2.99%
Revenue Next 3Y3.32%
Revenue Next 5Y7.13%
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%