UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNP - US9078181081 - Common Stock
226.22 USD
+5.01 (+2.26%)
226.22 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. 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
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
UNP has a Return On Assets of 10.27%. This is amongst the best in the industry. UNP outperforms 93.02% of its industry peers.
Looking at the Return On Equity, with a value of 40.75%, UNP belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
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 above the industry average of 7.13%.
The last Return On Invested Capital (12.12%) for UNP is above the 3 year average (12.01%), which is a sign of increasing profitability.
| 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 95.35% of its industry peers.
UNP's Profit Margin has been stable in the last couple of years.
UNP's Operating Margin of 40.62% is amongst the best of the industry. UNP outperforms 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.
UNP has a Gross Margin of 79.83%. This is amongst the best in the industry. UNP outperforms 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.
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
An Altman-Z score of 3.74 indicates that UNP is not in any danger for bankruptcy at the moment.
UNP has a better Altman-Z score (3.74) than 76.74% of its industry peers.
UNP has a debt to FCF ratio of 5.29. This is a neutral value as UNP would need 5.29 years to pay back of 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'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/WACC1.13
WACC10.72%
2.3 Liquidity
UNP has a Current 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.
Looking at the Current ratio, with a value of 0.75, UNP is doing worse than 79.07% of the companies in the same industry.
A Quick Ratio of 0.60 indicates that UNP may have some problems paying its short term obligations.
With a Quick ratio value of 0.60, UNP is not doing good in the industry: 86.05% of the companies in the same industry are doing better.
| 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.
UNP shows a small growth in Revenue. In the last year, the Revenue has grown by 1.06%.
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
Based on estimates for the next years, UNP will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.21% on average per year.
Based on estimates for the next years, UNP will show a small growth in Revenue. The Revenue will grow by 7.88% on average per year.
EPS Next Y6.48%
EPS Next 2Y7.03%
EPS Next 3Y7.33%
EPS Next 5Y9.21%
Revenue Next Year1.4%
Revenue Next 2Y2.48%
Revenue Next 3Y3.19%
Revenue Next 5Y7.88%
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 19.22, UNP is valued on the expensive side.
76.74% of the companies in the same industry are more expensive than UNP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of UNP to the average of the S&P500 Index (25.45), we can say UNP is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.73, 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.
The average S&P500 Price/Forward Earnings ratio is at 34.46. UNP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 17.73 |
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 86.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.31 | ||
| EV/EBITDA | 13.06 |
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)3.29
EPS Next 2Y7.03%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.50%.
UNP's Dividend Yield is rather good when compared to the industry average which is at 1.74. UNP pays more dividend than 93.02% of the companies in the same industry.
UNP's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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 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
UNP pays out 45.77% 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.
DP45.77%
EPS Next 2Y7.03%
EPS Next 3Y7.33%
226.22
+5.01 (+2.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners82.5%
Inst Owner Change3.94%
Ins Owners0.09%
Ins Owner Change0.01%
Market Cap134.18B
Revenue(TTM)24.55B
Net Income(TTM)7.05B
Analysts78.75
Price Target266.83 (17.95%)
Short Float %3.36%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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)1.23%
PT rev (3m)1.68%
EPS NQ rev (1m)-2.74%
EPS NQ rev (3m)-2.96%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)1.61%
Revenue NQ rev (1m)-1.49%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 17.73 | ||
| P/S | 5.47 | ||
| P/FCF | 22.31 | ||
| P/OCF | 13.79 | ||
| P/B | 7.75 | ||
| P/tB | 7.75 | ||
| EV/EBITDA | 13.06 |
EPS(TTM)11.77
EY5.2%
EPS(NY)12.76
Fwd EY5.64%
FCF(TTM)10.14
FCFY4.48%
OCF(TTM)16.4
OCFY7.25%
SpS41.38
BVpS29.17
TBVpS29.17
PEG (NY)2.97
PEG (5Y)3.29
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
WACC10.72%
ROIC/WACC1.13
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 Y6.48%
EPS Next 2Y7.03%
EPS Next 3Y7.33%
EPS Next 5Y9.21%
Revenue 1Y (TTM)1.06%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%2.51%
Revenue Next Year1.4%
Revenue Next 2Y2.48%
Revenue Next 3Y3.19%
Revenue Next 5Y7.88%
EBIT growth 1Y3.91%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year30.89%
EBIT Next 3Y13.67%
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 6.48% in the next year.