UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
NYSE:UNP - New York Stock Exchange, Inc. - US9078181081 - Common Stock - Currency: USD
Overall UNP gets a fundamental rating of 6 out of 10. We evaluated UNP against 40 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 decent growth rate and is not valued too expensively. Finally 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.
Each year in the past 5 years UNP has been profitable.
In the past 5 years UNP always reported a positive cash flow from operatings.
1.2 Ratios
UNP's Return On Assets of 10.11% is amongst the best of the industry. UNP outperforms 85.00% of its industry peers.
UNP has a Return On Equity of 42.66%. This is amongst the best in the industry. UNP outperforms 97.50% of its industry peers.
UNP has a Return On Invested Capital of 12.21%. This is amongst the best in the industry. UNP outperforms 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UNP is above the industry average of 8.55%.
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
The Profit Margin of UNP (28.43%) is better than 97.50% 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 better Operating Margin (40.33%) than 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 90.00% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UNP is still creating some value.
Compared to 1 year ago, UNP has less shares outstanding
UNP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, UNP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.66 indicates that UNP is not in any danger for bankruptcy at the moment.
UNP has a better Altman-Z score (3.66) than 77.50% 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.
UNP's Debt to FCF ratio of 5.24 is fine compared to the rest of the industry. UNP outperforms 75.00% 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.
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 | 3.66 |
ROIC/WACC1.44
WACC8.46%
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.
The Current ratio of UNP (0.65) is worse than 90.00% 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 95.00% of the companies in the same industry.
| 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.
UNP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.83% yearly.
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
The Earnings Per Share is expected to grow by 9.47% on average over the next years. This is quite good.
Based on estimates for the next years, UNP will show a small growth in Revenue. The Revenue will grow by 3.97% on average per year.
EPS Next Y4.79%
EPS Next 2Y7.87%
EPS Next 3Y8.33%
EPS Next 5Y9.47%
Revenue Next Year1.65%
Revenue Next 2Y2.99%
Revenue Next 3Y3.35%
Revenue Next 5Y3.97%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
UNP is valuated rather expensively with a Price/Earnings ratio of 19.41.
Compared to the rest of the industry, the Price/Earnings ratio of UNP indicates a somewhat cheap valuation: UNP is cheaper than 72.50% of the companies listed in the same industry.
UNP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.82.
UNP is valuated rather expensively with a Price/Forward Earnings ratio of 17.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNP indicates a somewhat cheap valuation: UNP is cheaper than 75.00% of the companies listed in the same industry.
UNP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 17.13 |
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.
90.00% 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 | 21.04 | ||
| EV/EBITDA | 13.19 |
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)4.05
PEG (5Y)3.33
EPS Next 2Y7.87%
EPS Next 3Y8.33%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.49%.
Compared to an average industry Dividend Yield of 1.58, UNP pays a better dividend. On top of this UNP pays more dividend than 97.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, UNP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
5.2 History
On average, the dividend of UNP grows each year by 7.62%, which is quite nice.
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
UNP pays out 46.49% of its income as dividend. 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 2Y7.87%
EPS Next 3Y8.33%
NYSE:UNP (8/4/2025, 3:37:04 PM)
222.105
+2.7 (+1.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners83.09%
Inst Owner Change-1.03%
Ins Owners0.09%
Ins Owner Change3.7%
Market Cap131.72B
Analysts76.57
Price Target255.39 (14.99%)
Short Float %0.99%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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)2.21%
PT rev (3m)-1.51%
EPS NQ rev (1m)1.71%
EPS NQ rev (3m)-2.53%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-2.28%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 17.13 | ||
| P/S | 5.4 | ||
| P/FCF | 21.04 | ||
| P/OCF | 13.36 | ||
| P/B | 8.1 | ||
| P/tB | 8.1 | ||
| EV/EBITDA | 13.19 |
EPS(TTM)11.44
EY5.15%
EPS(NY)12.96
Fwd EY5.84%
FCF(TTM)10.56
FCFY4.75%
OCF(TTM)16.62
OCFY7.48%
SpS41.13
BVpS27.41
TBVpS27.41
PEG (NY)4.05
PEG (5Y)3.33
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 | 3.66 |
F-Score7
WACC8.46%
ROIC/WACC1.44
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 Y4.79%
EPS Next 2Y7.87%
EPS Next 3Y8.33%
EPS Next 5Y9.47%
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 3Y3.35%
Revenue Next 5Y3.97%
EBIT growth 1Y5.14%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year30.01%
EBIT Next 3Y13.62%
EBIT Next 5Y10.18%
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%