UNION PACIFIC CORP (UNP) Stock Fundamental Analysis
NYSE:UNP - New York Stock Exchange, Inc. - US9078181081 - Common Stock - Currency: USD
Taking everything into account, UNP scores 6 out of 10 in our fundamental rating. UNP was compared to 41 industry peers in the Ground Transportation industry. UNP scores excellent on profitability, but there are some minor concerns on its financial health. UNP is not valued too expensively and it also shows a decent growth rate. 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.
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 9.83%. This is amongst the best in the industry. UNP outperforms 85.37% of its industry peers.
Looking at the Return On Equity, with a value of 41.97%, UNP belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
UNP has a better Return On Invested Capital (12.03%) than 90.24% 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 8.12%.
The last Return On Invested Capital (12.03%) for UNP is above the 3 year average (12.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.83% | ||
| ROE | 41.97% | ||
| ROIC | 12.03% |
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
UNP's Profit Margin of 27.77% is amongst the best of the industry. UNP outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of UNP has remained more or less at the same level.
Looking at the Operating Margin, with a value of 40.06%, UNP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 79.56%. This is amongst the best in the industry. UNP outperforms 90.24% 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 | 40.06% | ||
| PM (TTM) | 27.77% | ||
| GM | 79.56% |
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.
The number of shares outstanding for UNP has been reduced compared to 1 year ago.
The number of shares outstanding for UNP has been reduced compared to 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 3.63. 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 3.63, UNP belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
The Debt to FCF ratio of UNP is 5.59, which is a neutral value as it means it would take UNP, 5.59 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.59, UNP is doing good in the industry, outperforming 73.17% of the companies in the same industry.
A Debt/Equity ratio of 1.91 is on the high side and indicates that UNP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.91, UNP is doing worse than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.42
WACC8.44%
2.3 Liquidity
UNP has a Current Ratio of 0.73. 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 0.73, UNP is doing worse than 82.93% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that UNP may have some problems paying its short term obligations.
With a Quick ratio value of 0.61, UNP is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
UNP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.70%.
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 0.63%.
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)6.7%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%0.37%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%-0.07%
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 9.43% yearly.
The Revenue is expected to grow by 4.63% on average over the next years.
EPS Next Y7.24%
EPS Next 2Y9.14%
EPS Next 3Y9.64%
EPS Next 5Y9.43%
Revenue Next Year2.63%
Revenue Next 2Y3.72%
Revenue Next 3Y4.13%
Revenue Next 5Y4.63%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.20 indicates a rather expensive valuation of UNP.
Compared to the rest of the industry, the Price/Earnings ratio of UNP indicates a somewhat cheap valuation: UNP is cheaper than 73.17% 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 27.85.
A Price/Forward Earnings ratio of 16.13 indicates a correct valuation of UNP.
65.85% of the companies in the same industry are more expensive than UNP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.77. UNP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.2 | ||
| Fwd PE | 16.13 |
4.2 Price Multiples
UNP's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, UNP is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.85 | ||
| EV/EBITDA | 13.25 |
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)2.65
PEG (5Y)3.29
EPS Next 2Y9.14%
EPS Next 3Y9.64%
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 1.69. UNP pays more dividend than 95.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, UNP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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 Years17
Div Non Decr Years25
5.3 Sustainability
47.86% 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.
DP47.86%
EPS Next 2Y9.14%
EPS Next 3Y9.64%
214.08
-1.58 (-0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners82.2%
Inst Owner Change0.42%
Ins Owners0.09%
Ins Owner Change3.69%
Market Cap128.30B
Analysts76.57
Price Target259.32 (21.13%)
Short Float %0.98%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend5.29
Dividend Growth(5Y)7.62%
DP47.86%
Div Incr Years17
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.27%
Min EPS beat(2)-2.72%
Max EPS beat(2)5.25%
EPS beat(4)2
Avg EPS beat(4)0.15%
Min EPS beat(4)-2.72%
Max EPS beat(4)5.25%
EPS beat(8)5
Avg EPS beat(8)0.51%
EPS beat(12)8
Avg EPS beat(12)0.55%
EPS beat(16)11
Avg EPS beat(16)1%
Revenue beat(2)0
Avg Revenue beat(2)-1.68%
Min Revenue beat(2)-2.03%
Max Revenue beat(2)-1.34%
Revenue beat(4)0
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-2.03%
Max Revenue beat(4)-1.34%
Revenue beat(8)1
Avg Revenue beat(8)-1.48%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.36%
PT rev (1m)-3.65%
PT rev (3m)-1.65%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.2 | ||
| Fwd PE | 16.13 | ||
| P/S | 5.29 | ||
| P/FCF | 21.85 | ||
| P/OCF | 13.6 | ||
| P/B | 8 | ||
| P/tB | 8 | ||
| EV/EBITDA | 13.25 |
EPS(TTM)11.15
EY5.21%
EPS(NY)13.27
Fwd EY6.2%
FCF(TTM)9.8
FCFY4.58%
OCF(TTM)15.74
OCFY7.35%
SpS40.46
BVpS26.76
TBVpS26.76
PEG (NY)2.65
PEG (5Y)3.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.83% | ||
| ROE | 41.97% | ||
| ROCE | 15.6% | ||
| ROIC | 12.03% | ||
| ROICexc | 12.3% | ||
| ROICexgc | 12.3% | ||
| OM | 40.06% | ||
| PM (TTM) | 27.77% | ||
| GM | 79.56% | ||
| FCFM | 24.22% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | 147.51% | ||
| Cap/Sales | 14.69% | ||
| Interest Coverage | 7.86 | ||
| Cash Conversion | 77.8% | ||
| Profit Quality | 87.24% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 3.63 |
F-Score7
WACC8.44%
ROIC/WACC1.42
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)6.7%
EPS 3Y3.84%
EPS 5Y5.83%
EPS Q2Q%0.37%
EPS Next Y7.24%
EPS Next 2Y9.14%
EPS Next 3Y9.64%
EPS Next 5Y9.43%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y3.61%
Revenue growth 5Y2.24%
Sales Q2Q%-0.07%
Revenue Next Year2.63%
Revenue Next 2Y3.72%
Revenue Next 3Y4.13%
Revenue Next 5Y4.63%
EBIT growth 1Y6.03%
EBIT growth 3Y1.32%
EBIT growth 5Y2.57%
EBIT Next Year33.29%
EBIT Next 3Y14.56%
EBIT Next 5Y10.81%
FCF growth 1Y8.32%
FCF growth 3Y-1.12%
FCF growth 5Y2.71%
OCF growth 1Y5.22%
OCF growth 3Y1.15%
OCF growth 5Y1.66%