UNION PACIFIC CORP (UNP)
US9078181081 - Common Stock
Overall UNP gets a fundamental rating of 5 out of 10. We evaluated UNP against 36 industry peers in the Ground Transportation industry. While UNP has a great profitability rating, there are some minor concerns on its financial health. UNP has a decent growth rate and is not valued too expensively. UNP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
UNP had positive earnings in the past year.
In the past year UNP had a positive cash flow from operations.
In the past 5 years UNP has always been profitable.
UNP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.50%, UNP belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
UNP has a better Return On Equity (43.14%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 11.32%, UNP belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
UNP had an Average Return On Invested Capital over the past 3 years of 12.20%. This is above the industry average of 7.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.5% | ||
| ROE | 43.14% | ||
| ROIC | 11.32% |
ROA(3y)10.15%
ROA(5y)9.73%
ROE(3y)48.91%
ROE(5y)42.19%
ROIC(3y)12.2%
ROIC(5y)11.71%
1.3 Margins
UNP's Profit Margin of 26.45% is amongst the best of the industry. UNP outperforms 91.67% 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's Operating Margin of 37.65% is amongst the best of the industry. UNP outperforms 97.22% of its industry peers.
UNP's Operating Margin has been stable in the last couple of years.
UNP has a better Gross Margin (77.17%) than 86.11% of its industry peers.
UNP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.65% | ||
| PM (TTM) | 26.45% | ||
| GM | 77.17% |
OM growth 3Y-2.08%
OM growth 5Y0.19%
PM growth 3Y-1.15%
PM growth 5Y0.24%
GM growth 3Y-2.57%
GM growth 5Y-0.27%
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.
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
An Altman-Z score of 3.79 indicates that UNP is not in any danger for bankruptcy at the moment.
UNP's Altman-Z score of 3.79 is fine compared to the rest of the industry. UNP outperforms 77.78% of its industry peers.
The Debt to FCF ratio of UNP is 6.83, which is on the high side as it means it would take UNP, 6.83 years of fcf income to pay off all of its debts.
UNP has a better Debt to FCF ratio (6.83) than 75.00% of its industry peers.
A Debt/Equity ratio of 2.11 is on the high side and indicates that UNP has dependencies on debt financing.
UNP has a worse Debt to Equity ratio (2.11) than 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 6.83 | ||
| Altman-Z | 3.79 |
ROIC/WACC1.34
WACC8.45%
2.3 Liquidity
UNP has a Current Ratio of 0.81. This is a bad value and indicates that UNP is not financially healthy enough and could expect problems in meeting its short term obligations.
UNP has a Current ratio of 0.81. This is in the lower half of the industry: UNP underperforms 75.00% of its industry peers.
A Quick Ratio of 0.67 indicates that UNP may have some problems paying its short term obligations.
With a Quick ratio value of 0.67, UNP is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
UNP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.19%.
The Earnings Per Share has been growing slightly by 5.63% on average over the past years.
UNP shows a decrease in Revenue. In the last year, the revenue decreased by -3.04%.
UNP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.10% yearly.
EPS 1Y (TTM)-8.19%
EPS 3Y8.39%
EPS 5Y5.63%
EPS growth Q2Q1.5%
Revenue 1Y (TTM)-3.04%
Revenue growth 3Y7.28%
Revenue growth 5Y1.1%
Revenue growth Q2Q-0.34%
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 11.28% on average per year.
UNP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.36% yearly.
EPS Next Y7.64%
EPS Next 2Y10.38%
EPS Next 3Y10.4%
EPS Next 5Y11.28%
Revenue Next Year3.43%
Revenue Next 2Y4.31%
Revenue Next 3Y4.14%
Revenue Next 5Y4.36%
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
Based on the Price/Earnings ratio of 23.28, the valuation of UNP can be described as rather expensive.
Based on the Price/Earnings ratio, UNP is valued a bit cheaper than 61.11% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.92. UNP is around the same levels.
A Price/Forward Earnings ratio of 21.63 indicates a rather expensive valuation of UNP.
UNP's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.49. UNP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 21.63 |
4.2 Price Multiples
UNP's Enterprise Value to EBITDA is on the same level as the industry average.
86.11% 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 | 31.03 | ||
| EV/EBITDA | 15.8 |
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)3.05
PEG (5Y)4.13
EPS Next 2Y10.38%
EPS Next 3Y10.4%
5. Dividend
5.1 Amount
UNP has a Yearly Dividend Yield of 2.24%.
Compared to an average industry Dividend Yield of 1.78, UNP pays a better dividend. On top of this UNP pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, UNP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
The dividend of UNP is nicely growing with an annual growth rate of 11.21%!
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)11.21%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
49.74% of the earnings are spent on dividend by UNP. This is a bit on the high side, but may be sustainable.
UNP's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP49.74%
EPS Next 2Y10.38%
EPS Next 3Y10.4%
UNION PACIFIC CORP
NYSE:UNP (4/26/2024, 7:21:39 PM)
After market: 242 -0.79 (-0.33%)242.79
-0.76 (-0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap148.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Dividend Growth(5Y)
DP
Div Incr Years
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Ex-Date
Surprises & Revisions
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Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.28 | ||
| Fwd PE | 21.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.05
PEG (5Y)4.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.5% | ||
| ROE | 43.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 37.65% | ||
| PM (TTM) | 26.45% | ||
| GM | 77.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-8.19%
EPS 3Y8.39%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.04%
Revenue growth 3Y7.28%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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FCF growth 3Y
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