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UNP

Union Pacific NYSE:UNP Stock Report

Last Price

US$200.62

Market Cap

US$125.3b

7D

-0.6%

1Y

-5.6%

Updated

05 Oct, 2022

Data

Company Financials +
UNP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health2/6
Dividends5/6

UNP Stock Overview

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States.

Union Pacific Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Union Pacific
Historical stock prices
Current Share PriceUS$200.62
52 Week HighUS$278.94
52 Week LowUS$194.73
Beta1.14
1 Month Change-10.41%
3 Month Change-5.65%
1 Year Change-5.56%
3 Year Change30.93%
5 Year Change77.46%
Change since IPO1,912.49%

Recent News & Updates

Sep 26

Improved Valuation Makes Union Pacific Worth Considering

Summary UNP has fallen 27% from the 12-month high at the end of March. Labor issues, fuel costs, and inflation have posed challenges. U.S. rail volumes are falling. The Wall Street consensus outlook is bullish, with expected return of 22% over the next year. The market-implied outlook (calculated from options prices) is bullish to early- and mid-2022, albeit with elevated volatility. Union Pacific (UNP) closed at a 12-month high of $276.69 on March 30, but has since declined 27% to reach the current share price, $201.43. UNP’s YTD and 12-month total returns are -17.5% and +3.6%, respectively, as compared to -21.6% and -15.7% for the S&P 500 (SPY) over the same periods. After bouncing off the YTD lows, the shares have been in decline since mid August, in tandem with the broad sell-off in the S&P 500 over the same period. UNP has also had some negative news over the month or so, which has exacerbated the decline. First, ongoing labor disputes increased the potential for a strike, although a tentative agreement has been reached. Second, UNP was downgraded by Bernstein because of risks associated with inflation. Third, U.S. weekly railroad traffic was reported to have dropped by 2.9% YoY for the week ending Sept. 17. The YTD U.S. rail traffic was down 2.7% as compared to the same period in 2021. Seeking Alpha 12-Month price history and basic statistics for UNP (Source: Seeking Alpha) Even with the declines in rail traffic, UNP’s quarterly earnings have held up so far and the outlook is for continued growth. The consensus outlook is for 10.2% compounded EPS growth over the next three to five years. This is especially notable because U.S. rail traffic has been in decline over the past decade. ETrade Historical (4 years) and estimated future quarterly EPS for UNP. Green (red) values are amounts by which EPS beat (missed) the consensus expected value (Source: ETrade) With the share price declines and growing earnings, UNP’s forward P/E of 17.5 looks more attractive than the P/E from my previous analysis. The TTM P/E, 19.0, is well below the value from January, although the shares continue to look expensive on the basis of a range of measures (Seeking Alpha’s valuation grade is a D). Even so, with a 2.55% forward dividend yield and annualized EPS growth rates of 12%, 15.4%, and 15.3% over the past three, five, and 10 years, respectively, the income potential from UNP is substantial. I last wrote about UNP on Jan. 18, 2022, at which time I was bullish on UNP to the middle of 2022 but neutral for the full year. At that time, the company had delivered a series of quarters of robust growth and rail volume was still increasing. My main concern was the valuation. With a TTM P/E of 26.5, UNP was well above the historical range. The Wall Street consensus rating for UNP was a buy, and the consensus price target implied a total return of 7.65% over the next 12 months. Along with looking at fundamentals and the Wall Street consensus, I also rely on the consensus view among buyers and sellers of options, the market-implied outlook. In mid January, the market-implied outlook was bullish to mid-year but neutral out to mid-January of 2023. The expected volatility, one of the outputs from the market-implied outlook calculations, ranged from 24% (annualized) for the shorter-term outlook to 27% for the full year. As a rule of thumb for a buy rating, I want to see an expected 12-month total return that is at least ½ the expected annualized volatility. Taking the Wall Street consensus price target at face value, UNP fell well below this threshold (7.65% / 24% = 32%). I maintained my overall neutral / hold rating on UNP. Since this post, UNP has returned a total of -14.0% vs. -18.7% for the S&P 500 (SPY). For readers who are unfamiliar with the market-implied outlook, a brief explanation is needed. The price of an option on a stock is largely determined by the market’s consensus estimate of the probability that the stock price will rise above (call option) or fall below (put option) a specific level (the option strike price) between now and when the option expires. By analyzing the prices of call and put options at a range of strike prices, all with the same expiration date, it's possible to calculate a probabilistic price forecast that reconciles the options prices. This is the market-implied outlook. For a deeper explanation and background, I recommend this monograph published by the CFA Institute. With about eight months since my last analysis of UNP, I have calculated updated market-implied outlooks and I have compared these with the current Wall Street consensus outlook in revisiting my overall rating. Wall Street Consensus Outlook for UNP ETrade calculates the Wall Street consensus outlook for UNP by aggregating ratings and price targets from 18 ranked analysts who have published opinions over the past three months. The consensus rating is a buy, as it has been for all of the past year, and the consensus 12-month price target is 18.8% above the current share price. The 12-month price target is somewhat lower than it was back in January, $264.81, but the share price declines have boosted the expected return implied by the consensus price target. The range of individual price targets is relatively tight, increasing confidence in the predictive value of the consensus. ETrade Wall Street analyst consensus rating and 12-month price target for UNP (Source: ETrade) Seeking Alpha’s version of the Wall Street consensus outlook is calculated using the views of 29 analysts who have published ratings and price targets over the past 90 days. The consensus rating is a buy and the consensus 12-month price target is 20.0% above the current share price. Seeking Alpha Wall Street analyst consensus rating and 12-month price target for UNP (Source: Seeking Alpha) While the average analyst rating on UNP has fallen substantially since early 2022, the average rating remains slightly higher than it was three years ago. Seeking Alpha 3-Year history for average analyst rating on UNP (Source: Seeking Alpha) The Seeking Alpha and ETrade calculations of the Wall Street consensus outlook are very similar, consistent with a fairly high level of agreement between analysts. The consensus rating continues to be a buy, as it has been for years. The consensus 12-month price target implies a total return of 22% over the next year, far higher than consensus expected return from mid-January, 7.65%. Market-Implied Outlook for UNP I have calculated the market-implied outlook for UNP for the 3.8-month period from now until Jan. 20, 2023, and for the 8.6-month period from now until June 16, 2023, using the prices of call and put options that expire on these dates. I selected these two dates to provide a view to the start and middle of 2023, as well as because the options expiring in January and June tend to be among the most liquid. The standard presentation of the market-implied outlook is a probability distribution of price return, with probability on the vertical axis and return on the horizontal. Geoff Considine Market-implied price return probabilities for UNP for the 3.8-month period from now until January 20, 2023 (Source: Author’s calculations using options quotes from ETrade) At first glance, the market-implied outlook to Jan. 20, 2023, looks symmetric, with comparable probabilities of positive and negative returns of the same size. Closer inspection shows that the probabilities of positive returns tend to be some elevated. Compare, for example, the probabilities associated with a return of +10% or +15% to those for returns of -10% or -15%. The expected volatility calculated from this distribution is 33% (annualized), considerably higher than the expected volatility from back in January. This is not surprising, given rising uncertainties and risks associated with labor issues, fuel prices, and falling rail volumes. To make it easier to compare the relative probabilities of positive and negative returns, I rotate the negative return side of the distribution about the vertical axis (see chart below). Geoff Considine Market-implied price return probabilities for UNP for the 3.8-month period from now until January 20, 2023. The negative return side of the distribution has been rotated about the vertical axis (Source: Author’s calculations using options quotes from ETrade) This view really highlights that the probabilities of positive returns are consistently elevated as compared to those for negative returns, across a wide range of outcomes (the solid blue line is well above the dashed red live over almost the entirety of the chart above).

Sep 20

Short Puts The Most Compelling Way To Play Union Pacific

Summary The gap between 2019 traffic and 2022 traffic is narrowing, but traffic remains well below pre-pandemic levels. The valuation is nearly identical today to pre-pandemic levels. A long position in the stock is a bet on continuous improvement, and that's risky in my view. Thankfully, the options market offers investors a way to make a decent risk-adjusted return at the moment. It's been just over a month since I sold my Union Pacific Corporation (UNP) shares, and in that time, the stock is down about 8.85% against a loss of 7.77% for the S&P 500. Now, I don't want to brag, but if you review my calls on this name in the article cited above, you'll see a little green dot where I became bullish in mid June, rode the stock higher for two months, then put out a cautionary note in mid August. The shares are now down nicely in price. I want to just take a moment to mull that performance over, as I try to drive that pesky little voice in my head that's yammering something or other about "pride goeth before the fall" or whatever. Anyway, I obviously like this business at the right price, so it's time to determine whether or not the price is right enough to buy shares again. I'll make that determination by looking at the relationship between traffic and the stock valuation. If the market is currently acknowledging the fact that traffic remains at pre-pandemic levels via reduced valuations, I'll buy. Finally, I wrote some puts that expired in August, and I'm absolutely champing at the bit to write about those. Welcome to the "thesis statement" paragraph. I put this paragraph together in each of my articles for those people who want a bit more than the title and the bullet points, but far less "Doyle mojo." I've already bragged once in this article, and I can understand how tiresome it is to read such things, so I create a thesis statement to insulate you against such nonsense. I am secure in the knowledge that my legions of fans are grateful for my rhetorical largesse. I'm of the view that Union Pacific is not yet in the "buy zone." The valuation today is identical to what it was exactly two years ago, when traffic was higher. Although the gap between 2019 and 2022 is narrowing, a long position in this stock right now would be a bet on continued relative improvement in traffic, and I think that's a heavy lift given the current state of the global economy. I've done well with short puts here, and I think they represent the best risk adjusted returns. Specifically, I'll be selling the January 2023 puts with a strike of $190, as I consider these to be a "win-win" trade. Thus ends my thesis statement, and if you read on from here, that's on you. Any nausea you experience from reading my subtle or overt self congratulation is entirely your fault. Traffic Update Much has recently been made of the fact that FedEx (FDX) traffic has cratered recently. One of the implications of this is that it may very well be that the global economy is much weaker than what many suppose. I hope I don't come off as too churlish, but I've been writing about falling traffic at the Class 1 rails for a while now. That's a lie. I actually don't care if I come off as churlish or not. Anyway, I thought it'd be interesting to revisit Union Pacific's traffic patterns and compare those to the current valuation. I want to explore the interplay between recent traffic patterns and valuations. In particular, I want to try to understand if the market is paying more or less for a network that is moving more or less traffic than it had in the past. I've recreated the most recent AAR traffic report for your enjoyment and edification, below, and I think it reveals some interesting things, some of which you can pull out to enliven the conversation at your next cocktail party. Highlights of the Comparison Motor vehicles have recovered well from last year, but still remain ~18% below the pre-pandemic period. Intermodal traffic is lower now than it was in last year and the pre-pandemic period. The network has transported fewer petroleum carloads so far in 2022 when compared to both 2021 and 2019. Overall, there were about 1.7% more carloads on the system in 2022 as compared to 2021, but the network has not yet recovered to 2019 levels. Specifically, there were 2.7% fewer carloads moved on the system as of Week 37, 2022 as compared to 2019. To be fair, things look better now than they did when I last reviewed this story way back in Week 32. Specifically, Week 32 traffic was fully 6.4% lower than it was in 2019. If none of those talking points will make you the life of the party, then I don't know what kind of people you're hanging out with. Anyway, in my view, the general conclusion is pretty clear, namely that traffic has recovered nicely from 2021, but is still not back to pre-pandemic levels. I'd need to see this reality reflected in the stock price before I get too excited about buying back in. Union Pacific Traffic to Week 37 (Union Pacific investor relations) The Stock If you read my stuff regularly you know what time it is. It's the time where I turn into a bit of a financial "mall cop", where I remind everyone that a company is distinct from its stock. The company buys inputs like fuel, hopefully happy labor, adds value to those, and then sells transportation services at a profit. The stock, on the other hand, is a piece of paper that gets traded around in a public market and is influenced by a great many factors, many of which are only peripherally related to the underlying business. For instance, the stock price is certainly impacted by the company's recent financial performance. It's also impacted by the crowd's ever-changing views about the company's future financial performance. It may be influenced by a number of investors who insist on hanging on to this stock in particular at any valuation because of the gargantuan moat. It's also potentially impacted by the changing moods of an influential analyst. Finally, the stock is influenced by the crowd's ever-changing perspectives on the relative merits of "stocks" as an asset class. To use this stock as an example, the S&P 500, which is admittedly a very concentrated index, lost 7.77% of its value during the time the stock lost 8.85% of its value. It's impossible to prove this definitively, but I think it's reasonable to suggest that part of the loss Union Pacific shareholders have suffered in such a short time is a function of the softness in the overall market. For all of these reasons, the stock is a much more volatile thing than the underlying business. While this is tiresome, it is potentially profitable. If we can spot the discrepancies between the crowd's take on a given business, and the assumptions embedded in the price, we can earn a profit. Not to go on about it too much, but I've used this approach to successfully trade this name among others. I'll relieve you of my sermonizing by making one final point. I've found that cheaper stocks offer a higher risk-adjusted return, so I like to buy shares when I consider them to be cheap and eschew them when they get expensive. If you're one of my regular reader/victims you know that I measure the cheapness (or not) of a stock in a few ways, ranging from the simple to the more complex. On the simple side, I look at the ratio of price to some measure of economic value like sales, earnings, free cash flow, and the like. Ideally, I want to see a stock trading at a discount to both its own history and the overall market. In this case I want to compare the current valuation with what it was back in 2019. After all, if the market is paying more for less traffic, that's potentially troublesome in my view. In my previous missive, I took profits because the price to earnings ratio hit 22.5. Note that I got excited this past June when the shares hit a PE of 20. Fast forward to the present, and the chart below shows the state of the world. Coincidentally enough, the valuation is virtually identical today to what it was in 2019. Traffic was higher in week 37 of 2019 as we've already seen. So, to my way of thinking the valuation is slightly worse now than it was then. Admittedly, traffic is improving and the gap between 2019 and 2022 is narrowing, but to my mind, buying today is a bet on the continuation of that trend. That may be a stretch given some of the signs of economic weakness. Data by YCharts Admittedly, investors are collecting a slightly higher dividend yield than they were exactly two years ago. It's not particularly rich in my estimation, but it's something. Data by YCharts Options Update In my previous article on Union Pacific, I made much of the fact that the August Union Pacific puts were about to expire worthless. Additionally, the January 2023 puts with a strike of $175 which I had sold for $5.85 were at the time trading for $1.55-$1.70. Since the stock has dropped in price, these are now priced $2.90-$3.90. I'm still short an irresponsible number of these because I'd be very happy to buy this name at $175. This trade, among many others, reveals the risk reducing, yield enhancing potential of these wonderful instruments. With that in mind, I recommend selling some more puts today. In particular, I'm a fan of the January 2023 Union Pacific puts with a strike of $190 which are currently bid at $5.40. I like these because I'm a fan of making a 2.84% yield four months. If the shares remain above that price, the investor will simply claim the premia, which isn't a hardship. If the shares fall below $190, the investor will be obliged to buy at a net price of ~$184.60. Holding all else constant, this lines up with a dividend yield of 2.68% and a PE of 17.2. That is an excellent entry point, and I'd be happy to be "forced" to buy at that price. This is why I characterize these short puts as "win-win" trades. The outcome is positive no matter what happens. It's time, once again, to write about risk. It's all well and good for a stranger on the internet to write about "win-win" trades, but if you're going to trade these, you need to be made aware of the fact that this investment, like all investments, comes with risk. I consider the risks associated with these instruments to fall into two broad categories: the economic and the emotional.

Sep 14
Is Union Pacific (NYSE:UNP) Using Too Much Debt?

Is Union Pacific (NYSE:UNP) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

UNPUS TransportationUS Market
7D-0.6%5.0%4.4%
1Y-5.6%-24.9%-18.2%

Return vs Industry: UNP exceeded the US Transportation industry which returned -24.9% over the past year.

Return vs Market: UNP exceeded the US Market which returned -18.2% over the past year.

Price Volatility

Is UNP's price volatile compared to industry and market?
UNP volatility
UNP Average Weekly Movement3.7%
Transportation Industry Average Movement6.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: UNP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: UNP's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186230,452Lance Fritzhttps://www.up.com

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, ethanol producers, and other agricultural users; petroleum, and liquid petroleum gases; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers. As of December 31, 2021, its rail network included 32,452 route miles connecting Pacific Coast and Gulf Coast ports with the Midwest and Eastern United States gateways.

Union Pacific Fundamentals Summary

How do Union Pacific's earnings and revenue compare to its market cap?
UNP fundamental statistics
Market CapUS$125.28b
Earnings (TTM)US$6.85b
Revenue (TTM)US$23.43b

18.3x

P/E Ratio

5.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UNP income statement (TTM)
RevenueUS$23.43b
Cost of RevenueUS$10.17b
Gross ProfitUS$13.26b
Other ExpensesUS$6.41b
EarningsUS$6.85b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 20, 2022

Earnings per share (EPS)10.97
Gross Margin56.61%
Net Profit Margin29.23%
Debt/Equity Ratio249.5%

How did UNP perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

44%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is UNP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for UNP?

Other financial metrics that can be useful for relative valuation.

UNP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.7x
Enterprise Value/EBITDA13.1x
PEG Ratio3.2x

Price to Earnings Ratio vs Peers

How does UNP's PE Ratio compare to its peers?

UNP PE Ratio vs Peers
The above table shows the PE ratio for UNP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.5x
CSX CSX
15.1x2.4%US$59.6b
NSC Norfolk Southern
17.1x5.2%US$51.9b
UPS United Parcel Service
13.3x2.1%US$145.3b
ODFL Old Dominion Freight Line
24.5x6.0%US$30.5b
UNP Union Pacific
18.3x5.7%US$125.3b

Price-To-Earnings vs Peers: UNP is expensive based on its Price-To-Earnings Ratio (18.3x) compared to the peer average (17.5x).


Price to Earnings Ratio vs Industry

How does UNP's PE Ratio compare vs other companies in the US Transportation Industry?

Price-To-Earnings vs Industry: UNP is expensive based on its Price-To-Earnings Ratio (18.3x) compared to the US Transportation industry average (9.2x)


Price to Earnings Ratio vs Fair Ratio

What is UNP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

UNP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.3x
Fair PE Ratio20.6x

Price-To-Earnings vs Fair Ratio: UNP is good value based on its Price-To-Earnings Ratio (18.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.6x).


Share Price vs Fair Value

What is the Fair Price of UNP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: UNP ($200.62) is trading below our estimate of fair value ($302.42)

Significantly Below Fair Value: UNP is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Union Pacific forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNP's forecast earnings growth (5.7% per year) is above the savings rate (1.9%).

Earnings vs Market: UNP's earnings (5.7% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: UNP's earnings are forecast to grow, but not significantly.

Revenue vs Market: UNP's revenue (3.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: UNP's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UNP's Return on Equity is forecast to be very high in 3 years time (71.7%).


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Past Performance

How has Union Pacific performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-7.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UNP has high quality earnings.

Growing Profit Margin: UNP's current net profit margins (29.2%) are higher than last year (28.6%).


Past Earnings Growth Analysis

Earnings Trend: UNP's earnings have declined by 7.1% per year over the past 5 years.

Accelerating Growth: UNP's earnings growth over the past year (16.4%) exceeds its 5-year average (-7.1% per year).

Earnings vs Industry: UNP earnings growth over the past year (16.4%) underperformed the Transportation industry 62.5%.


Return on Equity

High ROE: Whilst UNP's Return on Equity (53.89%) is outstanding, this metric is skewed due to their high level of debt.


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Financial Health

How is Union Pacific's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: UNP's short term assets ($4.0B) do not cover its short term liabilities ($6.0B).

Long Term Liabilities: UNP's short term assets ($4.0B) do not cover its long term liabilities ($45.7B).


Debt to Equity History and Analysis

Debt Level: UNP's net debt to equity ratio (243%) is considered high.

Reducing Debt: UNP's debt to equity ratio has increased from 80.4% to 249.5% over the past 5 years.

Debt Coverage: UNP's debt is well covered by operating cash flow (28.3%).

Interest Coverage: UNP's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


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Dividend

What is Union Pacific current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.59%

Current Dividend Yield

Dividend Yield vs Market

Union Pacific Dividend Yield vs Market
How does Union Pacific dividend yield compare to the market?
SegmentDividend Yield
Company (Union Pacific)2.6%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (Transportation)1.8%
Analyst forecast in 3 Years (Union Pacific)2.7%

Notable Dividend: UNP's dividend (2.59%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: UNP's dividend (2.59%) is low compared to the top 25% of dividend payers in the US market (4.53%).


Stability and Growth of Payments

Stable Dividend: UNP's dividends per share have been stable in the past 10 years.

Growing Dividend: UNP's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (44%), UNP's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (58.1%), UNP's dividend payments are covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Lance Fritz (59 yo)

7.67yrs

Tenure

US$14,523,819

Compensation

Mr. Lance M. Fritz serves as Independent Director at Parker-Hannifin Corporation since January 27, 2021. Mr. Fritz serves as Chief Executive Officer, Chairman, and President of Union Pacific Corporation an...


CEO Compensation Analysis

Lance Fritz's Compensation vs Union Pacific Earnings
How has Lance Fritz's remuneration changed compared to Union Pacific's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$7b

Mar 31 2022n/an/a

US$7b

Dec 31 2021US$15mUS$1m

US$7b

Sep 30 2021n/an/a

US$6b

Jun 30 2021n/an/a

US$6b

Mar 31 2021n/an/a

US$5b

Dec 31 2020US$17mUS$1m

US$5b

Sep 30 2020n/an/a

US$5b

Jun 30 2020n/an/a

US$6b

Mar 31 2020n/an/a

US$6b

Dec 31 2019US$15mUS$1m

US$6b

Sep 30 2019n/an/a

US$6b

Jun 30 2019n/an/a

US$6b

Mar 31 2019n/an/a

US$6b

Dec 31 2018US$14mUS$1m

US$6b

Sep 30 2018n/an/a

US$12b

Jun 30 2018n/an/a

US$11b

Mar 31 2018n/an/a

US$11b

Dec 31 2017US$14mUS$1m

US$11b

Sep 30 2017n/an/a

US$5b

Jun 30 2017n/an/a

US$5b

Mar 31 2017n/an/a

US$4b

Dec 31 2016US$12mUS$1m

US$4b

Sep 30 2016n/an/a

US$4b

Jun 30 2016n/an/a

US$4b

Mar 31 2016n/an/a

US$5b

Dec 31 2015US$10mUS$966k

US$5b

Compensation vs Market: Lance's total compensation ($USD14.52M) is about average for companies of similar size in the US market ($USD13.00M).

Compensation vs Earnings: Lance's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: UNP's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: UNP's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of UNP?
Owner TypeNumber of SharesOwnership Percentage
State or Government268,2640.04%
Individual Insiders958,4750.2%
General Public125,238,98620.1%
Institutions498,012,86979.7%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 42% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.62%
The Vanguard Group, Inc.
53,837,492$10.8b0.08%0.25%
7.05%
BlackRock, Inc.
44,017,061$8.8b0.01%0.22%
4.44%
State Street Global Advisors, Inc.
27,725,657$5.6b-3.95%0.31%
1.74%
Massachusetts Financial Services Company
10,878,730$2.2b-3.06%0.56%
1.71%
Geode Capital Management, LLC
10,658,746$2.1b1.08%0.28%
1.42%
Columbia Management Investment Advisers, LLC
8,881,406$1.8b-10.74%0.53%
1.34%
Wellington Management Group LLP
8,381,095$1.7b-3.72%0.3%
1.16%
Northern Trust Global Investments
7,228,749$1.5b-1.69%0.3%
1.13%
UBS Asset Management
7,069,169$1.4b0.44%0.28%
1.1%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
6,873,273$1.4b-7.66%0.46%
1.07%
Capital Research and Management Company
6,674,231$1.3b-19.66%0.09%
1.07%
FMR LLC
6,660,779$1.3b4.52%0.13%
0.91%
BNY Mellon Asset Management
5,656,005$1.1b1.98%0.26%
0.9%
Norges Bank Investment Management
5,609,297$1.1b0%0.15%
0.89%
Legal & General Investment Management Limited
5,585,167$1.1b1.97%0.34%
0.85%
Managed Account Advisors LLC
5,294,379$1.1b-18.1%0.3%
0.84%
Fisher Asset Management, LLC
5,258,523$1.1b2.93%0.77%
0.84%
TCI Fund Management Limited
5,252,148$1.1b0%3.02%
0.81%
Morgan Stanley, Investment Banking and Brokerage Investments
5,052,138$1.0b-0.75%0.2%
0.8%
Soroban Capital Partners LP
4,988,300$1.0b15.45%9.05%
0.72%
Deutsche Asset & Wealth Management
4,469,417$896.7m-15.41%0.38%
0.66%
Eaton Vance Management
4,112,086$825.0m-4.83%0.31%
0.65%
Bank of America Corporation, Asset Management Arm
4,080,518$818.6m11.22%0.33%
0.65%
Arrowstreet Capital, Limited Partnership
4,037,829$810.1m100.46%1.17%
0.64%
T. Rowe Price Group, Inc.
4,004,224$803.3m8.31%0.09%

Company Information

Union Pacific Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Union Pacific Corporation
  • Ticker: UNP
  • Exchange: NYSE
  • Founded: 1862
  • Industry: Railroads
  • Sector: Transportation
  • Implied Market Cap: US$125.283b
  • Shares outstanding: 624.48m
  • Website: https://www.up.com

Number of Employees


Location

  • Union Pacific Corporation
  • 1400 Douglas Street
  • Omaha
  • Nebraska
  • 68179
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UNPNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1969
UNPDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1969
UNPXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1969
UNP *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1969
UNPSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDJan 1969
0R2ELSE (London Stock Exchange)YesCommon SharesGBUSDJan 1969
UNPAENXTBR (Euronext Brussels)YesCommon SharesBEUSDJan 1969
UNPETLX (Eurotlx)YesCommon SharesITEURJan 1969
UNPCWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1969
UPAC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COM USD2.50BRBRLJul 2015
UNPDBASE (Buenos Aires Stock Exchange)CEDEAR EACH 20 REPR 1 COMARUSDMar 2021
UNPBASE (Buenos Aires Stock Exchange)CEDEAR EACH 20 REPR 1 COMARARSMar 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.