UNP

Union PacificNYSE:UNP Stock Report

Market Cap

US$132.7b

7D

-3.1%

1Y

0.9%

Updated

16 Sep, 2021

Data

Company Financials +
UNP fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance4/6
Financial Health2/6
Dividends5/6

UNP Overview

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, engages 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$203.44
52 Week HighUS$171.50
52 Week LowUS$231.26
Beta1.13
1 Month Change-9.93%
3 Month Change-5.29%
1 Year Change0.89%
3 Year Change24.04%
5 Year Change113.97%
Change since IPO1,940.78%

Recent News & Updates

Sep 11

Union Pacific - Economic Issues Create Buying Opportunities

Union Pacific, which started the year off strong, is seeing weakness caused by supply chain issues. Additionally, traders are starting to price in lower economic expectations, which is making the UNP valuation more favorable. As a long-term investor, I'm eager to buy more of this dividend growth stock at a >2% yield.

Sep 08
Estimating The Intrinsic Value Of Union Pacific Corporation (NYSE:UNP)

Estimating The Intrinsic Value Of Union Pacific Corporation (NYSE:UNP)

Today we will run through one way of estimating the intrinsic value of Union Pacific Corporation ( NYSE:UNP ) by taking...

Aug 16
Is Union Pacific (NYSE:UNP) Using Too Much Debt?

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

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 03
Union Pacific (NYSE:UNP) Is Increasing Its Dividend To US$1.07

Union Pacific (NYSE:UNP) Is Increasing Its Dividend To US$1.07

Union Pacific Corporation ( NYSE:UNP ) has announced that it will be increasing its dividend on the 30th of September...

Aug 03

Union Pacific: All Aboard The Dividend Train

Union Pacific is a Dividend Contender with 15 consecutive years of dividend growth.  Shares currently yield 1.96%. The company is a wide moat business with a vast rail network that would be hard to duplicate. Buybacks aren't likely to be as prolific as they were over the last decade as leverage on the balance sheet has risen. Union Pacific is attractively valued with a high likelihood of 10% annual returns.

Shareholder Returns

UNPUS TransportationUS Market
7D-3.1%-2.1%-0.6%
1Y0.9%15.5%33.6%

Return vs Industry: UNP underperformed the US Transportation industry which returned 15.2% over the past year.

Return vs Market: UNP underperformed the US Market which returned 33.7% over the past year.

Price Volatility

Is UNP's price volatile compared to industry and market?
UNP volatility
UNP Beta1.13
Industry Beta1.26
Market Beta1

Stable Share Price: UNP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: UNP's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186229,910Lance Fritzhttps://www.up.com

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, engages 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; coal and sand, petroleum, and liquid petroleum gases; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, and soda ash, as well as finished automobiles, automotive parts, and merchandise in intermodal containers. As of December 31, 2020, its rail network included 32,313 route miles connecting Pacific Coast and Gulf Coast ports with the Midwest and Eastern United States gateways.

Valuation

Is Union Pacific undervalued compared to its fair value and its price relative to the market?

4.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UNP ($203.44) is trading below our estimate of fair value ($213.17)

Significantly Below Fair Value: UNP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: UNP is poor value based on its PE Ratio (22.6x) compared to the US Transportation industry average (17.7x).

PE vs Market: UNP is poor value based on its PE Ratio (22.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: UNP is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: UNP is overvalued based on its PB Ratio (9.3x) compared to the US Transportation industry average (2.5x).


Future Growth

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

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNP's forecast earnings growth (5.6% per year) is above the savings rate (2%).

Earnings vs Market: UNP's earnings (5.6% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: UNP's revenue (4.9% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: UNP's revenue (4.9% 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 (49.3%).


Past Performance

How has Union Pacific performed over the past 5 years?

0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNP has high quality earnings.

Growing Profit Margin: UNP's current net profit margins (28.6%) are higher than last year (27.5%).


Past Earnings Growth Analysis

Earnings Trend: UNP's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: UNP's earnings growth over the past year (5.7%) exceeds its 5-year average (0.3% per year).

Earnings vs Industry: UNP earnings growth over the past year (5.7%) underperformed the Transportation industry 48.3%.


Return on Equity

High ROE: Whilst UNP's Return on Equity (41.12%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Union Pacific's financial position?


Financial Position Analysis

Short Term Liabilities: UNP's short term assets ($3.8B) do not cover its short term liabilities ($4.4B).

Long Term Liabilities: UNP's short term assets ($3.8B) do not cover its long term liabilities ($43.4B).


Debt to Equity History and Analysis

Debt Level: UNP's debt to equity ratio (198.3%) is considered high.

Reducing Debt: UNP's debt to equity ratio has increased from 74.4% to 198.3% over the past 5 years.

Debt Coverage: UNP's debt is well covered by operating cash flow (29.5%).

Interest Coverage: UNP's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet


Dividend

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

2.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UNP's dividend (2.1%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: UNP's dividend (2.1%) is low compared to the top 25% of dividend payers in the US market (3.58%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.2%), UNP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UNP's dividends in 3 years are forecast to be well covered by earnings (38% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Lance Fritz (58 yo)

6.58yrs

Tenure

US$16,632,099

Compensation

Mr. Lance M. Fritz serves as Director at Parker-Hannifin Corporation since January 27, 2021. Mr. Fritz has been the Chief Executive Officer and President of Union Pacific Corporation and Union Pacific Rail...


CEO Compensation Analysis

Compensation vs Market: Lance's total compensation ($USD16.63M) is above average for companies of similar size in the US market ($USD11.33M).

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 (3.1 years average tenure).


Board Members

Experienced Board: UNP's board of directors are considered experienced (5.8 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

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


Top Shareholders

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
  • Market Cap: US$132.668b
  • Shares outstanding: 652.12m
  • Website: https://www.up.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:50
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.