Loading...

Union Pacific

NYSE:UNP
Snowflake Description

Established dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
UNP
NYSE
$123B
Market Cap
  1. Home
  2. US
  3. Transportation
Company description

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, engages in the railroad business in the United States. The last earnings update was 87 days ago. More info.


Add to Portfolio Compare Print
UNP Share Price and Events
7 Day Returns
2.4%
NYSE:UNP
1.7%
US Transportation
0.6%
US Market
1 Year Returns
24.4%
NYSE:UNP
14.2%
US Transportation
4.7%
US Market
UNP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Union Pacific (UNP) 2.4% 4.2% 3.8% 24.4% 85.2% 71.7%
US Transportation 1.7% 3.2% 2.4% 14.2% 77.5% 71.2%
US Market 0.6% 4.2% 2.7% 4.7% 38% 43.5%
1 Year Return vs Industry and Market
  • UNP outperformed the Transportation industry which returned 14.2% over the past year.
  • UNP outperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
UNP
Industry
5yr Volatility vs Market

Value

 Is Union Pacific undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Union Pacific to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Union Pacific.

NYSE:UNP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 22 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:UNP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Transportation Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.966 (1 + (1- 21%) (22.07%))
1.09
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.09 * 5.96%)
9.23%

Discounted Cash Flow Calculation for NYSE:UNP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Union Pacific is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:UNP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.23%)
2020 6,432.00 Analyst x11 5,888.68
2021 6,839.33 Analyst x3 5,732.69
2022 7,220.00 Analyst x2 5,540.56
2023 7,924.00 Analyst x1 5,567.16
2024 8,368.37 Est @ 5.61% 5,382.72
2025 8,765.40 Est @ 4.74% 5,161.85
2026 9,128.30 Est @ 4.14% 4,921.48
2027 9,467.61 Est @ 3.72% 4,673.25
2028 9,791.50 Est @ 3.42% 4,424.86
2029 10,106.16 Est @ 3.21% 4,181.28
Present value of next 10 years cash flows $51,474.54
NYSE:UNP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $10,106.16 × (1 + 2.73%) ÷ (9.23% – 2.73%)
$159,811.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $159,811.89 ÷ (1 + 9.23%)10
$66,119.84
NYSE:UNP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $51,474.54 + $66,119.84
$117,594.38
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $117,594.38 / 707.84
$166.13
NYSE:UNP Discount to Share Price
Calculation Result
Value per share (USD) From above. $166.13
Current discount Discount to share price of $174.05
= -1 x ($174.05 - $166.13) / $166.13
-4.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Union Pacific is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Union Pacific's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Union Pacific's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:UNP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $8.22
NYSE:UNP Share Price ** NYSE (2019-07-12) in USD $174.05
United States of America Transportation Industry PE Ratio Median Figure of 25 Publicly-Listed Transportation Companies 17.23x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Union Pacific.

NYSE:UNP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:UNP Share Price ÷ EPS (both in USD)

= 174.05 ÷ 8.22

21.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Union Pacific is overvalued based on earnings compared to the US Transportation industry average.
  • Union Pacific is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Union Pacific's expected growth come at a high price?
Raw Data
NYSE:UNP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts
7.4%per year
United States of America Transportation Industry PEG Ratio Median Figure of 23 Publicly-Listed Transportation Companies 2.07x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:UNP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.18x ÷ 7.4%

2.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Union Pacific is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Union Pacific's assets?
Raw Data
NYSE:UNP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $25.04
NYSE:UNP Share Price * NYSE (2019-07-12) in USD $174.05
United States of America Transportation Industry PB Ratio Median Figure of 28 Publicly-Listed Transportation Companies 1.7x
United States of America Market PB Ratio Median Figure of 5,239 Publicly-Listed Companies 1.81x
NYSE:UNP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:UNP Share Price ÷ Book Value per Share (both in USD)

= 174.05 ÷ 25.04

6.95x

* Primary Listing of Union Pacific.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Union Pacific is overvalued based on assets compared to the US Transportation industry average.
X
Value checks
We assess Union Pacific's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Transportation industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Transportation industry average (and greater than 0)? (1 check)
  5. Union Pacific has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Union Pacific expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Union Pacific expected to grow at an attractive rate?
  • Union Pacific's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Union Pacific's earnings growth is positive but not above the United States of America market average.
  • Union Pacific's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:UNP Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:UNP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts 7.4%
NYSE:UNP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts 3.8%
United States of America Transportation Industry Earnings Growth Rate Market Cap Weighted Average 12%
United States of America Transportation Industry Revenue Growth Rate Market Cap Weighted Average 8.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:UNP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:UNP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 27,225 11,574 8,619 2
2022-12-31 25,624 10,714 7,808 3
2021-12-31 24,703 10,086 7,316 10
2020-12-31 24,045 9,319 6,804 22
2019-12-31 22,981 8,967 6,275 22
NYSE:UNP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 22,741 8,744 6,047
2018-12-31 22,832 8,686 5,966
2018-09-30 22,525 8,206 11,690
2018-06-30 22,005 7,804 11,291
2018-03-31 21,583 7,248 10,950
2017-12-31 21,240 7,230 10,712
2017-09-30 20,958 7,456 4,578
2017-06-30 20,724 7,459 4,515
2017-03-31 20,244 7,235 4,326
2016-12-31 19,941 7,525 4,233
2016-09-30 19,981 7,186 4,206
2016-06-30 20,369 7,096 4,375

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Union Pacific's earnings are expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).
  • Union Pacific's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:UNP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below

All data from Union Pacific Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:UNP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 14.82 14.82 14.82 1.00
2022-12-31 12.62 13.24 12.00 2.00
2021-12-31 11.47 12.30 10.67 7.00
2020-12-31 10.20 10.90 9.46 21.00
2019-12-31 8.94 9.17 8.49 20.00
NYSE:UNP Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 8.22
2018-12-31 7.95
2018-09-30 15.29
2018-06-30 14.50
2018-03-31 13.87
2017-12-31 13.42
2017-09-30 5.67
2017-06-30 5.53
2017-03-31 5.25
2016-12-31 5.09
2016-09-30 5.01
2016-06-30 5.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Union Pacific is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Union Pacific's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Union Pacific has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Union Pacific performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Union Pacific's growth in the last year to its industry (Transportation).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Union Pacific's year on year earnings growth rate has been positive over the past 5 years.
  • Union Pacific's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Union Pacific's 1-year earnings growth is negative, it can't be compared to the US Transportation industry average.
Earnings and Revenue History
Union Pacific's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Union Pacific Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:UNP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 22,741.00 6,047.00 -17.00
2018-12-31 22,832.00 5,966.00 -13.00
2018-09-30 22,525.00 11,690.00 -28.00
2018-06-30 22,005.00 11,291.00 -28.00
2018-03-31 21,583.00 10,950.00 -28.00
2017-12-31 21,240.00 10,712.00 -24.00
2017-09-30 20,958.00 4,578.00
2017-06-30 20,724.00 4,515.00
2017-03-31 20,244.00 4,326.00
2016-12-31 19,941.00 4,233.00 -29.00
2016-09-30 19,981.00 4,206.00
2016-06-30 20,369.00 4,375.00
2016-03-31 21,028.00 4,600.00
2015-12-31 21,813.00 4,772.00
2015-09-30 22,758.00 5,086.00
2015-06-30 23,378.00 5,156.00
2015-03-31 23,964.00 5,243.00
2014-12-31 23,988.00 5,180.00
2014-09-30 23,465.00 4,923.00
2014-06-30 22,856.00 4,704.00
2014-03-31 22,311.00 4,519.00
2013-12-31 21,963.00 4,388.00
2013-09-30 21,583.00 4,250.00
2013-06-30 21,353.00 4,141.00
2013-03-31 21,104.00 4,037.00
2012-12-31 20,926.00 3,943.00
2012-09-30 20,784.00 3,871.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Union Pacific has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Union Pacific used its assets more efficiently than the US Transportation industry average last year based on Return on Assets.
  • Union Pacific has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Union Pacific's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Transportation industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Union Pacific has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Union Pacific's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Union Pacific's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Union Pacific's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Union Pacific's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Union Pacific's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Union Pacific Company Filings, last reported 3 months ago.

NYSE:UNP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 17,742.00 24,453.00 1,119.00
2018-12-31 20,423.00 22,391.00 1,333.00
2018-09-30 20,645.00 22,411.00 1,900.00
2018-06-30 19,909.00 22,813.00 1,694.00
2018-03-31 24,389.00 17,588.00 1,138.00
2017-12-31 24,856.00 16,944.00 1,365.00
2017-09-30 19,151.00 16,833.00 1,937.00
2017-06-30 19,615.00 15,760.00 1,376.00
2017-03-31 19,723.00 15,033.00 1,139.00
2016-12-31 19,932.00 15,007.00 1,337.00
2016-09-30 20,284.00 15,612.00 2,239.00
2016-06-30 20,422.00 15,186.00 2,160.00
2016-03-31 20,475.00 15,193.00 2,673.00
2015-12-31 20,702.00 14,201.00 1,391.00
2015-09-30 20,599.00 13,319.00 1,078.00
2015-06-30 20,990.00 13,339.00 2,041.00
2015-03-31 21,057.00 12,300.00 1,587.00
2014-12-31 21,189.00 11,413.00 1,586.00
2014-09-30 21,553.00 11,505.00 1,887.00
2014-06-30 21,440.00 10,843.00 1,537.00
2014-03-31 21,272.00 10,176.00 1,857.00
2013-12-31 21,225.00 9,577.00 1,432.00
2013-09-30 20,774.00 9,455.00 1,366.00
2013-06-30 20,524.00 9,809.00 1,845.00
2013-03-31 20,144.00 9,861.00 1,917.00
2012-12-31 19,877.00 8,997.00 1,063.00
2012-09-30 19,549.00 9,486.00 1,130.00
  • Union Pacific's level of debt (141.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (47.9% vs 141.5% today).
  • Debt is well covered by operating cash flow (34.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.5x coverage).
X
Financial health checks
We assess Union Pacific's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Union Pacific has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.02%
Current annual income from Union Pacific dividends. Estimated to be 2.24% next year.
If you bought $2,000 of Union Pacific shares you are expected to receive $40 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Union Pacific's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Union Pacific's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:UNP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
United States of America Transportation Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:UNP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 4.97 1.00
2022-12-31 4.58 2.00
2021-12-31 4.23 9.00
2020-12-31 3.93 16.00
2019-12-31 3.58 17.00
NYSE:UNP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-16 3.520 2.071
2019-02-07 3.520 2.080
2018-11-15 3.200 2.159
2018-07-26 3.200 2.097
2018-05-10 2.920 2.042
2018-02-08 2.920 2.186
2017-11-16 2.660 2.031
2017-07-27 2.420 2.198
2017-05-11 2.420 2.228
2017-02-02 2.420 2.247
2016-11-17 2.420 2.321
2016-07-28 2.200 2.339
2016-05-12 2.200 2.518
2016-02-04 2.200 2.708
2015-11-19 2.200 2.870
2015-07-30 2.200 2.458
2015-05-14 2.200 2.218
2015-02-05 2.200 1.949
2014-11-20 2.000 1.703
2014-07-31 2.000 1.853
2014-05-16 1.820 1.818
2014-02-06 1.820 1.964
2013-11-21 1.580 1.898
2013-08-01 1.580 2.022
2013-05-16 1.380 1.755
2013-02-07 1.380 1.951
2012-11-15 1.380 2.172
2012-07-26 1.200 1.960
2012-05-10 1.200 2.101
2012-02-02 1.200 2.167
2011-11-17 1.200 2.278
2011-07-28 0.950 2.067
2011-05-05 0.950 1.861
2011-02-03 0.760 1.573
2010-11-18 0.760 1.629
2010-07-29 0.660 1.628
2010-05-06 0.660 1.834
2010-02-04 0.540 1.518
2009-11-19 0.540 1.672
2009-07-30 0.540 1.784
2009-05-14 0.540 2.082
2009-02-05 0.540 2.512
2008-11-20 0.540 2.338
2008-07-31 0.540 1.591

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Union Pacific's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Union Pacific's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Union Pacific afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Union Pacific has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Union Pacific's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lance Fritz
COMPENSATION $13,886,953
AGE 56
TENURE AS CEO 4.4 years
CEO Bio

Mr. Lance M. Fritz has been the Chief Executive Officer and President of Union Pacific Corporation and Union Pacific Railroad Company Inc. since February 6, 2015 and February 6, 2014 respectively. Mr. Fritz served as the Chief Operating Officer of Union Pacific Corporation. Mr. Fritz served as the Chief Operating Officer of Union Pacific Railroad Company Inc. from February 6, 2014 to February 6, 2015. Mr. Fritz served as Executive Vice President of Operations at Union Pacific Railroad Company Inc. since September 1, 2010. Mr. Fritz served as the Executive Vice President and Head of Operations at Union Pacific Corporation and also served as its Chief Operating Officer from February 6, 2014 to February 6, 2015. He served as Vice President of Operations at Union Pacific Railroad Company Inc. since January 2010 and served as its Vice Chairman of Human Resources. Mr. Fritz served as a Vice President of Labor Relations of Union Pacific Corp. and served as its Vice President and General Manager of Energy in Marketing. He served as Vice President of Northern Region of Union Pacific Corp., since February 28, 2005 and its Vice President of the Southern region. He joined Union Pacific in 2000. He served with General Electric and later with Coopers Industries. Mr. Fritz has been the Chairman of Union Pacific Corporation since July 30, 2015. He served as Vice Chairman and Director of Energy at Union Pacific since July, 2000. He has been a Director at Ferrocarril Mexicano, S.a. De C.v. since April 2015. Mr. Fritz serves as a Board Member of Transportation Technology Center, Inc. He serves as Chairman of the Board of Directors at United Way of the Midland. He is Member of the Chamber of Commerce of the United States of America. He serves as Chairman of Union Pacific Railroad Company Inc. since October 1, 2015. Mr. Fritz holds a Bachelor's degree in Mechanical Engineering from Bucknell University and a Master's in Business Administration from the Kellogg School of Management at Northwestern University.

CEO Compensation
  • Lance's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Lance's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Union Pacific management team in years:

1.2
Average Tenure
56
Average Age
  • The average tenure for the Union Pacific management team is less than 2 years, this suggests a new team.
Management Team

Lance Fritz

TITLE
Chairman
COMPENSATION
$14M
AGE
56
TENURE
4.4 yrs

Robert Knight

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
61
TENURE
15.4 yrs

Rhonda Ferguson

TITLE
Executive VP
COMPENSATION
$3M
AGE
50
TENURE
3 yrs

Beth Whited

TITLE
Executive VP & Chief Human Resource Officer
COMPENSATION
$3M
AGE
53
TENURE
0.9 yrs

Jim Vena

TITLE
Chief Operating Officer
AGE
60
TENURE
0.5 yrs

Jon Panzer

TITLE
Senior Vice President of Technology & Strategic Planning
TENURE
0.3 yrs

Scott Moore

TITLE
Senior VP of Corporate Relations & Chief Administrative Officer
TENURE
1.6 yrs

Tom Lange

TITLE
Assistant Vice President of Corporate Communications

Jennifer Hamann

TITLE
Senior Vice President of Finance
TENURE
0.3 yrs

Clark Ponthier

TITLE
Senior Vice President of Supply Chain & Continuous Improvement
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Union Pacific board of directors in years:

4.5
Average Tenure
66
Average Age
  • The tenure for the Union Pacific board of directors is about average.
Board of Directors

Lance Fritz

TITLE
Chairman
COMPENSATION
$14M
AGE
56
TENURE
3.8 yrs

Erroll Davis

TITLE
Independent Director
COMPENSATION
$315K
AGE
74
TENURE
15.1 yrs

Mack McLarty

TITLE
Independent Director
COMPENSATION
$317K
AGE
72
TENURE
12.7 yrs

Mike McCarthy

TITLE
Lead Independent Director
COMPENSATION
$308K
AGE
67
TENURE
3.5 yrs

Dave Dillon

TITLE
Independent Director
COMPENSATION
$300K
AGE
67
TENURE
5.3 yrs

Andrew Card

TITLE
Independent Director
COMPENSATION
$307K
AGE
71
TENURE
13 yrs

Jose Villarreal

TITLE
Independent Director
COMPENSATION
$282K
AGE
65
TENURE
10.5 yrs

Jane Lute

TITLE
Independent Director
COMPENSATION
$307K
AGE
62
TENURE
3.3 yrs

Debby Hopkins

TITLE
Independent Director
COMPENSATION
$264K
AGE
64
TENURE
2.5 yrs

Bob Patel

TITLE
Director
COMPENSATION
$291K
AGE
52
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Union Pacific's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Union Pacific has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Union Pacific Corporation (NYSE:UNP) A High Quality Stock To Own?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Union Pacific: 34% = US$6.0b ÷ US$18b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … Union Pacific's Debt And Its 34% ROE It's worth noting the significant use of debt by Union Pacific, leading to its debt to equity ratio of 1.42.

Simply Wall St -

Introducing Union Pacific (NYSE:UNP), A Stock That Climbed 94% In The Last Three Years

For example, the Union Pacific Corporation (NYSE:UNP) share price is up 94% in the last three years, clearly besting than the market return of around 39% (not including dividends). … Union Pacific was able to grow its EPS at 15% per year over three years, sending the share price higher. … We note that for Union Pacific the TSR over the last 3 years was 107%, which is better than the share price return mentioned above.

Simply Wall St -

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

The first step when considering a company's debt levels is to consider its cash and debt together. … Either way, since Union Pacific does have more debt than cash, it's worth keeping an eye on its balance sheet. … Considering this range of data points, we think Union Pacific is in a good position to manage its debt levels.

Simply Wall St -

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

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Union Pacific Corporation (NYSE:UNP) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $5.98k $6.46k $6.76k $7.03k $7.93k $8.37k $8.76k $9.12k $9.45k $9.77k Growth Rate Estimate Source Analyst x12 Analyst x12 Analyst x3 Analyst x2 Analyst x1 Est @ 5.5% Est @ 4.67% Est @ 4.09% Est @ 3.68% Est @ 3.39% Present Value ($, Millions) Discounted @ 9.51% $5.46k $5.38k $5.14k $4.89k $5.04k $4.85k $4.64k $4.41k $4.17k $3.94k Present Value of 10-year Cash Flow (PVCF)= $47.92b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … NYSE:UNP Intrinsic value, June 6th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Is It Too Late To Consider Buying Union Pacific Corporation (NYSE:UNP)?

According to my valuation model, Union Pacific seems to be fairly priced at around 13.15% above my intrinsic value, which means if you buy Union Pacific today, you’d be paying a relatively fair price for it. … Given that Union Pacific’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. … UNP’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

Why Dividend Hunters Love Union Pacific Corporation (NYSE:UNP)

Of the free cash flow it generated last year, Union Pacific paid out 42% as dividends, suggesting the dividend is affordable. … Union Pacific has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Union Pacific has grown its earnings per share at 12% per annum over the past five years.

Simply Wall St -

How Should Investors Feel About Union Pacific Corporation's (NYSE:UNP) CEO Pay?

In 2015 Lance Fritz was appointed CEO of Union Pacific Corporation (NYSE:UNP). … This analysis aims first to contrast CEO compensation with other large companies. … View our latest analysis for Union Pacific

Simply Wall St -

How Do Analysts See Union Pacific Corporation (NYSE:UNP) Performing In The Year Ahead?

Looking at Union Pacific Corporation's (NYSE:UNP) earnings update in December 2018,. … with earnings expected to grow by 6.6% in the upcoming year … the higher past 5-year average growth rate of 17%

Simply Wall St -

Union Pacific (NYSE:UNP) Shareholders Have Enjoyed An Impressive 112% Share Price Gain

For example, the Union Pacific Corporation (NYSE:UNP) share price has soared 112% in the last three years. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Union Pacific was able to grow its EPS at 13% per year over three years, sending the share price higher.

Simply Wall St -

Can We See Significant Institutional Ownership On The Union Pacific Corporation (NYSE:UNP) Share Register?

If you want to know who really controls Union Pacific Corporation (NYSE:UNP), then you'll have to look at the makeup of its share registry. … With a market capitalization of US$119b, Union Pacific is rather large. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Company Info

Description

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, engages in the railroad business in the United States. It offers transportation services for agricultural products, including grains, commodities produced from grains, fertilizers, and food and beverage products; coal and sand, as well as petroleum, liquid petroleum gases, and renewables; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, and soda ash, as well as intermodal and finished vehicles. As of December 31, 2018, its rail network included 32,236 route miles linking Pacific Coast and Gulf Coast ports with the Midwest and Eastern United States gateways. Union Pacific Corporation was founded in 1862 and is headquartered in Omaha, Nebraska.

Details
Name: Union Pacific Corporation
UNP
Exchange: NYSE
Founded: 1862
$123,199,234,010
707,838,173
Website: http://www.up.com
Address: Union Pacific Corporation
1400 Douglas Street,
Omaha,
Nebraska, 68179,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE UNP Common Shares New York Stock Exchange US USD 02. Jan 1969
DB UNP Common Shares Deutsche Boerse AG DE EUR 02. Jan 1969
LSE 0R2E Common Shares London Stock Exchange GB USD 02. Jan 1969
WBAG UNPC Common Shares Wiener Boerse AG AT EUR 02. Jan 1969
SNSE UNP Common Shares Santiago Stock Exchange CL USD 02. Jan 1969
BMV UNP * Common Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1969
BOVESPA UPAC34 BDR REPR 1/4 COM USD2.50 Bolsa de Valores de Sao Paulo BR BRL 27. Jul 2015
Number of employees
Current staff
Staff numbers
40,053
Union Pacific employees.
Industry
Railroads
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/14 23:46
End of day share price update: 2019/07/12 00:00
Last estimates confirmation: 2019/07/11
Last earnings filing: 2019/04/18
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.