NYSE:UNP

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Union Pacific's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

1.1%

UNP

1.4%

US Transportation

2.8%

US Market


1 Year Return

16.8%

UNP

27.7%

US Transportation

20.9%

US Market

Return vs Industry: UNP underperformed the US Transportation industry which returned 27.7% over the past year.

Return vs Market: UNP underperformed the US Market which returned 20.9% over the past year.


Shareholder returns

UNPIndustryMarket
7 Day1.1%1.4%2.8%
30 Day16.1%21.3%11.1%
90 Day6.9%14.1%6.5%
1 Year19.3%16.8%29.5%27.7%23.6%20.9%
3 Year75.9%65.0%65.3%57.0%47.3%37.6%
5 Year193.7%162.6%179.2%155.6%94.3%72.9%

Long-Term Price Volatility Vs. Market

How volatile is Union Pacific's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

26.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UNP ($205.64) is trading above our estimate of fair value ($155.61)

Significantly Below Fair Value: UNP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UNP is poor value based on its PE Ratio (26.1x) compared to the US Transportation industry average (25.6x).

PE vs Market: UNP is poor value based on its PE Ratio (26.1x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: UNP is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: UNP is overvalued based on its PB Ratio (8.1x) compared to the US Transportation industry average (2.5x).


Next Steps

Future Growth

How is Union Pacific forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNP's forecast earnings growth (8.8% per year) is above the savings rate (2.2%).

Earnings vs Market: UNP's earnings (8.8% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: UNP's revenue (5% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: UNP's revenue (5% 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 (40%).


Next Steps

Past Performance

How has Union Pacific performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNP has high quality earnings.

Growing Profit Margin: UNP's current net profit margins (27.4%) are higher than last year (27.3%).


Past Earnings Growth Analysis

Earnings Trend: UNP's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: UNP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UNP had negative earnings growth (-11.5%) over the past year, making it difficult to compare to the Transportation industry average (-10.3%).


Return on Equity

High ROE: Whilst UNP's Return on Equity (31.23%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Union Pacific's financial position?


Financial Position Analysis

Short Term Liabilities: UNP's short term assets ($5.1B) exceed its short term liabilities ($4.8B).

Long Term Liabilities: UNP's short term assets ($5.1B) do not cover its long term liabilities ($41.7B).


Debt to Equity History and Analysis

Debt Level: UNP's debt to equity ratio (160.4%) is considered high.

Reducing Debt: UNP's debt to equity ratio has increased from 64.7% to 160.4% over the past 5 years.

Debt Coverage: UNP's debt is well covered by operating cash flow (30.2%).

Interest Coverage: UNP's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


Next Steps

Dividend

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

1.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UNP's dividend (1.89%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: UNP's dividend (1.89%) is low compared to the top 25% of dividend payers in the US market (4.08%).


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 (49.3%), 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 (43.7% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Lance Fritz (57 yo)

5.67yrs

Tenure

US$15,018,400

Compensation

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. Frit...


CEO Compensation Analysis

Compensation vs Market: Lance's total compensation ($USD15.02M) is above average for companies of similar size in the US market ($USD10.83M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lance Fritz
Chairman5.67yrsUS$15.02m0.076%
$ 105.0m
Vincenzo Vena
Chief Operating Officer1.83yrsUS$5.82m0.0011%
$ 1.6m
Elizabeth Whited
Executive VP & Chief Human Resource Officer2.25yrsUS$4.28m0.011%
$ 15.3m
Jennifer Hamann
Executive VP & CFO0.83yrno data0.011%
$ 15.1m
Rahul Jalali
Senior VP of Information Technologies & Chief Information Officerno datano datano data
Scott Moore
Senior VP of Corporate Relations & Chief Administrative Officer2.92yrsno datano data
Craig Richardson
Interim Executive VP & Chief Legal Officer0.25yrno datano data
Clarissa Beyah-Taylor
Chief Communications Officer0.25yrno datano data
Jon Panzer
Senior Vice President of Strategic Planning0.83yrno datano data
Clark Ponthier
Senior Vice President of Supply Chain & Continuous Improvement2.5yrsno datano data
Rick Holmes
Chief Information Security Officer & Assistant VP of Information Assurance2.25yrsno datano data
Mary Jones
VP & Treasurer21.67yrsno datano data

2.3yrs

Average Tenure

57yo

Average Age

Experienced Management: UNP's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lance Fritz
Chairman5.67yrsUS$15.02m0.076%
$ 105.0m
Thomas McLarty
Independent Director14yrsUS$313.11k0.00059%
$ 817.6k
Michael McCarthy
Lead Independent Director4.83yrsUS$356.41k0.0081%
$ 11.3m
Deborah Hopkins
Independent Director3.83yrsUS$297.40k0.00063%
$ 873.0k
David Dillon
Independent Director6.67yrsUS$322.04k0.00059%
$ 817.6k
Jose Villarreal
Independent Director11.83yrsUS$300.75k0.00075%
$ 1.0m
Christopher Williams
Independent Director1yrUS$46.67kno data
Andrew Card
Independent Director14.33yrsUS$300.84k0.0027%
$ 3.8m
William DeLaney
Independent Director2.17yrsUS$298.66k0.0030%
$ 4.1m
Bhavesh Patel
Independent Director3.33yrsUS$306.69k0.00062%
$ 859.2k
Jane Lute
Independent Director4.58yrsUS$321.94k0.00060%
$ 831.4k

4.8yrs

Average Tenure

65yo

Average Age

Experienced Board: UNP's board of directors are considered experienced (4.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Union Pacific Corporation's company bio, 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$138.574b
  • Shares outstanding: 673.87m
  • 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
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

Biography

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, includ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 23:29
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.