| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 2/6 |
| Dividends | 5/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$215.26 |
| 52 Week High | US$278.94 |
| 52 Week Low | US$195.68 |
| Beta | 1.21 |
| 1 Month Change | -4.49% |
| 3 Month Change | -17.20% |
| 1 Year Change | -4.21% |
| 3 Year Change | 26.60% |
| 5 Year Change | 98.67% |
| Change since IPO | 2,059.35% |
Recent News & Updates
Union Pacific: A Worthy Core Portfolio Forever Holding
Since being added in 2010 to our family portfolio, Union Pacific's common shares have outperformed its industry, sector, and market. Union Pacific arguably presents the highest quality business model of the North American freight rail oligopoly. The stock’s combined shareholder yields outperformed the rising 10-Year Treasury, and the company benefits from superior executive management performance. Valuation multiples suggest a premium stock price, and downside risk is average at best because of under-coverage of short- and long-term debt levels, typical of a railroad. Nonetheless, as a wide-moat, fundamentally sound, high-margin dividend-payer, Union Pacific should be a core forever holding in any quality stock portfolio.
Union Pacific Corporation Now A Buy
The shares have dropped massively in price since I last reviewed them, and they're now cheap enough to be compelling. As you know, the company has an unassailable "moat", and the financial performance has been (mostly) impressive. For those who want to enhance their returns further while reducing their risk, I recommend selling put options.
Does Union Pacific (NYSE:UNP) Have A Healthy Balance Sheet?
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Union Pacific: A Closer Look At Opportunities And Headwinds
Union Pacific lowered its operating efficiency estimates as it continues to struggle with supply chain problems and inflationary headwinds. Like its peers, the railroad needs to improve operations to service demand. The company continues to be in a good spot to improve its earnings despite economic headwinds. Even if economic indicators continue to deteriorate, UNP investors should add on weakness to benefit from its ability to reward shareholders with high dividend growth and buybacks.
Shareholder Returns
| UNP | US Transportation | US Market | |
|---|---|---|---|
| 7D | -0.2% | -2.3% | -2.5% |
| 1Y | -4.2% | -35.2% | -21.2% |
Return vs Industry: UNP exceeded the US Transportation industry which returned -35.2% over the past year.
Return vs Market: UNP exceeded the US Market which returned -21.2% over the past year.
Price Volatility
| UNP volatility | |
|---|---|
| UNP Average Weekly Movement | 3.6% |
| Transportation Industry Average Movement | 8.7% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 3.3% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1862 | 30,189 | Lance Fritz | https://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
| UNP fundamental statistics | |
|---|---|
| Market Cap | US$135.19b |
| Earnings (TTM) | US$6.81b |
| Revenue (TTM) | US$22.66b |
19.8x
P/E Ratio6.0x
P/S RatioIs UNP overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| UNP income statement (TTM) | |
|---|---|
| Revenue | US$22.66b |
| Cost of Revenue | US$9.49b |
| Gross Profit | US$13.17b |
| Other Expenses | US$6.36b |
| Earnings | US$6.81b |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Jul 21, 2022
| Earnings per share (EPS) | 10.85 |
| Gross Margin | 58.11% |
| Net Profit Margin | 30.06% |
| Debt/Equity Ratio | 268.4% |
How did UNP perform over the long term?
See historical performance and comparisonDividends
2.4%
Current Dividend Yield43%
Payout RatioValuation
Is UNP undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation 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
PEG Ratio
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.
| What is UNP's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$135.19b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 7.4x |
| Enterprise Value/EBITDA | 14x |
| PEG Ratio | 3.1x |
Price to Earnings Ratio vs Peers
How does UNP's PE Ratio compare to its peers?
| UNP PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 18.8x | ||
CSX CSX | 16.2x | 4.4% | US$63.8b |
NSC Norfolk Southern | 18x | 5.8% | US$54.5b |
UPS United Parcel Service | 15x | 2.7% | US$161.6b |
ODFL Old Dominion Freight Line | 26.1x | 6.6% | US$29.6b |
UNP Union Pacific | 19.8x | 6.4% | US$135.2b |
Price-To-Earnings vs Peers: UNP is expensive based on its Price-To-Earnings Ratio (19.8x) compared to the peer average (18.8x).
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 (19.8x) compared to the US Transportation industry average (9.5x)
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 19.8x |
| Fair PE Ratio | 21.2x |
Price-To-Earnings vs Fair Ratio: UNP is good value based on its Price-To-Earnings Ratio (19.8x) compared to the estimated Fair Price-To-Earnings Ratio (21.2x).
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 ($215.26) is trading below our estimate of fair value ($286.01)
Significantly Below Fair Value: UNP is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: UNP is poor value based on its PEG Ratio (3.1x)
Discover undervalued companies
Future Growth
How is Union Pacific forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
Future Growth Score
2/6Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
6.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UNP's forecast earnings growth (6.4% per year) is above the savings rate (1.9%).
Earnings vs Market: UNP's earnings (6.4% per year) are forecast to grow slower than the US market (13.6% per year).
High Growth Earnings: UNP's earnings are forecast to grow, but not significantly.
Revenue vs Market: UNP's revenue (4.1% per year) is forecast to grow slower than the US market (8.2% per year).
High Growth Revenue: UNP's revenue (4.1% 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 (65.4%).
Discover growth companies
Past Performance
How has Union Pacific performed over the past 5 years?
Past Performance Score
3/6Past Performance Score 3/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-5.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UNP has high quality earnings.
Growing Profit Margin: UNP's current net profit margins (30.1%) are higher than last year (27%).
Past Earnings Growth Analysis
Earnings Trend: UNP's earnings have declined by 5.3% per year over the past 5 years.
Accelerating Growth: UNP's earnings growth over the past year (30.6%) exceeds its 5-year average (-5.3% per year).
Earnings vs Industry: UNP earnings growth over the past year (30.6%) underperformed the Transportation industry 83.9%.
Return on Equity
High ROE: Whilst UNP's Return on Equity (57.26%) is outstanding, this metric is skewed due to their high level of debt.
Discover strong past performing companies
Financial Health
How is Union Pacific's financial position?
Financial Health Score
2/6Financial 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 ($3.9B) do not cover its short term liabilities ($5.5B).
Long Term Liabilities: UNP's short term assets ($3.9B) do not cover its long term liabilities ($46.7B).
Debt to Equity History and Analysis
Debt Level: UNP's net debt to equity ratio (260.4%) is considered high.
Reducing Debt: UNP's debt to equity ratio has increased from 76.3% to 268.4% over the past 5 years.
Debt Coverage: UNP's debt is well covered by operating cash flow (29.2%).
Interest Coverage: UNP's interest payments on its debt are well covered by EBIT (8.4x coverage).
Balance Sheet
Discover healthy companies
Dividend
What is Union Pacific current dividend yield, its reliability and sustainability?
Dividend Score
5/6Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
2.42%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: UNP's dividend (2.42%) is higher than the bottom 25% of dividend payers in the US market (1.6%).
High Dividend: UNP's dividend (2.42%) is low compared to the top 25% of dividend payers in the US market (4.25%).
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 (42.6%), UNP's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (53.9%), UNP's dividend payments are covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Lance Fritz (59 yo)
8.42yrs
Tenure
US$14,523,819
Compensation
Mr. Lance M. Fritz serves as Independent Director at Parker-Hannifin Corporation since January 27, 2021. Mr. Fritz serves as Chief Executive Officer, Chairman, and President of Union Pacific Corporation an...
CEO Compensation Analysis
Compensation vs Market: Lance's total compensation ($USD14.52M) is about average for companies of similar size in the US market ($USD13.43M).
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 (2.2 years average tenure).
Board Members
Experienced Board: UNP's board of directors are considered experienced (5.9 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
- Implied Market Cap: US$135.189b
- Shares outstanding: 628.03m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/07/03 00:00 |
| End of Day Share Price | 2022/07/01 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.