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Market Cap

US$149.9b

Last Updated

2021/05/05 22:02 UTC

Data Sources

Company Financials +

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 limited growth.


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 +/- 3% a week.

Volatility Over Time: UNP's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

UNP

-3.2%

US Transportation

-1.6%

US Market


1 Year Return

44.9%

UNP

66.5%

US Transportation

52.8%

US Market

Return vs Industry: UNP underperformed the US Transportation industry which returned 66.6% over the past year.

Return vs Market: UNP underperformed the US Market which returned 52.4% over the past year.


Shareholder returns

UNPIndustryMarket
7 Day-1.2%-3.2%-1.6%
30 Day0.04%-1.5%1.3%
90 Day9.3%8.6%3.5%
1 Year47.8%44.9%68.9%66.5%55.4%52.8%
3 Year70.3%59.8%74.0%65.1%63.5%53.2%
5 Year195.3%164.6%189.2%165.9%125.8%100.7%

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?

28.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UNP ($223.56) is trading above our estimate of fair value ($212.31)

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


Price To Earnings Ratio

PE vs Industry: UNP's PE Ratio (28.9x) is in line with the US Transportation industry average.

PE vs Market: UNP is poor value based on its PE Ratio (28.9x) compared to the US market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: UNP is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: UNP is overvalued based on its PB Ratio (9.1x) compared to the US Transportation industry average (2.6x).


Future Growth

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

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNP's forecast earnings growth (7.1% per year) is above the savings rate (2%).

Earnings vs Market: UNP's earnings (7.1% per year) are forecast to grow slower than the US market (16% per year).

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

Revenue vs Market: UNP's revenue (4.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: UNP's revenue (4.7% 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 (47%).


Past Performance

How has Union Pacific performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNP has high quality earnings.

Growing Profit Margin: UNP's current net profit margins (27%) are lower than last year (27.8%).


Past Earnings Growth Analysis

Earnings Trend: UNP's earnings have grown by 2.3% 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 (-13.1%) over the past year, making it difficult to compare to the Transportation industry average (11.1%).


Return on Equity

High ROE: Whilst UNP's Return on Equity (32.09%) is high, 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 ($3.7B) do not cover its short term liabilities ($4.9B).

Long Term Liabilities: UNP's short term assets ($3.7B) do not cover its long term liabilities ($40.7B).


Debt to Equity History and Analysis

Debt Level: UNP's debt to equity ratio (161.3%) is considered high.

Reducing Debt: UNP's debt to equity ratio has increased from 74.2% to 161.3% over the past 5 years.

Debt Coverage: UNP's debt is well covered by operating cash flow (31.8%).

Interest Coverage: UNP's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Dividend

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

1.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UNP's dividend (1.74%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: UNP's dividend (1.74%) is low compared to the top 25% of dividend payers in the US market (3.42%).


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 reasonable payout ratio (50.1%), UNP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UNP's dividends in 3 years are forecast to be well covered by earnings (37.1% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Lance Fritz (57 yo)

6.25yrs

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 ($USD16.63M) is above average for companies of similar size in the US market ($USD11.13M).

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 years average tenure).


Board Members

Experienced Board: UNP's board of directors are considered experienced (5.3 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 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$149.913b
  • Shares outstanding: 664.30m
  • Website: https://www.up.com

Number of Employees


Location

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

Listings


Biography

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 prod...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/05 22:02
End of Day Share Price2021/05/05 00:00
Earnings2021/03/31
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.