Union Pacific Corporation
Union Pacific Corporation Fundamental Analysis
Union Pacific Corporation (UNP) shows moderate financial fundamentals with a PE ratio of 22.03, profit margin of 29.12%, and ROE of 41.95%. The company generates $24.5B in annual revenue with weak year-over-year growth of 1.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze UNP's fundamental strength across five key dimensions:
Efficiency Score
ExcellentUNP demonstrates superior asset utilization.
Valuation Score
ModerateUNP shows balanced valuation metrics.
Growth Score
WeakUNP faces weak or negative growth trends.
Financial Health Score
WeakUNP carries high financial risk with limited liquidity.
Profitability Score
ExcellentUNP achieves industry-leading margins.
Key Financial Metrics
Is UNP Expensive or Cheap?
P/E Ratio
UNP trades at 22.03 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, UNP's PEG of 13.01 indicates potential overvaluation.
Price to Book
The market values Union Pacific Corporation at 8.51 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.80 times EBITDA. This is generally considered low.
How Well Does UNP Make Money?
Net Profit Margin
For every $100 in sales, Union Pacific Corporation keeps $29.12 as profit after all expenses.
Operating Margin
Core operations generate 40.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $41.95 in profit for every $100 of shareholder equity.
ROA
Union Pacific Corporation generates $10.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Union Pacific Corporation generates strong operating cash flow of $9.30B, reflecting robust business health.
Free Cash Flow
Union Pacific Corporation generates strong free cash flow of $5.51B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.28 in free cash annually.
FCF Yield
UNP converts 3.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.008
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.42
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How UNP Stacks Against Its Sector Peers
| Metric | UNP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.03 | 26.76 | Better (Cheaper) |
| ROE | 41.95% | 1300.00% | Weak |
| Net Margin | 29.12% | -29570.00% (disorted) | Strong |
| Debt/Equity | 1.72 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.91 | 10.68 | Weak Liquidity |
| ROA | 10.24% | -1545134.00% (disorted) | Strong |
UNP outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Union Pacific Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.44%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
52.54%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-100.00%
Industry Style: Cyclical, Value, Infrastructure
Declining