About Union Pacific Corporation
Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. It offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, and ethanol and renewable biofuel producers; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers. The company was founded in 1862 and is headquartered in Omaha, Nebraska.
Union Pacific Corporation (UNP) is a Industrials company in the Railroads industry with a market capitalisation of $165.3B. The stock trades at 22.50x trailing earnings and yields 2.09%.
- Sector
- Industrials
- Industry
- Railroads
- Market cap
- $165.3B
- P/E ratio
- 22.50
- Forward P/E
- 19.62
- EPS (TTM)
- $12.37
- Revenue (TTM)
- $25.4B
- Free cash flow
- $4.7B
- Profit margin
- 28.8%
- Dividend yield
- 2.09%
- Beta
- 0.97
- Shares outstanding
- 594.1M
Financial health: Fair5.9/10
6 strengths, 4 concerns. Weakest points: debt to equity, net debt vs cash flow, current ratio and 1 more.
- Debt to equity: 1.72 (Concern, benchmark < 0.5) — Debt of 1.72x equity is high against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 5.6y (Concern, benchmark < 4 years) — Net debt of $30.5B is 5.6x annual free cash flow — about 6 years of cash flow to repay.
- Current ratio: 0.91 (Concern, benchmark > 1.5) — Short-term assets cover only 0.91x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has improved over the last 4 years.
- Return on equity: 39.7% (Strong, benchmark > 15%) — Earns 39.7% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 56.3% (Strong, benchmark > 40%) — Keeps 56.3% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 28.8% (Strong, benchmark > 10%) — Turns 28.8% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $5.5B (Strong, benchmark positive) — Generated $5.5B of free cash flow after capital spending. It has been broadly flat over the last 4 years.
- Revenue growth: 11.5% (Strong, benchmark > 10%) — Revenue changed 11.5% year on year, comfortably past the > 10% mark.
- Earnings growth: 6.6% (Watch, benchmark > 10%) — Earnings changed 6.6% year on year, short of the > 10% mark.
- PEG ratio: 2.72 (Concern, benchmark < 1) — At 2.72, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 44.7% (Strong, benchmark < 60%) — Pays out 44.7% of earnings as dividends, leaving room to keep paying.