Union Pacific CorporationFind Ratings Reports
UNION PACIFIC CORP's gross profit margin for the first quarter of its fiscal year 2021 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the subsector, the revenue growth did not. UNION PACIFIC CORP has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.64% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q1 FY21||Q1 FY20|
|Net Sales ($mil)||5001.0||5229.0|
|Net Income ($mil)||1341.0||1474.0|
|Balance Sheet||Q1 FY21||Q1 FY20|
|Cash & Equiv. ($mil)||1246.0||1255.0|
|Total Assets ($mil)||61793.0||62216.0|
|Total Debt ($mil)||28147.0||29541.0|
|Profitability||Q1 FY21||Q1 FY20|
|Gross Profit Margin||50.83||51.44|
|Return on Assets||8.44||9.64|
|Return on Equity||32.09||37.53|
|Debt||Q1 FY21||Q1 FY20|
|Share Data||Q1 FY21||Q1 FY20|
|Shares outstanding (mil)||665.14||678.56|
|Div / share||0.97||0.97|
|Book value / share||24.44||23.57|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2811642.0||2772561.0|
BUY. The current P/E ratio indicates a premium compared to an average of 27.84 for the Rail Transportation subsector and a significant discount compared to the S&P 500 average of 44.74. For additional comparison, its price-to-book ratio of 9.19 indicates a significant premium versus the S&P 500 average of 4.43 and a significant premium versus the subsector average of 6.84. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, UNION PACIFIC CORP proves to trade at a premium to investment alternatives.
|UNP 29.04||Peers 29.57||UNP 17.97||Peers 16.64|
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation.
UNP is trading at a valuation on par with its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
UNP is trading at a valuation on par to its peers.
|UNP 20.77||Peers 50.83||UNP 1.40||Peers 1.16|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
UNP is trading at a significant discount to its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
UNP trades at a premium to its peers.
|UNP 9.19||Peers 6.84||UNP -10.23||Peers 2.04|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
UNP is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, UNP is expected to significantly trail its peers on the basis of its earnings growth rate.
|UNP 7.73||Peers 6.92||UNP -10.44||Peers -4.79|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
UNP is trading at a premium to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
UNP significantly trails its peers on the basis of sales growth.