Union Pacific Corp

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UNP : NYSE : Services
$90.37 | %
Today's Range: 89.37 - 91.50
Avg. Daily Volume: 3,309,200
10/21/16 - 4:02 PM ET

Financial Analysis

UNION PACIFIC CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. UNION PACIFIC CORP has average liquidity. Currently, the Quick Ratio is 1.10 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.52% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)5174.05562.0
EBITDA ($mil)2472.02715.0
EBIT ($mil)1960.02208.0
Net Income ($mil)1131.01300.0

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)2239.01078.0
Total Assets ($mil)56305.053763.0
Total Debt ($mil)15612.013319.0
Equity ($mil)20284.020599.0

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin47.7848.81
EBITDA Margin47.7748.81
Operating Margin37.8839.7
Sales Turnover0.350.42
Return on Assets7.479.46
Return on Equity20.7324.69
Debt Q3 FY16 Q3 FY15
Current Ratio1.411.12
Interest Expense184.0157.0
Interest Coverage10.6514.06

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)825.2855.72
Div / share0.550.55
Book value / share24.5824.07
Institutional Own % n/a n/a
Avg Daily Volume3322986.04499827.0


BUY. This stock's P/E ratio indicates a premium compared to an average of 17.19 for the Road & Rail industry and a discount compared to the S&P 500 average of 24.64. For additional comparison, its price-to-book ratio of 3.69 indicates a premium versus the S&P 500 average of 2.73 and a premium versus the industry average of 3.38. The price-to-sales ratio is well above both the S&P 500 average and the industry 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 within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
UNP 18.13 Peers 17.19   UNP 10.42 Peers 9.53

Average. An average P/E ratio can signify an industry 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
UNP 15.99 Peers 20.01   UNP NM Peers 4.32

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 discount to its peers.


Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UNP 3.69 Peers 3.38   UNP -13.65 Peers -2.26

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

UNP is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UNP 3.74 Peers 3.16   UNP -12.21 Peers -6.72

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 industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

UNP significantly trails its peers on the basis of sales growth



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