Bedrijfsoverzicht
Union Pacific Corporation, via its subsidiary Union Pacific Railroad Company, provides essential transportation infrastructure services for various commodities across the United States. The entity specializes in moving grain and grain products, fertilizers, food and refrigerated products, as well as coal and renewables to processors and other downstream entities. Operating within the Industrials sector and specifically the Railroads industry, the company functions as a critical logistical artery for the national economy. With a market capitalization of $148.72B and annual revenue of $24.51B, Union Pacific represents a massive industrial undertaking supported by a workforce of 29287 employees. These valuation and revenue figures underscore the company's position as a dominant player in the freight transportation landscape, reflecting significant scale and established market presence.
Financiële gezondheid
The company reported revenue of $24.51B and net income of $7.14B over the trailing twelve months, while EBITDA stood at $12.44B. The substantial difference between the revenue of $24.51B and net income of $7.14B reveals a highly efficient cost structure where operating expenses and the cost of capital consume approximately 71% of gross revenue to arrive at the bottom line. Free cash flow for the period was $3.92B, indicating that the business generates sufficient liquidity after capital expenditures to fund operations, service debt, and potentially return capital to shareholders without external financing. Profitability is highlighted by a gross margin of 56.4%, an operating margin of 40.9%, and a profit margin of 29.1%, which collectively demonstrate strong pricing power and control over variable costs inherent in the railroad business. The balance sheet shows a cash position of $1.52B against total debt of $32.82B, resulting in a debt-to-equity ratio of 177.73%, which characterizes the firm as highly leveraged rather than conservative. Liquidity is constrained by a current ratio of 0.91, suggesting that current assets are slightly lower than current liabilities, which requires careful management of working capital cycles. Return on Equity stands at 40.4% and return on assets is 9.1%, metrics that indicate management is generating substantial returns relative to the shareholders' equity and the total asset base employed.
Waarderingsbeoordeling
The stock trades with a trailing P/E ratio of 20.93 and a forward P/E of 18.45, implying that the market expects earnings growth to accelerate in the coming year as the forward multiple is lower than the trailing multiple. The price-to-book ratio is 8.05, indicating that the market values the company at a significant premium over its tangible book value, likely due to its valuable infrastructure assets and intangible brand strength. Alternative valuation metrics include a price-to-sales ratio of 6.07 and an EV/EBITDA of 14.47, which suggest the company is valued robustly relative to its revenue generation and enterprise earnings before interest, taxes, depreciation, and amortization. Price action over the last year has oscillated between a 52-week high of $268.14 and a 52-week low of $206.63, providing a clear range for analyzing current market positioning. The beta value of 0.97 indicates that the stock's price volatility moves almost in lockstep with the broader market, exhibiting slightly lower sensitivity to general market fluctuations than a beta of 1.00.
Growth & Income
Revenue growth over the year was -0.6% while earnings growth was 6.8%, demonstrating that profitability improved significantly even as top-line revenue contracted slightly, likely driven by operational efficiencies or favorable fuel rates. As a dividend payer, the company offers a dividend yield of 2.2% with a payout ratio of 45.4%, a level that appears sustainable given the strong earnings growth and high profit margins. The payout ratio of 45.4% allows the firm to retain a substantial portion of its earnings for reinvestment while still maintaining a consistent income stream for shareholders. Overall, Union Pacific presents a profile of moderate revenue contraction offset by robust earnings expansion and a steady, sustainable dividend yield supported by high operational leverage.