Union Pacific Corp. (UNP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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XPO, Inc.

Landstar System, Inc.

GATX Corp.

Union Pacific Corp.

Norfolk Southern Corp.

CSX Corp.

Why is Union Pacific Corp. ?

High Management Efficiency with a high ROCE of 20.47%

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.65 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.65 times

Poor long term growth as Operating profit has grown by an annual rate 3.81% of over the last 5 years

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 9,856 MM
RAW MATERIAL COST(Y) Fallen by -1.55% (YoY)
DIVIDEND PER SHARE(HY) Highest at USD 12.1

With ROCE of 20.31%, it has a very expensive valuation with a 5.87 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 1.00%, its profits have risen by 5.4% ; the PEG ratio of the company is 6

Underperformed the market in the last 1 year

The stock has generated a return of 1.00% in the last 1 year, much lower than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Union Pacific Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Union Pacific Corp.

-100.0%

0.14

22.45%

S&P 500

15.4%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.84%

EBIT Growth (5y)

3.81%

EBIT to Interest (avg)

7.40

Debt to EBITDA (avg)

2.65

Net Debt to Equity (avg)

1.97

Sales to Capital Employed (avg)

0.50

Tax Ratio

23.33%

Dividend Payout Ratio

47.63%

Pledged Shares

Institutional Holding

81.51%

ROCE (avg)

20.47%

ROE (avg)

45.61%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

15.48

EV to EBIT

28.92

EV to EBITDA

23.08

EV to Capital Employed

5.87

EV to Sales

11.54

PEG Ratio

5.96

Dividend Yield

1.12%

ROCE (Latest)

20.31%

ROE (Latest)

41.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 9,856 MM

RAW MATERIAL COST(Y)

Fallen by -1.55% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 12.1

NET SALES(Q)

Highest at USD 6,154 MM

OPERATING PROFIT(Q)

Highest at USD 3,138 MM

PRE-TAX PROFIT(Q)

Highest at USD 2,313 MM

NET PROFIT(Q)

Highest at USD 1,876 MM

EPS(Q)

Highest at USD 3.15

-4What is not working for the Company

ROCE(HY)

Lowest at 42.36%

INVENTORY TURNOVER RATIO(HY)

Lowest at 16.8 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.1 times

Here's what is working for Union Pacific Corp.

Operating Cash Flow

Highest at USD 9,856 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 6,154 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 3,138 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 2,313 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 1,876 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 3.15

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Dividend per share

Highest at USD 12.1

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -1.55% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Union Pacific Corp.

Inventory Turnover Ratio

Lowest at 16.8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 12.1 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at USD 0.06 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income