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Union Pacific Corp UNP

Morningstar Rating
$247.14 +0.55 (0.22%)
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Company Report

Union Pacific's Intermodal Demand Finally Stabilizing, but Cost Inflation a Stubborn Headwind

Since roughly 2018, all the rails have confronted the push to implement precision scheduled railroading, or PSR, if they hadn’t already. Shareholders have demanded it, motivated by PSR’s initial success at Canadian National and Canadian Pacific. Union Pacific is no exception, launching its own PSR efforts in late 2018. UP’s operating ratio (expenses/revenue) was in a better position than other railroads when its rollout started, but PSR has proved to be the surest path to greater network efficiency and higher incremental margins.

Price vs Fair Value

UNP is trading at a 18% premium.
Price
$247.14
Fair Value
$778.00
Uncertainty
Medium
1-Star Price
$355.26
5-Star Price
$496.70
Economic Moat
Kgrpc
Capital Allocation
Kbfhkym

Bulls Say, Bears Say

Bulls

We expect international and domestic intermodal volumes to flip positive this year as retail sector restocking activity improves and truckload competition abates.

Bears

Intermodal pricing headwinds from depressed rates in the competing truckload sector will linger into first half 2024.

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News

Trading Information

Previous Close Price
$246.59
Day Range
$244.87247.32
52-Week Range
$183.69251.65
Bid/Ask
$244.80 / $247.63
Market Cap
$150.70 Bil
Volume/Avg
45 / 2.4 Mil

Key Statistics

Price/Earnings (Normalized)
23.99
Price/Sales
6.33
Dividend Yield (Trailing)
2.10%
Dividend Yield (Forward)
2.10%
Total Yield
2.57%

Company Profile

Omaha, Nebraska-based Union Pacific is the largest public railroad in North America. Operating on more than 30,000 miles of track in the western two thirds of the U.S., UP generated $24 billion of revenue in 2023 by hauling coal, industrial products, intermodal containers, agriculture goods, chemicals, fertilizers, and automotive goods. UP owns about one fourth of Mexican railroad Ferromex and historically derives roughly 10% of its revenue hauling freight to and from Mexico.
Sector
Industrials
Industry
Railroads
Stock Style Box
Large Core
Total Number of Employees
32,973

Competitors

Valuation

Metric
UNP
NSC
CSX
Price/Earnings (Normalized)
23.9921.7820.26
Price/Book Value
10.314.455.97
Price/Sales
6.334.725.08
Price/Cash Flow
17.5820.4113.72
Price/Earnings
UNP
NSC
CSX

Financial Strength

Metric
UNP
NSC
CSX
Quick Ratio
0.621.030.88
Current Ratio
0.811.241.05
Interest Coverage
7.114.216.95
Quick Ratio
UNP
NSC
CSX

Profitability

Metric
UNP
NSC
CSX
Return on Assets (Normalized)
9.63%6.69%8.83%
Return on Equity (Normalized)
47.89%21.05%30.10%
Return on Invested Capital (Normalized)
15.34%11.30%13.72%
Return on Assets
UNP
NSC
CSX
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Railroads Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
CNI
Canadian National Railway CoRskf$82.3 Bil
CP
Canadian Pacific Kansas City LtdMbxv$79.2 Bil
CSX
CSX CorpFlrm$72.2 Bil
NSC
Norfolk Southern CorpYlkq$57.3 Bil
CJPRF
Central Japan Railway CoZkhjld$24.6 Bil
CJPRY
Central Japan Railway Co ADRCpcqhjl$24.6 Bil
WAB
Westinghouse Air Brake Technologies CorpFbgsjyz$23.8 Bil
EJPRF
East Japan Railway CoLgnpzv$22.4 Bil
EJPRY
East Japan Railway Co ADRPlhrrcw$22.4 Bil

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