Union Pacific Stock Quote and Investment Analysis

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Union Pacific is one of the largest railroads in the US, with a market capitalization of over $150 billion. It operates over 32,000 miles of track in 23 states.

The company has a strong financial foundation, with a debt-to-equity ratio of around 0.5. This indicates that Union Pacific has a manageable level of debt.

Union Pacific's stock price has been steadily increasing over the years, with a five-year average annual return of around 10%. This is a testament to the company's consistent performance and growth.

Investors can access Union Pacific's stock through various exchanges, including the New York Stock Exchange (NYSE) under the ticker symbol UNP.

Stock Information

Union Pacific's stock information is publicly available, and one way to access it is through the company's official website.

Union Pacific's stock is listed on the New York Stock Exchange (NYSE) under the ticker symbol UNP.

The company's stock price can fluctuate based on various market and economic factors, including supply and demand, interest rates, and global events.

Railroad Tracks
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As of our last update, Union Pacific's stock price was around $250 per share, but please note that stock prices can change rapidly.

Union Pacific's stock has historically been a stable investment choice, with a moderate level of risk compared to other stocks in the industry.

The company's stock has a beta value of 1.2, which indicates a moderate level of volatility compared to the overall market.

Financial Performance

Union Pacific's financial performance has been impressive, with a Return on Assets (Normalized) of 9.87% as of September 30, 2021. This indicates a strong ability to generate profits from its assets.

The company's Return on Equity (Normalized) was 42.80% during the same period, significantly higher than its peers CSX and CNI. This suggests that Union Pacific is generating a substantial amount of profit from its equity.

Union Pacific's revenue is expected to increase to $25,153 million by 2025, with a projected growth rate of 2.36% in 2025. The company's dividend is also expected to increase to $7.06 per share by 2028.

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Here's a breakdown of Union Pacific's estimated financial performance for the next few years:

Union Pacific's estimated earnings per share (EPS) is expected to grow from $12.10 in 2025 to $16.80 in 2028. The company's P/E ratio is also expected to decrease from 18.94 in 2025 to 13.64 in 2028.

The company's net profit is expected to increase from $7,194 million in 2025 to $9,104 million in 2028. Free cash flow is also expected to increase from $5,882 million in 2025 to $8,284 million in 2028.

Union Pacific's net debt is expected to increase from $30,698 million in 2025 to $34,501 million in 2027.

Investment and Analysis

Union Pacific is a solid passive income play to consider now. This means it has the potential to provide regular income without requiring a lot of active management.

Investing in railroad stocks like Union Pacific can be a smart move for those looking for a stable and relatively low-risk investment. Historically, railroad companies have been able to maintain steady profits even during economic downturns.

Union Pacific has a long history of success, and its stock has been a reliable performer over the years.

Investing in Rail Stocks

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If you're considering investing in railroad stocks, Union Pacific is definitely worth a look.

Union Pacific has been a solid passive income play for some time now, making it a great option for those looking for a relatively stable investment.

However, it's worth noting that Union Pacific's stock price has taken a hit recently, with a 1-year return of -3.11%.

On a longer-term basis, though, Union Pacific has been a real winner, with a 5-year return of +41.25% and a 5-year annualized return of +7.15%.

To put that in perspective, if you had invested in Union Pacific when it first went public, your returns would be a staggering +97,351%.

For comparison, the S&P 500 has returned +24.74% over the past year, +81.42% over the past 5 years, and +12.64% annualized over the same period.

Valuation

When analyzing the valuation of a company, several key metrics come into play.

UNP, CSX, and CNI are all major players in the rail transportation industry, and their valuation metrics are worth examining.

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The price-to-earnings (P/E) ratio is a fundamental metric that helps investors understand the value of a company. UNP's normalized P/E ratio is 21.04, which is significantly higher than CSX's 17.35 and CNI's 18.99.

A lower P/E ratio can indicate that a company's stock is undervalued, making it a potential buying opportunity. In this case, CSX appears to be the most undervalued of the three companies.

Another key metric is the price-to-book (P/B) ratio, which measures a company's stock price relative to its book value. UNP's P/B ratio is 8.38, while CSX's is 4.80 and CNI's is 4.45.

A lower P/B ratio can indicate that a company's stock price is relatively low compared to its assets. In this case, CSX and CNI appear to be the most undervalued based on this metric.

Here's a comparison of the valuation metrics for the three companies:

The price-to-sales (P/S) ratio measures a company's stock price relative to its revenue. UNP's P/S ratio is 5.75, while CSX's is 4.28 and CNI's is 5.16.

Finally, the price-to-cash flow (P/CF) ratio measures a company's stock price relative to its cash flow. UNP's P/CF ratio is 15.37, while CSX's is 12.09 and CNI's is 12.76.

By analyzing these valuation metrics, investors can get a better sense of which company is the most undervalued and potentially offers the best buying opportunity.

Analyst Opinions

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Many experts believe that the current market trends are unsustainable and a correction is overdue.

Goldman Sachs predicts a 10% decline in the market within the next quarter, citing overvaluation and excessive speculation.

Analysts at Morgan Stanley agree, warning of a potential bubble in the tech sector.

The consensus among analysts is that the market needs a correction to return to a more stable growth trajectory.

According to a recent survey, 75% of analysts believe that interest rates will rise within the next year, impacting the stock market.

Some analysts are calling for a more cautious approach, recommending a balanced portfolio with a mix of high-growth and low-risk investments.

A recent report by Citigroup suggests that the global economy is showing signs of slowing down, which could impact investor confidence.

Management

The management team at Union Pacific is a seasoned group of professionals with a wealth of experience in their respective fields.

Lance M. Fritz serves as the Chairman, President & Chief Executive Officer, overseeing the overall strategy and direction of the company.

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Jennifer L. Hamann is the Chief Financial Officer & Executive Vice President, responsible for managing the company's finances and making key financial decisions.

Rahul Jalali is the Chief Information Officer & Executive VP, leading the company's technology and information systems.

Kenyatta G. Rocker is the Executive Vice President-Marketing & Sales, responsible for developing and implementing the company's marketing and sales strategies.

Eric J. Gehringer is the Executive Vice President-Operations, overseeing the day-to-day operations of the company.

Elizabeth F. Whited is the Executive Vice President-Sustainability & Strategy, focusing on the company's sustainability and strategic initiatives.

Michael Robert McCarthy serves as the Lead Independent Director, providing guidance and oversight to the company's board of directors.

Here is a list of the company's executive team:

The company also has a number of independent directors who provide guidance and oversight to the board of directors.

Sector Comparison: Industrials Transportation Freight & Logistics

The Industrials Transportation Freight & Logistics sector has been a bit of a rollercoaster ride lately. Union Pacific Corporation, a major player in this sector, has seen a 1.04% increase in its stock price over the past 5 days.

Credit: youtube.com, Union Pacific (UNP) Fundamental Stock Analysis - Value Investing - Railroad Stock

Let's take a closer look at how the sector as a whole is performing. The average stock price change for the sector over the past 5 days is -0.36%, indicating a slight decline.

Here are the top 7 companies in the sector, along with their stock price changes over the past 5 days:

The weighted average stock price change for the sector, based on market capitalization, is +0.57% over the past 5 days. This suggests that the sector as a whole is performing relatively well, despite some individual companies experiencing declines.

News and Events

Union Pacific has a history of releasing its earnings reports on a quarterly basis. The most recent report was for Q3 2024, which was released on October 24, 2024, with an actual EPS of 2.750 USD.

The company's Q2 2024 earnings release was on July 25, 2024, with an actual EPS of 2.740 USD. This was a slight decrease from the Q1 2024 earnings release, which was on April 25, 2024, with an actual EPS of 2.690 USD.

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Union Pacific also holds annual general meetings, with the most recent one being on May 9, 2024. The company's Q4 2023 earnings release was on January 25, 2024, with an actual EPS of 2.710 USD.

Here's a summary of Union Pacific's recent earnings reports:

The company's earnings reports have shown a range of actual EPS, from 2.510 USD in Q3 2023 to 3.050 USD in Q3 2022.

Frequently Asked Questions

Does Warren Buffett own Union Pacific stock?

Warren Buffett previously owned Union Pacific stock, but sold all his shares in Q4 2009. He no longer holds any Union Pacific stock.

Is UNP a buy hold or sell?

UNP is considered a "moderate buy" by Wall Street analysts, with 11 buy and 1 strong buy ratings. However, 8 analysts recommend holding the stock, suggesting a cautious approach.

What is the 5 year return of UNP?

The 5-year total return of UNP is 41.07%, meaning a $100 investment 5 years ago would be worth $141.07 today. This impressive return is a result of both price appreciation and reinvested dividends.

Matthew McKenzie

Lead Writer

Matthew McKenzie is a seasoned writer with a passion for finance and technology. He has honed his skills in crafting engaging content that educates and informs readers on various topics related to the stock market. Matthew's expertise lies in breaking down complex concepts into easily digestible information, making him a sought-after writer in the finance niche.

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