Union Pacific logged a 0.4% change during today's afternoon session, and is now trading at a price of $200.17 per share.
Union Pacific shares moved -19.3% over the last 52 weeks, with a high of $250.52 and a low of $183.69. During this time, the stock lagged the S&P 500 index by -12.0%. As of January 2022, the company's 50-day average price is $199.13. Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The large-cap Industrials company has 30,717 full time employees and is based in Omaha, NE. Union Pacific has returned a 2.5% dividend yield over the last 12 months.
Snapshot of the Company's Strong operating Margins:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $21,708 | $19,533 | $21,804 | $24,875 |
| Revenue Growth | n/a | -10.02% | 11.63% | 14.08% |
| Gross Margins | 44.3% | 47.0% | 48.2% | 45.0% |
| Gross Margins Growth | n/a | 6.09% | 2.55% | -6.64% |
| Operating Margins | 39.4% | 40.1% | 42.8% | 39.9% |
| Operating Margins Growth | n/a | 1.78% | 6.73% | -6.78% |
| Net Margins | 27.27% | 27.38% | 29.92% | 28.13% |
| Net Margins Growth | n/a | 0.4% | 9.28% | -5.98% |
| Earnings Per Share | $8.38 | $7.88 | $9.95 | $11.2 |
| EPS Growth | n/a | -5.97% | 26.27% | 12.56% |
| Diluted Shares (MM) | 706 | 679 | 655 | 610 |
| Free Cash Flow (MM) | $5,156 | $5,613 | $6,096 | $5,742 |
| FCF Growth | n/a | 8.86% | 8.61% | -5.81% |
| Capital Expenditures (MM) | -$3,453 | -$2,927 | -$2,936 | -$3,620 |
| Net Debt / EBITDA | 2.21 | 2.41 | 2.43 | 2.57 |
Union Pacific Is Too Expensive at Current Levels:
Compared to the Industrials sector's average of 20.49, Union Pacific has a trailing twelve month P/E ratio of 17.9 and, according to its EPS guidance of 12.53, an expected P/E ratio of 16.0. Union Pacific's PEG ratio is 2.12 based on its 8.4% compound average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.
Union Pacific's P/B ratio is 10.1 compared to its sector average of 3.78. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 209.7% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 9.35 * 19.861) = $64.64
Union Pacific Is the Subject of Mixed Market Indicators:
27 analysts are following Union Pacific and have set target prices ranging from $176.0 to $245.0 per share. On average, they have given the company a rating of buy. At the current price of $200.17, UNP is trading -9.15% away from its average analyst target price of $220.33 per share, implying an analyst consensus of some upside potential for the stock.
The company has a very low short interest since 1.0% of the company's shares are tied to short positions. Institutions own 81.1% of Union Pacific's shares, while the insider ownership rate stands at 0.24%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $10,862,470,559.
