Union Pacific offers freight transportation services for agricultural products, including grains, commodities produced from grains, and food and beverage products; automotive products, chemicals, plastics, crude oil, liquid petroleum gases, fertilizers, soda ash, sodium products, and phosphorus rock and sulfur products. The company was founded in 1862 and is based in Omaha, Nebraska.
UNP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Union Pacific Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Union Pacific Corp ranked in the 39th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 29%. The most interesting components of our discounted cash flow analysis for Union Pacific Corp ended up being:
As a business, UNP is generating more cash flow than 97.22% of positive cash flow stocks in the Industrials.
Union Pacific Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 21.87% of tickers in our DCF set.
UNP's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 21.87% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as UNP, try ITW, CODA, FAST, HON, and TRNS.
The Board of Directors of Union Pacific Corporation (NYSE: UNP) has declared a quarterly dividend of 97 cents per share on the company's common stock, payable September 30, 2020, to shareholders of record August 31, 2020.
The latest results from west coast railroad Union Pacific (NYSE: UNP) didn't bring any major near-term surprises, and the stock remains a decent option for income-seeking investors looking for a place to park some cash. The key development in the listed Class 1 U.S. railroads in recent years is how they have been lowering the OR through extensive application of precision scheduled railroading (PSR) management techniques. As 2020 began, all the listed railroads looked set for an improvement in the OR, but the COVID-19 pandemic upended those assumptions.
Union Pacific (UNP) recently reported its second-quarter results with revenue of $4.24 bn missing estimates by ~$100 mn and diluted EPS of $1.67 beating estimates by 9 cents. Second-quarter was tough for Union Pacific. Its volumes declined ~20% year over year due to coronavirus induced shutdowns. Revenues were down even...
Arizona Train Derailment Ignites Massive Fire, Bridge Partially Collapses Tyler Durden Wed, 07/29/2020 - 11:47 A massive fire is burning near Phoenix, Arizona, on Wednesday morning following a freight train derailment on a bridge. Union Pacific said at least ten cars derailed on a bridge over Tempe Town Lake at 6:15 am, reported CBS 5 Phoenix . Video from social media shows scenes of the train derailment on the bridge. Tempe firefighters, paramedics, and police have arrived at the incident area. Authorities are responding to an apparent train derailment and fire on a bridge in Tempe, Arizona. Police asked people to avoid the area. https://t.co/gIKsa7gM8s pic.twitter.com/2HBpaO3MuO — ABC News (@ABC) July 29, 2020 Train derailment in #Tempe this morning. Nearly 100 firefighters battling t...