Union Pacific Stock Analysis, Valuation (NYSE:UNP)

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$149.25 $0.27 (0.18%) UNP stock closing price Aug 16, 2018 (Closing)

View the Union Pacific stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for UNP stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Union Pacific Corporation Stock Rating 3.7/5

Amigobulls UNP stock analysis uses latest quarter 2018 Q2 financial data like Union Pacific revenue growth, profit margins and cash flows. Union Pacific valuation forms a crucial part of our stock analysis. Union Pacific stock rating is our opinion about the business fundamentals of the company.

Should you buy UNP stock?

  • Union Pacific's average operating margin of 37.72 was exceptional.
  • LTM Net margins were good at 51.3% for Union Pacific.
  • Union Pacific generates a high return on invested capital of 13.5.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Union Pacific at 52.3.
  • The company has a good Free Cash Flow (FCF) margin of 25.5.

Should you sell UNP stock?

  • Over the last 5 years, the company registered a poor revenue growth of 0.6.
  • The company is trading at a price to sales multiple of 5.2, which is overvalued in comparison to the Transportation sector average multiple of 1.4.

Comments on this video and Union Pacific stock

Investors can use Amigobulls Union Pacific stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

Union Pacific revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Union Pacific stock.