Union Pacific Intrinsic Stock Value – Deutsche Bank Gives Union Pacific Corp. a ‘Buy’ Rating
December 6, 2023
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Union Pacific ($NYSE:UNP) Corp. recently received a Buy rating from Deutsche Bank, according to the Knox Daily. In addition, the company offers intermodal and merchandise services, as well as rail-related engineering and maintenance services.
Stock Price
Deutsche Bank has given Union Pacific Corp. a ‘Buy’ rating on Monday, with stock opening at $230.8 and closing at $233.9, up by 1.1% from preceding closing price of $231.4. This rating was given on the back of the company’s better-than-expected performance over the past few quarters and the positive outlook for the future. This marks a significant endorsement from one of the leading banks for one of the largest railroad companies in the United States. Investors are likely to take this news into consideration when making their decision to invest in Union Pacific Corp. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Union Pacific. More…
| Total Revenues | Net Income | Net Margin |
| 24.14k | 6.37k | 25.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Union Pacific. More…
| Operations | Investing | Financing |
| 8.28k | -3.56k | -5.22k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Union Pacific. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 66.54k | 52.54k | 22.97 |
Key Ratios Snapshot
Some of the financial key ratios for Union Pacific are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.2% | 4.7% | 39.6% |
| FCF Margin | ROE | ROA |
| 19.7% | 43.9% | 9.0% |
Analysis – Union Pacific Intrinsic Stock Value
At GoodWhale, we’ve had a close look at UNION PACIFIC‘s financials, and our proprietary Valuation Line indicates that the fair value of UNION PACIFIC’s share is around $241.0. However, the stock is currently trading at $233.9, meaning it is undervalued by 2.9%. This presents an opportunity for investors to pick up the stock at a price lower than its fair value. More…
Peers
The railroad industry in North America is highly competitive, with Union Pacific Corp (UP) facing off against Canadian Pacific Railway Ltd (CP), CSX Corp (CSX), and Norfolk Southern Corp (NSC) for market share. All four companies are well-positioned to compete for business, and each has its own strengths and weaknesses. UP is the largest railroad in North America, and it has a strong presence in the western United States. CP is the largest railroad in Canada, and it has a strong presence in the eastern United States. CSX is a strong competitor in the eastern United States, while NSC is a strong competitor in the southern United States.
– Canadian Pacific Railway Ltd ($TSX:CP)
Canadian Pacific Railway Ltd. has a market cap of $90.72 billion as of 2022. It has a return on equity of 6.42%. The company operates in the rail transportation industry. It provides freight transportation services in Canada and the United States.
– CSX Corp ($NASDAQ:CSX)
CSX Corporation is an American publicly traded transportation company headquartered in Jacksonville, Florida. The company operates 21,000 route miles of track in 23 states, the District of Columbia, and two Canadian provinces. CSX’s intermodal facilities connect customers to railroads throughout North America.
As of 2022, CSX’s market cap is $57.98 billion and its ROE is 34.03%. The company’s strong financials and large market share make it a transportation industry leader.
– Norfolk Southern Corp ($NYSE:NSC)
Norfolk Southern Corp is a publicly traded company with a market capitalization of $48.12B as of 2022. The company has a strong return on equity of 21.78%. Norfolk Southern is primarily a transportation company that operates in the eastern United States. The company operates railroads and provides related logistics services.
Summary
Union Pacific Corp. has been given a Buy rating by Deutsche Bank, indicating that the stock may be a good investment opportunity. Analysts have noted that Union Pacific’s strong balance sheet and solid cash flow position should help them to be more resilient in an economic downturn.
Additionally, recent acquisitions should help to expand its geographic footprint and diversify its revenue base. Investors should note that the company is exposed to cyclical economic conditions, and it is heavily reliant on freight demand from large industrial customers. In general, analysts view Union Pacific as a solid long-term investment, although they would advise caution in the near term given the current economic outlook.
