Asset Structure Analysis
Union Pacific Railroad Company’s total assets were $67.1 billion and $65.5 billion as of December 31, 2023 and December 31, 2022, respectively.
Properties, net were $57.4 billion as of December 31, 2023, accounting for 85.5% of total assets.
Total current assets were $4.15 billion as of December 31, 2023, making up 6.2% of total assets.
Among total current assets, cash and cash equivalents were $1 billion, and accounts receivable, net were $2.1 billion.
Liquidity and Solvency
Total current liabilities were $5.1 billion as of December 31, 2023.
The current ratio was 0.84 for 2023.
Actually, the company’s liquidity is sufficient, because the collection speed of accounts receivable exceed the payment speed to suppliers.
Total liabilities were $52.3 billion as of December 31, 2023.
Among total liabilities, deferred income taxes were $13.1 billion.
Subtracting the amount of deferred income taxes from total liabilities, the debt ratio was 58.4% for 2023.
Union Pacific Railroad Company’s solvency depend on cash flow, and the cash flow is very good.
Cash provided by operating activities was $8.4 billion, $9.4 billion and $9 billion in 2023, 2022 and 2021, respectively.
Profitability Analysis
Total operating revenues were $24.1 billion, $24.9 billion and $21.8 billion for 2023, 2022 and 2021, respectively.
Total operating revenues in 2023 down up 3.2% year-on-year.
Total operating revenues in 2022 were up 14.2% year-on-year.
Net income was $6.4 billion, $7 billion and $6.5 billion in 2023, 2022 and 2021, respectively.
Union Pacific Railroad Company’s net profit margin was 26.6%, 28.1% and 29.8% in 2023, 2022 and 2021, respectively.
Cash Flow Analysis
Cash provided by operating activities was $8.4 billion, $9.4 billion and $9 billion in 2023, 2022 and 2021, respectively.
Capital investments were $3.6 billion, $3.6 billion and $2.9 billion in 2023, 2022 and 2021, respectively.
Union Pacific Railroad Company’s free cash flow was $4.8 billion, $5.8 billion and $6.1 billion in 2023, 2022 and 2021, respectively.
Dividends paid were $3.17 billion, $3.16 billion and $2.8 billion in 2023, 2022 and 2021, respectively.
Share repurchases programs were $705 million, $6.28 billion and $7.29 billion in 2023, 2022 and 2021, respectively.
The combined amount of dividends paid and share repurchases programs was $3.87 billion, $9.44 billion and $10.1 billion in 2023, 2022 and 2021, respectively.
As you can see, the combined amount in 2022 and 2021 was more than the amount of free cash flow, which is not continued.
Union Pacific Railroad Company’s operating performance for Q1 2024
Union Pacific Railroad Company’s total operating revenues were $6.03 billion and $6.06 billion in Q1 2024 and Q1 2023, respectively.
Net income was $1.64 billion and $1.63 billion in Q1 2024 and Q1 2023, respectively.
Conclusion
We reckon that Union Pacific Railroad Company’s reasonable valuation is about $70 billion, while Union Pacific Railroad Company’s market capitalization is $135.8 billion, which is equivalent to $222.58 per share.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
Union Pacific Railroad Company is the principal operating company of Union Pacific Corporation. One of America’s most recognized companies, Union Pacific Railroad Company connects 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. The Railroad’s diversified business mix includes Bulk, Industrial, and Premium. Union Pacific serves many of the fastest-growing U.S. population centers, operates from all major West Coast and Gulf Coast ports to Eastern gateways, connects with Canada’s rail systems, and is the only railroad serving all six major Mexico gateways. Union Pacific provides value to its roughly 10,000 customers by delivering products in a safe, reliable, fuel-efficient, and environmentally responsible manner.
Union Pacific Corporation was incorporated in Utah in 1969 and maintains its principal executive offices at 1400 Douglas Street, Omaha, NE 68179. The telephone number at that address is (402) 544-5000. The common stock of Union Pacific Corporation is listed on the New York Stock Exchange (NYSE) under the symbol “UNP”.
