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Union Pacific Corporation Case Study: Company Analysis

Written Report about (Union Pacific Corporation)

Company Description, Ratio Analysis, Bonds, Stock weekly holding period returns and Stock beta.

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Company Description
Union Pacific Corporation (NYSE: UNP) operates the largest railroad system in the United States with over 32,000 miles through its subsidiary, Union Pacific Railroad Company. Its rails serve the western two-thirds of the US linking the Pacific Coast and Gulf Coast ports with the Midwest and eastern United States gateways, and also some portions of Mexico. With this fact, it can be deduced that UNP operates within the industrials sector, specifically the railroads industry.
Moreover, of the several players within the industry, UNP is the largest in terms of market capitalization at over $47 billion seconded by Canadian National Railway Company (NYSE: CNI) with almost $34 billion in capitalization. Below is a table enumerating the different competitors of the company with their corresponding market capitalization.

Table 1. Railroad Industry Players Ranked by Market Capitalization
Company Name Market Traded Ticker Market Value-Total ($M)
UNION PACIFIC CORP. NYSE UNP
47,056.53
CANADIAN NATIONAL RAILWAY COMPANY NYSE CNI
33,740.92
NORFOLK SOUTHERN CORP. NYSE NSC
24,545.88
CSX CORP. NYSE CSX
23,942.86
MTR CORPORATION LIMITED Pink Sheets' MTRJY
18,077.54
CANADIAN PACIFIC RAILWAY LIMITED NYSE CP
10,091.15
KANSAS CITY SOUTHERN NYSE KSU
6,752.11
GUANGSHEN RAILWAY CO. LTD. NYSE GSH
2,337.56
GENESEE & WYOMING INC. NYSE GWR
2,249.01
RAILAMERICA, INC. NYSE RA
738.13
PROVIDENCE & WORCESTER RAILROAD CO.
Nasdaq PWX
58.22

UNP provides a varied collection of services including freight transportation services for agricultural products, including whole grains and related commodities, food, and beverage products; automotive products; chemicals, such as industrial chemicals, plastics, and liquid petroleum products; energy products; industrial products; and intermodal containers.

Ratio Analysis
2010 2009
Liquidity ratio
1. Current ratio 1.16 1.37
2. Quick ratio 0.98 1.20
Profitability ratio
3. Profit margin 16.39% 13.36%
4. Operating profit margin 29.36% 23.89%
Market ratios
5. Dividends per share 1.31 1.08
6. Dividend yield 1.80% 1.90%
Debt ratios
7. Debt ratio 0.59 0.60
8. Debt to equity ratio 1.43 1.51
Activity ratios
9. Asset turnover 2.54 2.98
10. Receivables ...

Solution Summary

The solution provides a company analysis to the Union Pacific Corporation case study.

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