UNP Union Pacific Corporation
Exchange
NYSESector
TransportationIndustry
RailroadsMarket Cap.
73.966B
Potential Competitive Advantage over the past 10 years
UNP potentially has a competitive advantage.
This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate.
Look at its future prospects to determine sustainability and whether the economic moat will strengthen.
$11.59 of every $100 of Revenue have been pure profit, on average over the past 10 years.
$11.59 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
| 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |
| Net Income | 1.34B | 1.31B | 604.00M | 1.03B | 1.61B | 1.86B | 2.34B | 1.90B | 2.78B | 3.29B |
| divided by | ||||||||||
| Revenue | 12.49B | 11.55B | 12.22B | 13.58B | 15.58B | 16.28B | 17.97B | 14.14B | 16.97B | 19.56B |
| Net Profit Margin | 10.74% | 11.35% | 4.94% | 7.56% | 10.31% | 11.39% | 13.01% | 13.42% | 16.39% | 16.83% |
Strong Pricing Power over the past 10 years
UNP has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold.
This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.
$66.49 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
$66.49 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
| 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |
| Gross Profit | 8.45B | 7.51B | 7.27B | 7.76B | 9.13B | 11.03B | 12.09B | 10.77B | 12.64B | 13.97B |
| divided by | ||||||||||
| Revenue | 12.49B | 11.55B | 12.22B | 13.58B | 15.58B | 16.28B | 17.97B | 14.14B | 16.97B | 19.56B |
| Gross Margin | 67.61% | 65.00% | 59.49% | 57.12% | 58.61% | 67.75% | 67.25% | 76.12% | 74.52% | 71.44% |
High Capital Intensity over the past 10 years
UNP spends large amounts of capital buying new equipment or investing in new facilities to stay competitive.
Over the long term, those costs may have to be fuelled by debt.
Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.
133.03% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
133.03% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
| 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |
| Capital Expenditure | 1.89B | 1.75B | 1.88B | 2.17B | 2.24B | 2.50B | 2.78B | 100.00M | - | 85.00M |
| divided by | ||||||||||
| Net Income | 1.34B | 1.31B | 604.00M | 1.03B | 1.61B | 1.86B | 2.34B | 1.90B | 2.78B | 3.29B |
| Capital Expenditure Ratio | 140.72% | 133.64% | 310.60% | 211.40% | 139.60% | 134.56% | 118.91% | 5.27% | - | 2.58% |