Union Pacific Return On Equity vs. Net Income
| UNP Stock | EUR 217.10 0.50 0.23% |
For Union Pacific profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Union Pacific to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Union Pacific utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Union Pacific's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Union Pacific over time as well as its relative position and ranking within its peers.
Union |
Union Pacific Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Union Pacific's current stock value. Our valuation model uses many indicators to compare Union Pacific value to that of its competitors to determine the firm's financial worth. Union Pacific is rated second in return on equity category among its peers. It is rated fourth in net income category among its peers making up about 13,161,557,269 of Net Income per Return On Equity. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Union Pacific's earnings, one of the primary drivers of an investment's value.Union Net Income vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Union Pacific |
| = | 0.53 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Union Pacific |
| = | 7 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Union Net Income Comparison
Union Pacific is rated third in net income category among its peers.
Union Pacific Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Union Pacific, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Union Pacific will eventually generate negative long term returns. The profitability progress is the general direction of Union Pacific's change in net profit over the period of time. It can combine multiple indicators of Union Pacific, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, engages in the railroad business in the United States. The company was founded in 1862 and is headquartered in Omaha, Nebraska. UNION PAC operates under Railroads classification in Germany and is traded on Frankfurt Stock Exchange. It employs 29910 people.
Union Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Union Pacific. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Union Pacific position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Union Pacific's important profitability drivers and their relationship over time.
Use Union Pacific in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Union Pacific position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Union Pacific will appreciate offsetting losses from the drop in the long position's value.Union Pacific Pair Trading
Union Pacific Pair Trading Analysis
The ability to find closely correlated positions to Union Pacific could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Union Pacific when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Union Pacific - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Union Pacific to buy it.
The correlation of Union Pacific is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Union Pacific moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Union Pacific moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Union Pacific can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Union Pacific position
In addition to having Union Pacific in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Broad Sovereign ETFs Thematic Idea Now
Broad Sovereign ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Broad Sovereign ETFs theme has 14 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Broad Sovereign ETFs Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Information and Resources on Investing in Union Stock
When determining whether Union Pacific is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Union Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Union Pacific Stock. Highlighted below are key reports to facilitate an investment decision about Union Pacific Stock:Check out World Market Map. For more detail on how to invest in Union Stock please use our How to Invest in Union Pacific guide.You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
To fully project Union Pacific's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Union Pacific at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Union Pacific's income statement, its balance sheet, and the statement of cash flows.