Business Analysis of Union Pacific

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Union Pacific

UNION PACIFIC

Business Overview

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates railroads in the United States. It offers transportation services for agricultural products, including grains, commodities produced from grains, and food and beverage products; automotive products, such as finished vehicles and automotive parts; and chemicals comprising industrial chemicals, plastics, fertilizers, petroleum and liquid petroleum gases, crude oil, and soda ash. The company also provides transportation services for coal, petroleum coke, and biomass; industrial products consisting of construction products, minerals, consumer goods, metals, lumber, paper, and other miscellaneous products; and intermodal import and export container traffic. Its rail network includes 32,070 route miles linking the Pacific Coast and Gulf Coast ports with the Midwest and Eastern United States gateways. Union Pacific Corporation was founded in 1862 and is headquartered in Omaha, Nebraska.

Union Pacific

Union Pacific


R&P Rank: 136
Sector: Transportation & Logistics
Industry:Railroad Transportation & Logistics
H.Q Location:Nebraska
Website: www.up.com
Company Address:
1400 DOUGLAS STREET, STOP 0310, OMAHA NE 68179
Ph:402-544-5214

Business Analysis of Union Pacific

The Transportation & Logistics Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Union Pacific compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Union Pacific to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Union Pacific with an interactive chart.

  1. Revenue Growth: Union Pacific reported a revenue growth of -8.6% year-on-year during 2016. Railroad Transportation & Logistics Industry grew at -7.2% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Union Pacific spent 24.5% of its total revenues on COGS. Railroad Transportation & Logistics industry average (COGS share of revenue) in the same period was 28.4%
  3. R&D share of Revenues: Union Pacific R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Union Pacific spent 23.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Railroad Transportation & Logistics industry average SG&A spending in the same period was 30.8%
  5. Inventory share of Revenues: As a percentage of revenue, Union Pacific spent 3.6% of its total revenues on Inventories. Railroad Transportation & Logistics industry average Inventory spending in the same period was 4.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Union Pacific invested 14.5% of its total revenues on Accounts Payable (A/P) Railroad Transportation & Logistics industry average Accounts Payable investment in the same period was 13.7%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Union Pacific invested 6.3% of its total revenues on Accounts Receivable (A/R). Railroad Transportation & Logistics industry average Accounts Receivable investment in the same period was 9.6%
  8. PP&E share of Revenues: As a percentage of revenue, Union Pacific invested 252.7% of its total revenues on Property, Plants, and Equipments (PP&E). Railroad Transportation & Logistics industry average PPE investment in the same period was 248.9%
  9. Intangibles share of Revenues: Union Pacific Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: Union Pacific Net Margins in the year 2016 were 21.2%. Railroad Transportation & Logistics industry average Net Margins in the same period were 17.9%

Sector and Industry Association of Union Pacific

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Union Pacific is associated with Industrials Sector Group, Transportation & Logistics Sector, and Railroad Transportation & Logistics Industry.

Transportation & Logistics sector is comprised of the following industries: Air Delivery & Freight Services; Railroad Transportation & Logistics; Shipping Transportation & Logistics; Trucking Transportation & Logistics. The definitions for each of the industries is as follows:

  • Air Delivery & Freight Services industry includes companies providing Air transportation and logistics products and services to the Industrial sector. It also includes companies that manage airports. Courier and logistic services primarily involving air transportation are also part of this industry.
  • Railroad Transportation & Logistics industry includes companies providing transportation and logistics products and services to the Industrial sector using railroads. It also includes companies that manage train depots.
  • Shipping Transportation & Logistics industry includes companies providing shipping transportation and logistics products and services to the Industrial sector. It also includes companies that manage bridges & tunnels.
  • Trucking Transportation & Logistics industry includes companies providing trucking transportation and logistics products and services to the Industrial sector. It also includes companies that manage roads, bridges, tunnels.

Industry Ranking of Union Pacific

With $19.9 billion revenues, Union Pacific ranked number 1 of all the companies in the US Railroad Transportation & Logistics industry. There were a total of 12 public companies in the US Railroad Transportation & Logistics industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Railroad Transportation & Logistics industry by revenues during 2016 were:

  1. Union Pacific ($19.9 billion)
  2. CSX ($11.1 billion)
  3. Norfolk Southern ($9.9 billion)
  4. Canadian Pacific Railway ($6.2 billion)
  5. Westinghouse Air Brake Technologies ($2.9 billion)
  6. Greenbrier Companies ($2.7 billion)
  7. Kansas City Southern ($2.3 billion)
  8. Genesee & Wyoming ($2 billion)
  9. GATX ($1.4 billion)
  10. American Railcar Industries ($639.1 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Union Pacificand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of union-pacific

CSX (CSX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

CSX Corp with $11 billion revenues in the year 2016 was the number 2 Railroad Transportation & Logistics company. Read this report to know the top competitors of CSX and identify growth and cost optimization opportunities of CSX

Norfolk Southern (NSC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Norfolk Southern Corp with $10 billion revenues in the year 2016 was the number 3 Railroad Transportation & Logistics company. Read this report to know the top competitors of Norfolk Southern and identify growth and cost optimization opportunities of Norfolk Southern

Canadian Pacific Railway (CP) Business Analysis – Analyze Historical Performance, Strategic...

Canadian Pacific Railway Ltd with $6 billion revenues in the year 2016 was the number 4 Railroad Transportation & Logistics company. Read this report to know the top competitors of Canadian Pacific Railway and identify growth and cost optimization opportunities of Canadian Pacific Railway

Westinghouse Air Brake Technologies (WAB) Business Analysis – Analyze Historical Performance,...

Westinghouse Air Brake Technologies Corp with $3 billion revenues in the year 2016 was the number 5 Railroad Transportation & Logistics company. Read this report to know the top competitors of Westinghouse Air Brake Technologies and identify growth and cost optimization opportunities of Westinghouse Air Brake Technologies

Greenbrier Companies (GBX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Greenbrier Companies Inc with $3 billion revenues in the year 2016 was the number 6 Railroad Transportation & Logistics company. Read this report to know the top competitors of Greenbrier Companies and identify growth and cost optimization opportunities of Greenbrier Companies

Kansas City Southern (KSU) Business Analysis – Analyze Historical Performance, Strategic...

Kansas City Southern with $2 billion revenues in the year 2016 was the number 7 Railroad Transportation & Logistics company. Read this report to know the top competitors of Kansas City Southern and identify growth and cost optimization opportunities of Kansas City Southern

Revenues Analysis

Union Pacific (UNP) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Union Pacific Corp (UNP) from 2012 to 2016. Union Pacific generated a total of $19.9 billion revenues during 2016. Union Pacific reported a revenue growth of -8.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in November.

Union Pacific (UNP) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Union Pacific Corp (UNP) from 2002 to 2016. Union Pacific generated a total of $19.9 billion revenues during 2016. Union Pacific reported a revenue growth of -8.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in November.

Union Pacific (UNP) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Union Pacific Corp (UNP) revenue growth with Railroad Transportation & Logistics industry growth during the last five years from 2012 to 2016. Union Pacific reported a revenue growth of -8.6% year-over-year during 2016. The Railroad Transportation & Logistics industry growth was -7.2% year-over-year during 2016. Union Pacific growth was slower than the industry during 2016.

Profit Analysis