Background

13th Stock

Today’s Stock: Union Pacific Corporation (UNP)Today’s Stock: Union Pacific Corporation (UNP)

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. It offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, and ethanol and renewable biofuel producers; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers. The company was founded in 1862 and is headquartered in Omaha, Nebraska.

My Thoughts 💭My Thoughts 💭

Just like CSX if you live in America you know of Union Pacific and seen their branding on rail cars. Like CSX I didn’t know this company was publicly traded.

As part of Ansel’s re industrialization portfolio selecting UP makes sense. Let’s take a look at the fundamentals to determine if the leadership is running this business well and how it compares to Bitcoin.

At 338.8k sats per share ($71,546), and a 7.7k. sat per share yearly dividend. It would take 43 years to break even.

The company trades at a PE 20 which means investors are paying $20 access $1 of earnings. An elevated price but nothing to scare a value investor away completely.

Let’s review some key fundamentals to determine if this stock is worth spending sats on.

PE:PE:

Expected Growth:Expected Growth:

Revenues and expenses:Revenues and expenses:

Balance Sheet:Balance Sheet:

Dividend:Dividend:

Bitcoin per share:Bitcoin per share:

NoneNone

Ownership breakdown :Ownership breakdown :

Leadership:Leadership:

The fundamentals of this company are very decent but nothing exciting. The balance sheet bad riddled with debt, the growth prospects decent at this valuation (projected grow much slower than bitcoin), and pays a good dividend.

Most of the shares are owned by institutions which could be a double edged sword. But for the most part the company is boring.

From a Bitcoiner perspective. Paying 338k sats for one share is a bit steep. The dividend payment and the lower valuation could make this stock worth some sats.

I’m not happy about the balance sheet and leadership paying out dividends and not paying off the debt is bothersome. But in this fiat world for a capital intensive business like railroad I can understand why they use so much leverage.

Here is the performance according to Simply Wall Street

This company is a much better pick than CSX. But I still don’t see why anyone would own this over Bitcoin.

Even with re industrialization and growth jumped from 10% to 30% the PE would go up tremendously which could be good if you add shares at this price but this still lags bitcoin’s projected growth.

Plus railroads are boring I think trucking will have a big boom in this re industrialization but Ansel doesn’t have any trucking stocks.

Using sats on this company would not be a complete waste but I wouldn’t do it on something that might barely beat the inflation that may come down the road. Over the past 5 years holding this company vs. Bitcoin was a massive mistake.