Union Pacific Corp. (NYSE:UNP)

Net Income

The net income shows a generally upward trend from 2020 to 2024. Starting at 5,349 million US dollars in 2020, it increased significantly to 6,523 million in 2021 and then to 6,998 million in 2022. There was a decline in 2023 to 6,379 million, followed by a recovery to 6,747 million in 2024. This pattern indicates overall growth with a slight dip in 2023.

Earnings Before Tax (EBT)

EBT follows a similar upward trajectory as net income, rising from 6,980 million US dollars in 2020 to 8,478 million in 2021 and further to 9,072 million in 2022. In 2023, it decreased to 8,233 million but rebounded to 8,794 million in 2024. This variation mirrors the net income trend, suggesting consistent operational performance impacted by factors influencing tax and expenses.

Earnings Before Interest and Tax (EBIT)

EBIT demonstrated growth from 8,121 million US dollars in 2020 to 9,635 million in 2021 and 10,343 million in 2022. However, it declined to 9,573 million in 2023 before increasing again to 10,063 million in 2024. The fluctuation between 2022 and 2023 may reflect changes in operating costs or revenue recognition, with recovery evident in 2024.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)

EBITDA showed an upward trend from 10,331 million US dollars in 2020 to 11,843 million in 2021 and 12,589 million in 2022. A slight decrease occurred in 2023 to 11,891 million, followed by an increase to 12,461 million in 2024. The pattern aligns with EBIT trends, illustrating a relatively stable operational cash flow with minor year-to-year variations.

The enterprise value (EV) of the company exhibited fluctuations over the analyzed period. Beginning at approximately $161.7 billion at the end of 2020, it increased to a peak of about $183.1 billion by the end of 2021, then declined to roughly $158.1 billion in 2022. Subsequently, EV rose again to around $183.6 billion in 2023 before experiencing a moderate decrease to approximately $176.5 billion by the end of 2024. This pattern indicates a level of volatility with alternating periods of growth and contraction in overall valuation.

Regarding earnings before interest, tax, depreciation, and amortization (EBITDA), there was a general upward trend across the observed timeframe. Starting at $10.3 billion in 2020, EBITDA rose steadily to $11.8 billion in 2021 and further increased to about $12.6 billion in 2022. In 2023, EBITDA saw a slight decline to approximately $11.9 billion but rebounded in 2024 to reach $12.5 billion, approaching previous highs. This suggests relatively consistent operational profitability with minor fluctuations.

The EV/EBITDA ratio, which provides an indication of valuation relative to earnings, displayed noticeable variability correlated with changes in EV and EBITDA. The ratio began at 15.65 in 2020 and slightly decreased to 15.46 in 2021. It then declined more significantly to 12.56 in 2022, reflecting a period where EBITDA growth outpaced valuation, potentially signaling improved earnings relative to enterprise value. In 2023, the ratio returned close to earlier levels at 15.44, coinciding with the increase in EV and lower EBITDA. By 2024, it declined again to 14.16, suggesting a modest recalibration of valuation relative to earnings.

Overall, the data reflects a business experiencing some cyclicality in market valuation, with operational earnings generally trending upward despite occasional decreases. The valuation multiples correspondingly adjust to these dynamics, indicating shifts in investor perception or market conditions affecting how the company’s earnings are valued over time.