Union Pacific Corporation (UNP)
Industrials · $161B market cap · SEC CIK 0000100885
fundamentals score out of 100
Next reports on Oct 21, 2026, before the open, with analysts expecting $3.48 in earnings per share.
The case for UNP
- Earns 39% back on shareholder equity.
- Generated $5.5B of free cash flow in FY2025, 22% of revenue.
- 29% of revenue drops through to net profit.
- Gross margin of 78% absorbs cost shocks.
- Pays a modest 2.3% dividend.
The case against
- A PEG of 3.0: a P/E of 22.0× is a lot to pay for EPS growing 7%.
- Priced at 6.3× sales with revenue growing only 4.2%.
- Current liabilities exceed current assets (ratio 0.99).
- Growth is weak (40/100): revenue +4.2%, EPS +7.3%, +4.6% a year over five years.
- Long-term debt of $31.8B against $1.3B of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 48 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 40 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 87 |
| Momentumhow the price has behaved lately | 64 |
| Stabilityhow violently it moves, what it owes and what it pays you | 66 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 22.0× |
|---|---|
| Price / book | 7.81× |
| Price / sales | 6.3× |
| Revenue growth (YoY) | +4.2% |
| EPS growth (YoY) | +7.3% |
| Gross margin | 78% |
| Operating margin | 40% |
| Net margin | 29% |
| Return on equity | 39% |
| Debt / equity | 1.47× |
| Current ratio | 0.99 |
| Dividend yield | 2.32% |
| Beta | 0.87 |
| 52-week range | $215.53 – $315.99 |
| Position in that range | 59% of the way up |
| 3-month return | +5.0% |
| 1-year return | +22.2% |
Five years of financials, as filed
Pulled from Union Pacific Corporation's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $24.5B | $24.3B | $24.1B | $24.9B | $21.8B |
| Operating income | $9.8B | $9.7B | $9.1B | $9.9B | $9.3B |
| Net income | $7.1B | $6.7B | $6.4B | $7.0B | $6.5B |
| Operating cash flow | $9.3B | $9.3B | $8.4B | $9.4B | $9.0B |
| Capital expenditure | $3.8B | $3.5B | $3.6B | $3.6B | $2.9B |
| Total assets | $69.7B | $67.7B | $67.1B | $65.4B | $63.5B |
| Total liabilities | $51.2B | $50.8B | $52.3B | $53.3B | $49.4B |
| Shareholder equity | $18.5B | $16.9B | $14.8B | $12.2B | $14.2B |
| Cash | $1.3B | $1.0B | $1.1B | $973M | $960M |
| Long-term debt | $31.8B | $31.2B | $32.6B | $33.3B | $29.7B |
| Free cash flow | $5.5B | $5.9B | $4.8B | $5.7B | $6.1B |
| Operating margin | 40.2% | 40.1% | 37.7% | 39.9% | 42.8% |
| Net margin | 29.1% | 27.8% | 26.4% | 28.1% | 29.9% |
| Diluted shares | 596M | 609M | 610M | 624M | 655M |
Share count is down 9.1% over 4 years. Buybacks have been shrinking the pie.
What Union Pacific Corporation says it does
Union Pacific Railroad Company is the principal operating company of Union Pacific Corporation. One of America's most recognized companies, Union Pacific Railroad Company connects 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. The Railroad’s diversified business mix includes Bulk, Industrial, and Premium. Union Pacific serves many of the fastest-growing U.S. population centers, operates from all major West Coast and Gulf Coast ports to Eastern gateways, connects with Canada's rail systems, and is the only railroad serving all six major Mexico gateways. Union Pacific provides value to customers by delivering products in a safe, reliable, fuel-efficient, and environmentally responsible manner. Union Pacific Corporation was incorporated in Utah in 1969 and maintains its principal executive offices at 1400 Douglas Street, Omaha, NE 68179. The telephone number at that…
Risk factors UNP lists in its 10-K
- We must manage fluctuating demand for our services and network capacity
- The ability to update or maintain technology could adversely affect our operations
- We are subject to cybersecurity risks
- Severe weather and natural events could result in significant business interruptions and expenditures
- A significant portion of our revenues involves transportation of commodities to and from international markets
- We are dependent on certain key suppliers of locomotives and rail
- Strikes or work stoppages could adversely affect our operations
- The availability of qualified personnel could adversely affect our operations
- We are subject to significant governmental regulation
- We may be subject to various claims and lawsuits that could result in significant expenditures
- We are subject to significant environmental laws and regulations
- We face competition from other railroads and other transportation providers
- We may be affected by climate change and market or regulatory responses to climate change
- Our business, financial condition, and results of operations have been adversely affected, and in the future, could be materially adversely affected by pandemics or other public health crises