Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Union Pacific Corp

UNP · NYSE · Industrial

Fundamental quality

ATTRACTIVE

78

out of 100

Union Pacific Corp runs like a cash machine: it converts about 25.6% of revenue into free cash flow and holds a 28.8% net margin, though it grows at a measured pace. On fundamental quality it scores 78 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +4.9%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Union Pacific is one of the largest freight railroads in the U.S. It moves coal, agricultural products, containers, cars and industrial goods across the western half of the country. It operates a rail network that's nearly impossible to replicate, an enormous barrier to entry.

What will shape its future

  • The volume of freight carried, tied to the health of the economy.
  • Its operating efficiency ('precision scheduled railroading'), key to improving margins.
  • The prices it can charge thanks to its network, versus competition from trucking.

Breakdown by area

I.Growth
50

EPS growth: 8.5% · Revenue growth: 4.9%

II.Profitability
95

Net margin: 28.8% · ROE: 35.5% · ROIC: 16.3%

III.Financial health
81

Net debt/EBITDA: 2.16x · FCF: 25.6%

Source: SEC EDGAR · TTM through 30/06/2026

The score includes +3 for dividend strength: 13 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 69 Industrial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 98%
ROEbeats 82%
Growthbeats 29%
Cash generationbeats 95%
Less debtbeats 52%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Union Pacific Corp strengths

  • Excellent free-cash-flow generation (FCF margin of 25.6%): profit turns into real cash.
  • Exceptional net margin (28.8%), high even for its sector: the business is clearly profitable.
  • Reasonable return on capital: its ROE (35.5%) is inflated by buybacks, but ROIC —which strips that out— is 16.3%.
  • Positive free cash flow year after year, a self-funding business.

Union Pacific Corp risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Union Pacific Corp historical evolution

YearRevenueNet incomeFree cash flowNet debt
202019,5335,3495,61324,930
202121,8046,5236,09628,769
202224,8756,9985,74232,353
202324,1196,3794,77331,524
202424,2506,7475,89430,176
202524,5107,1385,49930,548

Between 2020 and 2025, revenue went from $19,533M to $24,510M (+25%) and net income went from $5,349M to $7,138M (+33%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+7.4%
  • Net income+5.5%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • ROE37.1%35.5%
  • FCF margin23.1%25.6%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$5.44

per share, yearly

45.3% of earnings

Payout

13 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Union Pacific Corp cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Union Pacific Corp a good company to invest in?

In terms of business quality, Union Pacific Corp scores 78 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Union Pacific Corp a profitable company?

Very. Union Pacific Corp shows a net margin of 28.8% and an ROE of 35.5%, typical of a highly profitable business.

Does Union Pacific Corp have a lot of debt?

A moderate level: its net debt is 2.16 times its EBITDA.

Is Union Pacific Corp growing?

Its revenue has grown 4.9% annualized in recent years and its earnings per share 8.5%.

Does Union Pacific Corp generate cash?

Yes. It converts about 25.6% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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