UNION PACIFIC CORP (UNP) Stock Analysis

Analysis from 10-Q filed 2025-10-23. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 13.1%. FCF margin 23.1%. D/E 1.5x. Source: 10-Q filed 2025-10-23.

Metric	Value	Context
ROIC	13.1%	Solid returns
FCF Margin	23.1%	Strong cash generation
Debt/Equity	1.5x	Elevated debt

ROIC 13.1% — Top 25% of sector peers. FCF margin 23.1% — Top 5%.

Explore UNION PACIFIC CORP: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for UNP: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

---

Profitability: UNION PACIFIC CORP earns 13.1% ROIC, Top 25% in Transportation

ROIC TTM 13.1%, sector median 6.3%, Top 25%. DuPont: NOPAT margin 31.3% × asset turnover 0.4x. Operating margin 40.2%. Source: 10-Q filed 2025-10-23.

Metric	UNP	Rating	Context
Return on Invested Capital (ROIC)	13.1%	Good	Above sector median of 6.3%
Return on Equity (ROE)	41.4%	Excellent	Efficient use of shareholder equity
Operating Margin	40.2%	Excellent	Efficient operations

---

Cash Flow: UNION PACIFIC CORP generates $5.7B FCF at 23.1% margin, positive NaN/8 quarters

FCF TTM $5.7B. FCF margin 23.1%, Top 5%. OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-23.

Metric	UNP	Rating	Context
Free Cash Flow Margin	23.1%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$5.7B	Good	Positive cash generation
OCF/Net Income	1.3x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: UNION PACIFIC CORP at 1.5x leverage

Debt/Equity 1.5x. Total debt $29.8B, cash & investments $751.0M. Source: 10-Q filed 2025-10-23.

Metric	UNP	Rating	Context
Debt to Equity	1.5x	Warning	Elevated leverage
Net Cash Position	$-29.0B	Warning	Net debt position

---

Valuation: UNION PACIFIC CORP trades at 19.9x earnings

P/E 19.9x. EV/Sales 7.0x. FCF yield 4.0%. Dividend yield 2.3%. Source: 10-Q filed 2025-10-23.

Metric	UNP	Rating	Context
P/E Ratio	19.9x	Adequate	Reasonable valuation
EV/Sales	7.0x	Adequate	Growth premium priced in
FCF Yield	4.0%	Adequate	Lower cash yield
Dividend Yield	2.3%	Adequate	Growth focus over income

---

Capital Allocation: UNION PACIFIC CORP returns 3.1% shareholder yield

Total shareholder yield 3.1% (div 2.3% + buyback 0.9%). Capital returned $4.5B TTM. Source: 10-Q filed 2025-10-23.

Metric	UNP	Rating	Context
Total Shareholder Yield	3.1%	Good	Dividend + buyback yield combined
Buyback Yield	0.9%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$4.5B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	13.1%	Top 25%	2.1x above
Free Cash Flow Margin	23.1%	Top 5%	4.9x above
Operating Margin	40.2%	Top 5%	6.4x above
Return on Equity (ROE)	41.4%	Top 10%	3.9x above
P/E Ratio	19.9x	N/A	-

---

Financial Scorecard

Metric	UNP	Rating	Sector Context
Return on Invested Capital (ROIC)	13.1%	Good	Top 25% of sector (median: 6.3%)
Free Cash Flow Margin	23.1%	Excellent	Top 5% of sector (median: 4.8%)
Debt to Equity Ratio	153.4%	Warning	High financial leverage
P/E Ratio (Price-to-Earnings)	19.9x	Adequate	Fair value
Free Cash Flow Yield	4.0%	Adequate	Moderate yield

---

Frequently Asked Questions

Q: What is UNION PACIFIC CORP's Return on Invested Capital (ROIC)?

UNION PACIFIC CORP (UNP) has a trailing twelve-month Return on Invested Capital (ROIC) of 13.1%. Sector median 6.3%. Source: 10-Q filed 2025-10-23.

Q: What is UNION PACIFIC CORP's Free Cash Flow Margin?

UNION PACIFIC CORP (UNP) has a free cash flow margin of 23.1%, generating $5.7 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-23.

Q: What is UNION PACIFIC CORP's P/E ratio and how does it compare to peers?

UNION PACIFIC CORP (UNP) trades at a P/E ratio of 19.9x, which is above the sector median of N/A. EV/Sales 7.0x. FCF yield 4.0%. Source: 10-Q filed 2025-10-23.

Q: Does UNION PACIFIC CORP pay a dividend?

UNION PACIFIC CORP (UNP) currently pays a dividend yield of 2.3%. Total shareholder yield (dividend + buybacks) 3.1%. Source: 10-Q filed 2025-10-23.

Q: How much debt does UNION PACIFIC CORP have?

UNION PACIFIC CORP (UNP) has a debt-to-equity ratio of 1.5x with total debt of $29.8 billion. Net debt $29.0 billion. Source: 10-Q filed 2025-10-23.

Q: What is UNION PACIFIC CORP's revenue and earnings growth?

UNION PACIFIC CORP (UNP) grew revenue by 1.9% year-over-year. EPS +9.4% YoY. Source: 10-Q filed 2025-10-23.

Q: Is UNION PACIFIC CORP buying back stock?

UNION PACIFIC CORP (UNP) repurchased $1.3 billion of stock over the trailing twelve months. This represents a buyback yield of 0.9%. Source: 10-Q filed 2025-10-23.

Q: How does UNION PACIFIC CORP compare to competitors in Transportation?

Compared to other companies in Transportation, UNION PACIFIC CORP (UNP) shows: ROIC 13.1%, sector median 6.3% (Top 25%). FCF margin 23.1%, sector median 4.8% (Top 5%). These rankings are based on MetricDuck's analysis of all Transportation companies with available SEC filings.

Q: What warning signs should I watch for with UNION PACIFIC CORP?

Quantitative warning flags for UNION PACIFIC CORP (UNP): 1) debt/equity 1.5x (above 1.5x threshold). Source: 10-Q filed 2025-10-23.

---

Data Source: Data sourced from 10-Q filed 2025-10-23. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.