Union Pacific Corporation

Valuation Analysis

About the Company

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.

Union Pacific Corporation Stock at a Glance

Union Pacific Corporation (UNP) is currently trading at $272.70 with a market capitalization of $161.9B. The trailing P/E ratio stands at 22.43x, with a forward P/E of 19.9x. The 52-week range spans from $210.84 to $279.70; the current price is 2.5% below the yearly high. Year-over-year revenue growth stands at +3.2%. The net profit margin stands at 29.2%.

💰 Dividend

Union Pacific Corporation pays an annual dividend of $5.52 per share, representing a yield of 2.02%. The payout ratio stands at 45.1%.

📊 Analyst Rating

22 analysts rate Union Pacific Corporation (UNP) on consensus: Buy. The average price target is $291.73, implying +6.98% from the current price. Analyst price targets range from $239.00 to $330.00.

Union Pacific Corporation: The Investment Case in Detail

Union Pacific Corporation (UNP) operates in the Industrials — specifically Railroads — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

The combination of a 56.53% gross margin and 40.36% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat. Return on equity of 40.69% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Free cash flow is positive and net margins stand at 29.2%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

The Bear Case

Revenue growth has slowed to just 3.2%, which is below nominal GDP — the business is no longer outgrowing the broader economy.

Valuation in Context

At a PEG of 3.33, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

What to Watch Next

• The forward P/E of 19.9x is meaningfully below the trailing 22.43x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (5.56%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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