Union Pacific Corporation (UNP) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Union Pacific Corporation (UNP) Industrial Operations Profile

Union Pacific Corporation, a leading railroad company in the U.S., offers extensive transportation services for various commodities and finished goods, connecting key ports and gateways. With a substantial rail network and a focus on operational efficiency, UNP plays a crucial role in the nation's supply chain, demonstrating a strong market position within the industrials sector.

What Is the Investment Thesis for UNP?

Union Pacific Corporation presents a compelling investment case based on its strategic position in the U.S. transportation sector. With a market capitalization of $181B and a P/E ratio of 33.8, the company demonstrates financial stability. A profit margin of 29.2% and a gross margin of 45.7% indicate efficient operations. Key value drivers include the company's extensive rail network, diverse commodity portfolio, and ongoing efforts to improve operational efficiency through technology and infrastructure investments. Growth catalysts include increasing demand for freight transportation, particularly in intermodal and industrial products. Potential risks include economic downturns affecting freight volumes, regulatory changes, and competition from other transportation modes. The company's dividend yield of 2.07% offers an additional incentive for investors.

Based on FMP financials and quantitative analysis

UNP Key Highlights

Market Cap of $181B reflects Union Pacific's significant presence and valuation in the railroad industry.

• P/E Ratio of 33.8 indicates how much investors are willing to pay for each dollar of Union Pacific's earnings.
• Profit Margin of 29.2% demonstrates Union Pacific's ability to generate profit from its revenue after accounting for all expenses.
• Gross Margin of 45.7% showcases Union Pacific's efficiency in managing production costs relative to its revenue.
• Dividend Yield of 2.07% provides investors with a return on their investment through regular dividend payments.

Who Are UNP's Competitors?

UNP is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are UNP's Key Strengths?

Extensive rail network connecting key ports and gateways.

• Diverse commodity portfolio reduces reliance on any single market.
• Strong financial performance with high profit and gross margins.
• Experienced management team focused on operational efficiency.

What Are UNP's Weaknesses?

High capital expenditures required for infrastructure maintenance and upgrades.

• Vulnerability to economic downturns affecting freight volumes.
• Dependence on external factors such as fuel prices and weather conditions.
• Potential for labor disputes and disruptions.

What Could Drive UNP Stock Higher?

Infrastructure investments to enhance rail network capacity and efficiency.

• Implementation of advanced technologies to optimize train schedules and reduce fuel consumption.
• Expansion of intermodal transportation services to capture growing demand.
• Focus on sustainable transportation solutions to attract environmentally conscious customers.

What Are the Key Risks for UNP?

Economic downturns affecting freight volumes and revenue.

• Regulatory changes impacting transportation policies and costs.
• Cybersecurity threats targeting critical infrastructure.
• Competition from other railroad companies and trucking firms.
• Fluctuations in fuel prices and labor costs.

What Are the Growth Opportunities for UNP?

• Growth opportunity 1: Intermodal Transportation: Union Pacific can capitalize on the growing demand for intermodal transportation, which combines rail and truck transport for increased efficiency. The intermodal market is projected to grow as e-commerce expands and supply chains become more complex. By investing in infrastructure and technology to improve intermodal operations, Union Pacific can attract more customers and increase its market share. This includes expanding terminal capacity and enhancing tracking and tracing capabilities. Timeline: Ongoing.
• Growth opportunity 2: Industrial Products: The industrial products segment, including chemicals, plastics, and construction materials, presents a significant growth opportunity. As the U.S. economy expands, demand for these products is expected to increase. Union Pacific can focus on providing reliable and cost-effective transportation solutions for industrial customers, leveraging its extensive network and specialized equipment. This includes developing customized transportation plans and offering value-added services. Market size: Ongoing.
• Growth opportunity 3: Technology and Innovation: Investing in technology and innovation can drive operational efficiency and improve customer service. This includes implementing advanced analytics to optimize train schedules and reduce fuel consumption. Union Pacific can also leverage technology to enhance safety and security, such as implementing predictive maintenance systems and improving track inspection processes. These investments can lead to cost savings and increased competitiveness. Timeline: Ongoing.
• Growth opportunity 4: Sustainable Transportation: As environmental concerns grow, Union Pacific can capitalize on the demand for sustainable transportation solutions. Rail transport is more fuel-efficient than trucking, making it a noteworthy option for companies looking to reduce their carbon footprint. Union Pacific can promote its environmental benefits and invest in technologies to further reduce emissions, such as using alternative fuels and improving locomotive efficiency. Market size: Ongoing.
• Growth opportunity 5: Supply Chain Solutions: Union Pacific can expand its role in the supply chain by offering integrated logistics solutions to customers. This includes providing end-to-end transportation services, managing inventory, and coordinating with other transportation providers. By offering comprehensive supply chain solutions, Union Pacific can attract more customers and increase its revenue per shipment. This requires investing in technology and developing partnerships with other logistics providers. Timeline: Ongoing.

What Are UNP's Competitive Advantages?

• Extensive Rail Network: Union Pacific's vast rail network provides a significant competitive advantage, connecting key ports and gateways across the United States.
• High Barriers to Entry: The railroad industry has high barriers to entry due to the significant capital investments required to build and maintain rail infrastructure.
• Economies of Scale: Union Pacific benefits from economies of scale, allowing it to operate more efficiently and offer competitive pricing.
• Strategic Locations: Union Pacific's rail lines connect key industrial and agricultural regions, providing access to diverse markets.

What Does UNP Do?

Founded in 1862, Union Pacific Corporation has evolved into one of the largest railroad networks in the United States. The company's primary business is the operation of Union Pacific Railroad Company, which provides transportation services for a wide array of commodities. These include grain and grain products, fertilizers, food and refrigerated products, coal and renewables, petroleum, liquid petroleum gases, construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, soda ash, sand, finished automobiles, automotive parts, and merchandise in intermodal containers. Union Pacific's extensive rail network spans 32,452 route miles as of December 31, 2021, connecting Pacific Coast and Gulf Coast ports with the Midwest and Eastern United States gateways. Headquartered in Omaha, Nebraska, Union Pacific plays a critical role in the nation's supply chain, facilitating the movement of goods across key economic regions. The company's focus on safety, efficiency, and customer service has solidified its position as a leading transportation provider, adapting to changing market demands and technological advancements to maintain its competitive edge.

What Products and Services Does UNP Offer?

• Transports grain and grain products for agricultural users.
• Delivers fertilizers to support the agricultural sector.
• Provides transportation for food and refrigerated products.
• Moves coal and renewable energy resources.
• Transports petroleum and liquid petroleum gases.
• Handles construction products and industrial chemicals.
• Facilitates the movement of finished automobiles and automotive parts.
• Offers intermodal container transportation for various merchandise.

How Does UNP Make Money?

• Generates revenue by transporting a diverse range of commodities via its rail network.
• Provides transportation services to various industries, including agriculture, energy, and automotive.
• Offers intermodal transportation solutions, combining rail and truck transport.
• Focuses on operational efficiency to reduce costs and improve profitability.

What Industry Does UNP Operate In?

Union Pacific operates in the railroad industry, a critical component of the U.S. transportation infrastructure. The industry is characterized by high barriers to entry due to significant capital investments and regulatory requirements. Market trends include increasing demand for freight transportation driven by economic growth and e-commerce. Union Pacific competes with other major railroad companies and trucking firms. The company's extensive network and diverse commodity portfolio position it favorably in the competitive landscape. The industry is also influenced by factors such as fuel prices, labor costs, and environmental regulations.

Who Are UNP's Key Customers?

• Grain processors and animal feeders in the agricultural sector.
• Ethanol producers and other renewable energy companies.
• Petroleum and liquid petroleum gas companies.
• Manufacturers of construction products and industrial chemicals.
• Automotive manufacturers and parts suppliers.

Union Pacific Corporation Financial Trajectory

Union Pacific Corporation (UNP) reported $6.86B in revenue for Q2 2026, reflecting 10.4% growth compared to the prior quarter. The company recorded net income of $1.99B, with diluted EPS of $3.36. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Industrials company. Across the four most recent quarters, UNP averaged $3.09 in diluted EPS.

Company Profile

Union Pacific Corporation operates in the Railroads industry within the Industrials sector. It is headquartered in Omaha, US. The company is led by CEO Vincenzo James Vena. UNP has traded publicly since 1980.

How Union Pacific Corporation Is Valued

Union Pacific Corporation carries a market capitalization of $181B, placing it in the large-cap category. Relative to its peer group, UNP's quantitative score of 80/100 is above the peer average of 61/100.

Return on equity for Union Pacific Corporation stands at 38.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 10.3%, showing how much profit it generates from its asset base. UNP trades at a trailing price-to-earnings ratio of 33.82, roughly in line with the Industrials sector average of ~32x. Its free cash flow yield is 3.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.99 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 4.0%, the inverse of the P/E and a quick read on earnings relative to price.

Union Pacific Corporation's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 4.37 places it in the safe zone, indicating low near-term bankruptcy risk.

Union Pacific Corporation has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 2.1% above estimates on average.

Wall Street analysts project Union Pacific Corporation revenue of about $26.75B for fiscal 2026, with EPS near $13.05. The estimate reflects 16 contributing analysts.

Over the past six months, Union Pacific Corporation insiders filed 15 SEC Form 4 transactions — 0 sales and 15 purchases. On net that is roughly 3K shares acquired (about $9K) — insiders putting money in tends to read as conviction.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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