Debt burden is moderate, so it can be affected by the economic cycle.
Metrics · D/E ~150% · Current Ratio 0.99
💲Is the price expensive now?
Not cheap (fair to slightly pricey)
Because it is a good, popular company, those expectations are already priced in.
Metrics · P/E 24.2 · P/B 8.6
💡Largest U.S. freight railroad: op margin 40.8%, ROE 39.7% lead rails. P/E 24 isn't cheap; D/E 1.5 normal for rail. Norfolk Southern deal is the key variable.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: stockanalysis (operating margin, net margin, ROE, P/B are TTM; ROE runs high because buybacks have thinned equity) · P/E and P/B on the July 27 close, as of 2026-07-27
Business Summary · Key Value Metrics
The largest U.S. freight railroad, running ~32,000 route miles across 23 western states to haul grain, coal, autos, chemicals, and containers. Western freight rail is a UNP–BNSF duopoly and a new line can't be built, so entry barriers are absolute. In July 2025 it agreed to buy No. 2 Norfolk Southern for ~$85B (regulatory review underway). TTM revenue $25.4B, operating margin 40.8%, ROE 39.7%.
Current Price
$299.30
-2.61%-$8.02· Close 2026-07-27
Analyst Consensus Target (external reference)
$328.29
Avg. of 25 external analysts · stockanalysis (25-analyst consensus, Buy)
P/E (TTM)
24.2x
TTM · upper end of its own band
Operating margin
40.8%
TTM · top of rails (OR 59%)
ROE
39.7%
TTM · inflated by buybacks
Debt/Equity
1.5x
normal for rail · 7.9x coverage
Dividend yield
1.84%
value stock, not a dividend stock
Market cap
$177.8B
as of 2026-07-27
Economic Moat · Key Business Segments
Union Pacific's moat is a physically irreplaceable network. Western U.S. freight rail is effectively split between UNP and BNSF, and laying a new transcontinental line is impossible on land, environmental, and regulatory grounds. That monopoly translates into pricing power: in Q2 2026 it raised core pricing +175bp while still growing volumes +2%. Cost efficiency is top-tier too — Q2 2026 adjusted operating ratio was 59.2% (59 cents of cost per revenue dollar). It also cut shares ~29% over nine years, compounding per-share value (source: company IR, stockanalysis).
Irreplaceable network
A 32,000-mile western duopoly (UNP, BNSF). Building a new transcontinental line is effectively impossible.
Pricing power
Network monopoly drove +175bp core pricing in Q2 2026, passing inflation to shippers.
Cost efficiency (OR 59%)
Adjusted operating ratio 59.2%, so ~40% operating margin — top tier among S&P industrials.
Buyback compounding
Shares down 29% in nine years — why EPS grows faster than the +2% revenue line.
10-Year Financial Trends
Revenue grew only from $19.9B (2016) to $24.5B (2025), a 9-year CAGR of +2.3% — mature. Diluted EPS grew far faster at +10.0%, blending buybacks (shares -29%) with a 2017 tax-reform (TCJA) one-off: 2017 net income of $10,712M and EPS $13.36 were inflated by a $3,080M tax benefit, so that year's P/E 10.0 and ROE 47.8% aren't real earning power. 2016 (weak oil/coal) and 2020 (COVID, revenue -10%) were troughs. Ex one-offs, the normal trend is ~+6.1% EPS over 2018–2025. Q2 2026: revenue $6.9B (+12% YoY), diluted EPS $3.36, adjusted OR 59.2% (source: SEC EDGAR 10-K, stockanalysis, company IR).
9-Year CAGR: Revenue +2.3% · Operating Income +3.5% · Net Income +6.0% · EPS +10.0% (incl. buybacks/2017; normal +6.1%)
Source: SEC EDGAR 10-K (revenue, operating income, net income, diluted EPS, equity, taxes) · year-end closes from Yahoo Finance · cross-checked with stockanalysis. P/E = year-end close ÷ diluted EPS, ROE = net income ÷ average equity; the five years 2021–2025 match stockanalysis figures (P/E 25.32, 18.47, 23.50, 20.56, 19.31 / ROE 41.92, 53.17, 47.34, 42.60, 40.38). The 2017 distortion is a $3,080M tax-reform benefit (net income above operating income), confirmed in EDGAR. There were no stock splits over 2016–2025 (verified via net income ÷ diluted shares).
Mega-Cap Value Metric Comparison
Union Pacific leads listed North American rails with a 40.8% operating margin and 39.7% ROE, ahead of CSX (35.7%) and Norfolk Southern (33.9%) on margin. Yet its 24.2 P/E is actually below CSX (30.0) and Norfolk Southern (29.3) — Norfolk Southern is UNP's acquisition target, so a deal premium is priced into it. UNP's true western-duopoly rival is the unlisted BNSF (owned by Berkshire Hathaway), so it isn't in the table (source: stockanalysis, company IR).
Norfolk Southern deal regulatory risk— In July 2025 it agreed to acquire Norfolk Southern for about $85B. If approved it becomes the first single-company transcontinental railroad (~50,000 miles, 43 states), but the Surface Transportation Board (STB) review is ongoing and completion is expected in early 2027. The current price carries a deal premium, so a rejection, conditional approval, or integration costs could trigger a pullback.Source: Company IR · STB filings
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Mature low growth, cyclical— Revenue has grown just +2.3% CAGR over nine years — a mature business. Volumes track industrial production, coal, and intermodal demand, so it rides the cycle; revenue fell -10% in 2020 on COVID.Source: Company 10-K
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Valuation— A 24.2 P/E is at the upper end of its own historical band, high for a +2% revenue grower. With most growth coming from buybacks, a failed deal could compress the multiple.Source: stockanalysis
✦ ValueCrab Dashboard PreviewUNP $299.3 -2.61% · as of 2026-07-27
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Growth
Earnings
Dividend
Cash
Revenue 10Y trend$24.5B · CAGR +2.3%
$24.9B$0.0B
20162025
P/E (TTM)24.2x
Operating margin40.8%
ROE39.7%
Debt/Equity1.5x
Dividend yield1.84%
Market cap$177.8B
Revenue CAGR 9Y+2.3%
EPS CAGR 9Y+10.0% (incl. buybacks/2017; normal +6.1%)
Q. What are the key value metrics for Union Pacific (UNP)?P/E (TTM) 24.2, operating margin 40.8%, ROE 39.7%, D/E 1.5x, dividend yield 1.84%, 9-year revenue CAGR +2.3% (source: stockanalysis, SEC EDGAR, as of 2026-07-27).
Q. A 39.7% ROE — isn't that fantastic?Profitability is strong, but the number has an optical boost. UNP has bought back stock heavily for years (shares -29% over nine years), thinning the equity denominator, so ROE reads higher than the underlying earning power. The 40.8% operating margin (operating ratio 59%) is a more honest gauge of the business itself.
Q. A D/E of 1.5 — isn't that a lot of debt?Rail is capital-intensive — track and locomotives tie up huge capital — so a debt/equity above 1 is normal for the industry. UNP's interest coverage is 7.9x, meaning operating income is nearly eight times interest expense, so it comfortably services the debt.
Q. Why does the Norfolk Southern acquisition matter?In July 2025 UNP agreed to buy the No. 2 railroad, Norfolk Southern, for about $85B. If it closes, it would be the first railroad to link East and West as a single transcontinental system. But the regulator (STB) review is ongoing and completion is expected in early 2027, so approval is this stock's biggest swing factor. We don't give price targets or buy recommendations — the decision is yours.