Union Pacific Corporation (UNP) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Union Pacific Corporation

Updated on October 23, 2026 · accounts published on October 22, 2026

Reading of October 22, 2026: A highly profitable transport business with steady margins and a rising dividend

Union Pacific trades at a P/E of 24.1, 12 % above its ten-year median, with a 39 % operating margin over the last 12 months.

• Is Union Pacific expensive or cheap? Union Pacific trades 12 % above its ten-year median P/E and has been cheaper than today 82 % of the decade.
• How is the business doing? Over the last 12 months revenue grew 1.1 % but EPS rose 7.9 %, on an operating margin in line with its decade average.
• How strong is the balance sheet? Net debt was 2.4× EBITDA in fiscal 2025, under the 3.0× industrials ceiling, and the dividend rose for a 9th straight year.
• What to expect from the next earnings? Analysts expect EPS of $3.32 for the quarter reported on January 26, 2027, below the $3.53 just delivered.
• Does it turn its margin into cash, and at what multiple of the cycle? Free cash flow was 77 % of net profit in fiscal 2025, short of the 85 % industrials benchmark, as capex took 15.5 % of revenue.

Is Union Pacific expensive or cheap?

Union Pacific trades at a P/E of 24.1 over the last 12 months, 12 % above its ten-year median of 21.5. Over the decade the multiple has ranged from 9.7 to 33.5, and it has been lower than today 82 % of the time. Against its peers the picture looks better: the median P/E of 406 industrial companies is 26.2, so Union Pacific sits 8 % below its sector. After a 35 % rise over the last 12 months, the stock is 4 % under its 52-week high of $310.62, and the free cash flow yield is a modest 4.8 %.

How is the business doing?

Sales are barely moving: revenue grew 1.1 % over the last 12 months, while EPS rose 7.9 %, so profit is growing faster than the top line. The operating margin of 39 % over the last 12 months matches its 2014-2025 average of 39 %, after 40 % in fiscal 2025, a level the company has held for more than a decade. The net margin is 31 %. Returns are solid without being exceptional: ROIC stayed above 10 % in 9 of the last 10 fiscal years, with 8.6 % in 2016 as the low, and ROE is 13 % over the last 12 months.

How strong is the balance sheet?

The debt load is manageable. Net debt stood at $53.33 per share in fiscal 2025, equal to 18 % of the current share price, and at 2.4× EBITDA it sits below the 3.0× level considered healthy for industrials. Liquidity is comfortable, with a current ratio of 2.39 over the last 12 months, and an Altman Z-score of 3.8 places the company in the safe zone, above the 2.99 threshold. Shareholders get a 1.9 % dividend yield over the last 12 months. The payout was 45 % of earnings in fiscal 2025, and the dividend per share has risen for 9 consecutive fiscal years.

What to expect from the next earnings?

Union Pacific reported on October 22, 2026, with EPS of $3.53 against $3.47 expected, a 1.7 % beat, and it has topped estimates in 6 of the last 8 quarters. For the next report, due January 26, 2027, analysts expect EPS of $3.32. Estimates for fiscal 2026 are stable: the EPS consensus barely moved in the last 30 days, from $13.08 to $13.11 across 15 analysts, while the revenue consensus rose 1.3 %. Of the 47 analysts covering the company, 28 recommend buying, 17 holding and 1 selling. With a steady consensus, the question is whether the run of beats continues.

Does it turn its margin into cash, and at what multiple of the cycle?

Industrials are semi-cyclical, so what counts is whether margins turn into cash and what multiple the market pays across the cycle. Union Pacific clears the margin bar easily, with 40 % in fiscal 2025 against a healthy level of 12 %. Cash conversion is borderline: free cash flow equalled 77 % of net profit in fiscal 2025, short of the 85 % benchmark, because capex absorbed 15.5 % of revenue, well above the 4-8 % range typical of the sector. ROIC of 11.7 % in fiscal 2025 also misses the 15 % mark. On the cycle, the P/E of 24.1 sits above 110 % of its ten-year average of 21.2, the line that marks it as expensive.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.