Union Pacific Corp
Exchange: NYSESector: IndustrialsIndustry: Railroads
Union Pacific delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations.
Did you know?
Capital expenditures increased by 10% from FY24 to FY25.
Current Price
$246.11
+0.23%GoodMoat Value
$213.57
13.2% overvaluedProfile
Valuation (TTM)
Market Cap$145.98B
P/E20.45
EV$172.43B
P/B7.91
Shares Out593.16M
P/Sales5.96
Revenue$24.51B
EV/EBITDA13.68
Union Pacific Corp (UNP) Stock Analysis
GoodMoat Analysis
Union Pacific operates a critical, high-moat railroad network in the western US, but its current valuation appears elevated relative to its estimated fair value and recent performance. The business exhibits strong quality indicators like high profitability, but faces a valuation gate that requires caution.
Read full analysis
Union Pacific Corp (UNP) is a major freight railroad operator with a 32,000-mile network in the western two-thirds of the United States. Its business model is the quintessential example of a wide-moat infrastructure asset. Applying the GoodMoat framework, UNP scores highly on several moat criteria: it possesses immense scale privilege in physical infrastructure, high regulatory and permitting barriers to entry, and significant switching costs for customers due to the mission-critical nature of its routes. This translates directly into exceptional financial quality, with an operating margin of 40.2%, an ROE of 38.7%, and a profit margin of 29.1%, all indicating a powerful, capital-efficient franchise.
However, the analysis pivots at the valuation gate. The stock trades at a P/E of 20x, which is not extreme, but the GoodMoat Target price is $213.57, suggesting the current price of $241.33 is approximately 13% above that estimate. This results in a negative margin of safety, placing it in the 'Unfavourable' band of the Decision Framework's valuation assessment. Furthermore, the company shows a slight year-over-year revenue decline of -0.6%, which, while possibly cyclical, introduces a note of caution against the premium valuation. For a value investor, UNP represents a high-quality business with a durable moat, but it is priced at a level that demands perfect execution and growth re-acceleration, making further investigation necessary to justify the premium.
Analysis based on data as of 2024-05-15.
Market Cap$145.98B
Current Price$246.11
P/E Ratio20.45
Forward P/E—
PEG Ratio2.98
EPS$11.98
Book Value$31.13
P/B Ratio7.91
UNP Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 1.1% FCF growth (CAGR)
Cash vs Debt
Net Debt: 31.3B
Revenue
21.7B
FY19
19.5B
FY20
21.8B
FY21
24.9B
FY22
24.1B
FY23
24.3B
FY24
24.5B
FY25
Net Income
5.9B
FY19
5.3B
FY20
6.5B
FY21
7.0B
FY22
6.4B
FY23
6.7B
FY24
7.1B
FY25
UNP 52-Week Range
$203.49
$266.97
50-Day MA: $248.95200-Day MA: $230.58
Did you know?
Net income compounded at 3.2% annually over 6 years.
Union Pacific Corp (UNP) Financial Summary
Union Pacific Corp (UNP) is a Industrials company in the Railroads industry, listed on NYSE. The stock currently trades at $246.11 with a market capitalization of $145.98B.
Key valuation metrics include a P/E ratio of 20.45, price-to-book ratio of 7.91, and EPS of $11.98. The company reports a profit margin of 29.1% and return on equity of 38.7%.
UNP Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $145.98B |
| P/E Ratio | 20.45 |
| EPS | $11.98 |
| P/B Ratio | 7.91 |
| P/S Ratio | 5.96 |
| EV/EBITDA | 13.68 |
| Dividend Yield | 2.22% |
| Profit Margin | 29.1% |
| Return on Equity | 38.7% |
| Debt/Equity | 1.76 |
UNP Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $21.71B | $5.92B |
| FY20 | $19.53B | $5.35B |
| FY21 | $21.80B | $6.52B |
| FY22 | $24.88B | $7.00B |
| FY23 | $24.12B | $6.38B |
| FY24 | $24.25B | $6.75B |
| FY25 | $24.51B | $7.14B |
Union Pacific Corp (UNP) Valuation
Based on GoodMoat's DCF model, Union Pacific Corp has a fair value estimate of $213.57. At the current price of $246.11, the stock appears 15.2% overvalued relative to our intrinsic value estimate.
UNP Quality Indicators
Union Pacific Corp maintains a profit margin of 29.1% and an operating margin of 40.2%. Return on equity stands at 38.7%. The current ratio is 0.91. Debt-to-equity ratio is 1.76.
About Union Pacific Corp
Union Pacific delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations.
UNP Free Cash Flow
Union Pacific Corp generated $5.50B in trailing twelve-month free cash flow, representing an FCF yield of 3.77%. This moderate FCF yield indicates reasonable cash generation.
UNP Shares Outstanding
Union Pacific Corp has 0.59 billion shares outstanding at a share price of $246.11, giving it a market capitalization of $145.98B.
UNP Recent Insider Trades
Recent insider transactions at Union Pacific Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Gehringer Eric J (EVP OPERATIONS) | SELL | 1,999 | $469625.07 |