UNP Union Pacific Corporation - Fundamental Analysis
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UNP Stock | Fundamental Analysis & Investment Insights
NYSE
Industrials
Railroads
Current Price
Live
$229.49
Analyst Target
$261.64
+14.0%
Upside
52W High
$256.84
52W Low
$204.66
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
AI-powered fundamental assessment
Confidence
72%
The Advanced Deterministic Scorecard reveals a mixed profile: the Piotroski F-Score of 4/9 indicates stable but not strong financial health, while the absence of an Altman Z-Score prevents a definitive safety assessment. UNP demonstrates exceptional profitability with ROE of 41.62% and gross margins above 56%, yet faces headwinds from a bearish technical trend, modest revenue growth of 2.5%, and a stretched valuation relative to both Graham’s defensive benchmark ($87.94) and current price ($229.49). Despite a strong dividend yield of 2.39% and analyst buy consensus, weak insider sentiment and deteriorating short-term earnings momentum temper optimism. The stock trades at a significant premium, supported by above-average profitability but offset by balance sheet leverage and inconsistent quarterly beats.
Key Strengths
Exceptional profitability metrics: ROE of 41.62%, ROA of 9.20%, and gross margin of 56.14% far exceed sector averages
Strong free cash flow generation implied by high operating margins and consistent earnings, supporting dividend sustainability
Attractive dividend yield of 2.39% with a reasonable 45.84% payout ratio, providing income stability
Analyst consensus is 'buy' with a target price of $261.64, implying ~14% upside
Superior profit margin of 28.73% vs. sector average of 8.71%, reflecting pricing power and cost efficiency
Key Risks
Piotroski F-Score of 4/9 indicates borderline financial health, suggesting potential weakness in earnings stability or leverage control
High valuation: P/E of 19.48 and Price/Book of 7.87 exceed sector averages, increasing downside risk in a downturn
Debt/Equity ratio of 1.90 is elevated, above the sector average of 1.54, raising financial risk despite strong cash flows
Bearish technical trend (0/100) and flat 1-year price performance signal weak momentum and investor hesitation
Recent Q/Q EPS decline of -0.7% and only 2 beats in last 4 quarters indicate weakening earnings momentum
AI Fair Value Estimate
Based on comprehensive analysis
$210.5
-8.3% below current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare UNP against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations
Past News Coverage
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