Union Pacific Corporation (UNP) Stock

Union Pacific Corporation trades at a P/E ratio of 21.23, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 21.37 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 3.01 indicates a premium valuation even accounting for growth.

With a beta of 0.95, Union Pacific Corporation is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 8.57 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Union Pacific Corporation achieves a profit margin of 29.10%, meaning it retains $29.10 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 40.90% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 40.40% and ROA at 9.07%, the company generates strong returns on invested capital.

Union Pacific Corporation's revenue declined by 0.60% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings increased by 6.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against RAILROADS industry averages for proper context.

Union Pacific Corporation offers a dividend yield of 2.09%, paying $5.44 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Feb 27, 2026.

The dividend sustainability can be assessed through the payout ratio - Union Pacific Corporation pays $5.44 per share in dividends against earnings of $11.97 per share, resulting in a payout ratio of 45.45%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Mar 31, 2026.

Union Pacific Corporation has a market capitalization of $150.8B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 593.39M shares outstanding, the company's ownership is relatively concentrated. As a major player in the RAILROADS industry, it competes with other firms in this sector.

Union Pacific Corporation's book value per share is $31.13, while the current stock price is $250.27, resulting in a price-to-book (P/B) ratio of 8.04. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

26 analysts cover UNP with 58% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $272.21 implies 8.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:2 Strong Buy, 13 Buy, 10 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.