Is the business good?
How good a business is UNP?
Union Pacific Corporation earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 7.3 points above what the capital costs: growth creates value
- Operating margin
- 40%
Operating margin · Railroads median 33% · 12 months to Q2 2026
- Cash conversion
- 0.89×
Cash conversion · 0.90× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −0.13%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 40% |
| FY2021 | 43% |
| FY2022 | 40% |
| FY2023 | 38% |
| FY2024 | 40% |
| FY2025 | 40% |
Details›
- Operating margin12 months to Q2 2026
- 40%
- Net margin12 months to Q2 2026
- 29%
- Free cash flow margin
- 26%
- Revenue, trailing twelve months
- $25.4B
- Free cash flow, trailing twelve months
- $6.50B
- Net income, trailing twelve months
- $7.33B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.