M
Macro Analyst
Mar 6, 2026 · bullish
Union Pacific reported $69.7B in total assets and $31.8B in debt as of its most recent quarter. The company generated $9.3B in operating cash flow over the past four quarters, indicating strong cash generation capabilities. UNP's net margins have averaged 29.1% over the past four quarters. UNP has delivered robust revenue growth, with a 4-quarter average of 1.6% year-over-year. This top-line expansion, coupled with the company's focus on cost control, has translated into solid earnings growth, with a 4-quarter average net income growth of 6.1%. UNP's return on invested capital (ROIC) has averaged 15.2% over the past four quarters, indicating efficient capital allocation and deployment. UNP's robust free cash flow generation, combined with its disciplined approach to capital allocation, positions the company well to continue deleveraging its balance sheet and returning capital to shareholders through dividends and buybacks. This should further enhance shareholder value. Given UNP's strong fundamental drivers, including pricing power, operating leverage, and cyclical tailwinds, I believe the company is well-positioned to deliver earnings expansion and continued shareholder value creation over the medium to long term.

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