Industrials · NYSE/NASDAQ: UNP

UNION PACIFIC CORP

Railroads
Market Cap $158.71B
Verdict: High

Quality Scores

Multi-Bagger
72/100
Compounder Quality
89/100
Management Credibility
90/100
Governance
88/100
Cash Flow Quality
92/100

AI Summary

Union Pacific (UNP) remains a cornerstone of North American logistics, demonstrating resilient pricing power and essential infrastructure status despite cyclical industrial headwinds. The financial data reveals two distinct phases: a pre-2021 period of moderate earnings and a massive scale-up from 2021 onward, with revenue stabilizing near $24B. While net margins remain impressive, the company has aggressively leveraged its balance sheet to fund shareholder returns, leading to a significant contraction in stockholders' equity over the decade. The shift toward Precision Scheduled Railroading…

Top Opportunities

  • Natural duopoly in Western US rail
  • Consistently high operating margins near 40%
  • Strong pricing power in key commodity segments

Top Risks

  • Significant long-term debt levels for buyback funding
  • Negative or low net worth due to aggressive capital return
  • Sensitivity to global trade and tariff policies

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