The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 42 | 24.7x | 20.8x | Around median | |
Growth | 33 | 4.2% | 6.1% | Bottom tier | |
Quality | 82 | 15.8% | 6.6% | Top tier | |
Safety | 81 | 0.0x | 0.7x | Top tier | |
Capital Return | 45 | 1.80% | 2.02% | Around median | |
Momentum | 89 | 16.5% | 4.1% | Top tier | |
Sentiment | 61 | 15 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Union Pacific Corporation is a leader in the North American freight transportation sector, generating revenue by transporting bulk commodities, industrial products, and premium intermodal shipments across its extensive rail network in the western United States. The company relies on core pricing power, fuel surcharges, and high operational efficiency to generate profits, enabling it to serve vital sectors ranging from agriculture and coal to petrochemicals and automotive.
In the first quarter of 2026, the company reported record financial results despite a 1% decline in total freight volumes. Operating revenues reached $6.2 billion, a 3% year-over-year increase, driven by a 4% rise in freight revenues to $5.9 billion. Net income also grew by 5% to $1.7 billion, translating to earnings per share of $2.87, while the company demonstrated strict cost control that led to an 80 basis point improvement in the adjusted operating ratio, settling at 59.9% while generating $630 million in free cash flow.
The impending merger with Norfolk Southern represents a major focal point for the company's future, aiming to create America's first transcontinental railroad network. Management plans to submit an amended regulatory filing by April 30, targeting Surface Transportation Board approval in the second quarter of 2027. This strategic move, along with a commitment to achieving a compound annual growth rate in EPS ranging from high single digits to low double digits through 2027, supports the positive narrative for the company's long-term growth.
Union Pacific stock is currently trading below the analyst consensus price target of $303.1, indicating room for growth according to market estimates. The stock holds a consensus Buy rating, with optimistic projections reaching a maximum target of $363, supported by improving operating margins and strategic merger prospects. This valuation reflects investor confidence in the company's ability to achieve sustainable EPS growth despite short-term challenges related to fuel costs.
Figures in the text are as of 2026-07-23; the live price is shown at the top of the page.
During the first quarter 2026 earnings call, management stated that they will submit an amended regulatory filing to the Surface Transportation Board on April 30. The company expects to receive final approval by the second quarter of 2027, which will pave the way for the creation of America's first transcontinental railroad network. This strategic transaction aims to reduce transit times and decrease reliance on trucks by providing seamless, direct service to customers across the country.
Fuel costs presented a notable challenge, with fuel expenses rising by 7% during the first quarter of 2026 as a result of the average price per gallon increasing from $2.51 to $2.69. Management indicated that this upward trend continued into April as prices crossed the $4 per gallon threshold, which will place additional pressure on second-quarter margins. Despite this, the company managed to offset a portion of these costs by increasing fuel surcharge revenues by $43 million.
The bulk cargo segment was the most prominent driver of growth, with revenues rising by 10% driven by a 12% increase in volumes. This segment benefited from strong demand for coal by utility companies, in addition to achieving record volumes in grain exports to China and Mexico. The industrial segment also contributed with a 5% revenue increase thanks to new construction projects, LNG terminals, and the development of the petrochemical business.
Automated analysis for informational purposes only — not investment advice.
The company achieved record levels of operational efficiency during the first quarter, as freight car velocity increased by 9% to reach 235 miles per day. It also recorded its best terminal dwell time of 19.7 hours, an 11% improvement compared to last year. The company is increasingly relying on technology and artificial intelligence in automated routing systems to reduce manual interventions and improve workforce productivity, which rose by 7%.
Yes, the company faced a sharp 28% decline in international intermodal volumes during the first quarter due to lower West Coast imports. A slowdown in auto sales also placed additional pressure on vehicle shipping volumes, although the company won new contracts with BMW to offset part of this shortfall. Management is working to balance these negative declines by focusing on domestic intermodal transportation, which has set records for three consecutive quarters.