UNP  Union Pacific Corporation

Exchange

NYSE

Sector

Transportation

Industry

Railroads

Market Cap.

74.675B

Poor Cash Return on Invested Capital over the past 5 years

UNP has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

UNP has only created $7.79 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20072008200920102011
Free Cash Flow 781.00M 1.29B 3.13B 4.11B 5.79B
divided by
Invested Capital 34.11B 35.59B 37.88B 39.05B 40.56B
Cash ROIC 2.29% 3.62% 8.27% 10.51% 14.27%

Growing Return on Equity over the past 5 years

UNP has been growing returns with capital that shareholders have invested. This is a positive sign and demonstrates that both the business and management performance are improving over time.

UNP has generated $14.32 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20072008200920102011
Net Income 1.86B 2.34B 1.90B 2.78B 3.29B
divided by
Stockholders' Equity 15.59B 15.45B 16.94B 17.76B 18.58B
Return on Equity 11.90% 15.14% 11.20% 15.65% 17.72%

Excellent Business Performance over the past 10 years

UNP has been able to maintain profitability in good times and bad. This could mean UNP has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

UNP has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Free Cash Flow -681.00M 670.00M 361.00M 426.00M 638.00M 781.00M 1.29B 3.13B 4.11B 5.79B