UNPNEUTRAL

UNP FCF Yield Analysis

3.2%

Updated 987h ago·SEC filings & market data

Key Takeaway

Free cash flow yield measures the annual cash a company generates after capital spending as a percentage of its market value, currently 3.2% for UNP.

Sector Performance

37th percentile

UNP

3.2%

Sector Median

4.1%

Sector Avg

9.2%

Prior Period

3.0%(Aug 2026)

↑ Improving

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Deep Analysis

Free cash flow yield measures the annual cash a company generates after capital spending as a percentage of its market value, currently 3.2% for UNP.

That sits below the sector median of 4.1%, placing the stock at the 37th percentile among peers, meaning roughly two-thirds of comparable companies offer a higher yield. The metric is stable over the last eight quarters, with a year-over-year and quarter-over-quarter change of +6.7% each, and recent readings of 3.2%, 3.0%, 3.2%, 3.1%, then 3.0% show no clear upward or downward momentum. A level below the sector median suggests the stock is not cheap on a cash-flow basis, but the recent +6.7% improvement

Frequently Asked Questions

What does the FCF Yield tell investors about UNP?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

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Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.