UNP FCF Yield Analysis
Updated 273h ago·SEC filings & market data
Key Takeaway
Free cash flow yield measures the cash a company generates after capital spending relative to its market value; UNP's 3.0% means it returns $3.00 in free cash per $100 of equity price.
Sector Performance
35th percentileUNP
3.0%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
3.2%(Aug 2026)
Deep Analysis
Free cash flow yield measures the cash a company generates after capital spending relative to its market value; UNP's 3.0% means it returns $3.00 in free cash per $100 of equity price.
That yield sits below the sector median of 4.2%, placing UNP in the 35th percentile among peers, so most comparable companies offer higher cash returns. The metric is stable over the last eight quarters, with a year-over-year change of -6.3% and a quarter-over-quarter change of -6.3%, indicating no directional shift despite the slight drop. The combination of a below-median yield and a flat trend suggests limited immediate upside from cash generation, but also no deterioration that would raise urgent red flags. This consistent, moderate FCF yield aligns with an investment profile of steady but unexciting returns. Therefore, this metric supports the overall NEUTRAL verdict, neither pushing toward a buy nor signaling a sell.
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.
Who are UNP's closest peers by FCF Yield?
The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
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.
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3.0%
Sector Median
4.2%
Sector Avg
9.2%
How UNP's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.