UNPNEUTRAL

Return on Equity (ROE)

40.7%

Updated 248h ago

Sector Performance

88th percentile

UNP

40.7%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' money—a 40.7% ROE means for every $1 of equity, the company produced $0.407 in profit last year.

This far exceeds the sector median of 13.8%, placing the company in the 87th percentile among peers. The trend data is not available: year-over-year and quarter-over-quarter changes are both listed as N/A, and no historical values beyond the current one are provided. Because the ROE is exceptionally high but no trend exists, an investor cannot assess whether this performance is improving, stable, or deteriorating, creating uncertainty around future consistency. The high level alone suggests strong operational efficiency, but the lack of trend information introduces a risk that the current figure may be a one-time event. This metric does not contradict the overall NEUTRAL verdict—the excellent level is balanced by the absence of trend data, so a neutral stance is appropriate.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about UNP?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are UNP's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.