UNPNEUTRAL

UNP Return on Equity (ROE) Analysis

39.7%

Updated 273h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for every dollar of shareholders’ equity, with 39.7% indicating strong earnings efficiency.

Sector Performance

88th percentile

UNP

39.7%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

40.7%(Jul 2026)

↓ Declining

📊

Deep Analysis

Return on equity (ROE) measures how much profit a company generates for every dollar of shareholders’ equity, with 39.7% indicating strong earnings efficiency.

This level towers over the sector median of 13.5%, placing the company in the 88th percentile among its peers. The trend shows a year-over-year change that is N/A, while the quarter-over-quarter change is -2.5%, with historical values of 40.7% then 39.7%. The combination of a very high ROE with a slight quarterly pullback suggests a mature, well-run business facing minor near-term pressure, not a fundamental breakdown. For an investor, the high level signals a competitive advantage and low equity-based risk, but the -2.5% QoQ decline warrants attention for continued erosion. This metric generally supports the overall NEUTRAL verdict: the exceptional ROE justifies holding, yet the lack of upward momentum and modest decline temper enthusiasm for adding new exposure.

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: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

📚

Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.