Price to Operating Profit (P/OP)
since 2005
Calculation
Union Pacific Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 7, 2025 | 15.06 | = | 242.08 | ÷ | 16.07 | 16.07 | = | 9,713 | ÷ | 604,286,378 | |
| Feb 9, 2024 | 16.75 | = | 249.45 | ÷ | 14.89 | 14.89 | = | 9,082 | ÷ | 609,777,914 | |
| Feb 10, 2023 | 12.68 | = | 205.50 | ÷ | 16.21 | 16.21 | = | 9,917 | ÷ | 611,872,981 | |
| Feb 4, 2022 | 16.53 | = | 242.39 | ÷ | 14.66 | 14.66 | = | 9,338 | ÷ | 636,898,957 | |
| Feb 5, 2021 | 17.46 | = | 204.20 | ÷ | 11.70 | 11.70 | = | 7,834 | ÷ | 669,829,363 | |
| Feb 7, 2020 | 14.83 | = | 183.83 | ÷ | 12.39 | 12.39 | = | 8,554 | ÷ | 690,261,490 | |
| Feb 8, 2019 | 13.73 | = | 161.72 | ÷ | 11.78 | 11.78 | = | 8,517 | ÷ | 722,877,817 | |
| Feb 9, 2018 | 12.30 | = | 127.28 | ÷ | 10.34 | 10.34 | = | 8,061 | ÷ | 779,305,276 | |
| Feb 3, 2017 | 12.14 | = | 108.51 | ÷ | 8.94 | 8.94 | = | 7,272 | ÷ | 813,795,240 | |
| Feb 5, 2016 | 7.89 | = | 75.03 | ÷ | 9.51 | 9.51 | = | 8,052 | ÷ | 846,414,350 | |
| Feb 6, 2015 | 12.26 | = | 121.81 | ÷ | 9.93 | 9.93 | = | 8,753 | ÷ | 881,284,029 | |
| Feb 7, 2014 | 10.81 | = | 88.45 | ÷ | 8.18 | 8.18 | = | 7,446 | ÷ | 910,115,218 | |
| Feb 8, 2013 | 9.26 | = | 66.58 | ÷ | 7.19 | 7.19 | = | 6,745 | ÷ | 938,597,464 | |
| Feb 3, 2012 | 9.74 | = | 58.06 | ÷ | 5.96 | 5.96 | = | 5,724 | ÷ | 960,135,730 | |
| Feb 4, 2011 | 9.29 | = | 47.13 | ÷ | 5.07 | 5.07 | = | 4,981 | ÷ | 982,002,832 | |
| Feb 5, 2010 | 9.25 | = | 31.05 | ÷ | 3.36 | 3.36 | = | 3,392 | ÷ | 1,010,572,736 | |
| Feb 6, 2009 | 6.09 | = | 24.64 | ÷ | 4.05 | 4.05 | = | 4,075 | ÷ | 1,006,387,066 | |
| Feb 28, 2008 | 9.75 | = | 31.57 | ÷ | 3.24 | 3.24 | = | 3,375 | ÷ | 1,042,802,108 | |
| Feb 23, 2007 | 9.75 | = | 25.97 | ÷ | 2.66 | 2.66 | = | 2,884 | ÷ | 1,083,009,224 | |
| Feb 24, 2006 | 13.19 | = | 22.12 | ÷ | 1.68 | 1.68 | = | 1,795 | ÷ | 1,070,337,948 |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Union Pacific Corp. Annual Report.
- Share Price Trend
- The share price exhibits an overall upward trend across the analyzed periods, starting at $22.12 in early 2006 and peaking near $249.45 in early 2024. Despite the general increase, fluctuations are apparent. Notable declines occurred around 2009 and significantly in 2016 and early 2023, indicating potential market or company-specific challenges during these times. The price recovered quickly after the 2009 dip and again post-2016 decline. Volatility is observed especially after 2015, with rapid rises and falls within short periods.
- Operating Profit per Share Pattern
- Operating profit per share shows a consistent rising trend from $1.68 in 2006 to a range between approximately $14.89 and $16.21 in the later years, with the highest values noted in 2023 and 2025. While some temporary declines are observed around 2015 and 2021, the general direction points to increased profitability on a per-share basis over time. The upward trend suggests effective management of operating efficiencies or growth in earnings capacity during the period considered.
- Price to Operating Profit Ratio (P/OP) Analysis
- The P/OP ratio fluctuates widely over the years, showing periods of low valuation relative to operating profit around 2009 with a trough at approximately 6.09, suggesting undervaluation or market pessimism. In contrast, a rising trend in the ratio is visible from 2014 onward, reaching peaks above 17, notably in 2021, possibly indicating market optimism or overvaluation relative to operating profit. Fluctuations in this ratio reflect changing investor sentiments, varying risk perceptions, or market conditions impacting the company's valuation independently of profit growth.
- Summary of Financial Ratios and Market Valuation
- While operating profit per share has steadily increased, indicating strengthening financial performance, share price volatility and fluctuating P/OP ratios reveal variable market confidence and valuation trends. The disconnect between steady profit growth and valuation ratios implies that external factors beyond operating performance, such as market cycles or sector-specific dynamics, influenced the company's stock price during this timeframe.
Comparison to Competitors
Union Pacific Corp., P/OP, long-term trends, comparison to competitors
| Union Pacific Corp. | FedEx Corp. | Uber Technologies Inc. | United Airlines Holdings Inc. | United Parcel Service Inc. | |
|---|---|---|---|---|---|
| Feb 7, 2025 | 15.06 | 13.40 | 59.27 | 5.92 | 11.64 |
| Feb 9, 2024 | 16.75 | 13.03 | 152.26 | 3.54 | 13.86 |
| Feb 10, 2023 | 12.68 | 9.07 | — | 6.86 | 11.70 |
| Feb 4, 2022 | 16.53 | 13.46 | — | — | 14.20 |
| Feb 5, 2021 | 17.46 | 17.79 | — | — | 18.23 |
| Feb 7, 2020 | 14.83 | 9.92 | — | 4.07 | 11.72 |
| Feb 8, 2019 | 13.73 | 12.57 | — | 7.11 | 13.69 |
| Feb 9, 2018 | 12.30 | 11.48 | — | 5.43 | 11.98 |
| Feb 3, 2017 | 12.14 | 13.87 | — | 5.41 | 17.14 |
| Feb 5, 2016 | 7.89 | 25.90 | — | 3.61 | 11.27 |
| Feb 6, 2015 | 12.26 | 12.51 | — | 11.01 | 18.48 |
| Feb 7, 2014 | 10.81 | 12.87 | — | 13.59 | 12.57 |
| Feb 8, 2013 | 9.26 | 9.13 | — | 224.23 | 58.68 |
| Feb 3, 2012 | 9.74 | 12.54 | — | 3.82 | 12.11 |
| Feb 4, 2011 | 9.29 | 12.16 | — | 8.23 | 12.40 |
| Feb 5, 2010 | 9.25 | 23.98 | — | — | 15.34 |
| Feb 6, 2009 | 6.09 | 11.54 | — | — | 7.62 |
| Feb 28, 2008 | 9.75 | 11.05 | — | 3.48 | 125.70 |
| Feb 23, 2007 | 9.75 | 11.08 | — | 9.70 | 11.27 |
| Feb 24, 2006 | 13.19 | 10.21 | — | — | 13.88 |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).