Is UNION PACIFIC CORP (UNP) Halal?

NYSE Industrials United States $141.8B
✓ HALAL
Confidence: 95/100
UNION PACIFIC CORP (UNP) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 21.8% against the AAOIFI threshold of 30%, UNION PACIFIC CORP comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Railroads), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 21.8%
/ 30%
1.0%
/ 30%
1.2%
/ 30%
0.23%
/ 5%
✓ HALAL
DJIM 21.8%
/ 33%
1.0%
/ 33%
1.2%
/ 33%
0.23%
/ 5%
✓ HALAL
MSCI 47.1%
/ 33%
2.2%
/ 33%
2.7%
/ 33%
0.23%
/ 5%
✗ NOT HALAL
S&P 21.8%
/ 33%
1.0%
/ 33%
1.2%
/ 33%
0.23%
/ 5%
✓ HALAL
FTSE 47.1%
/ 33%
2.2%
/ 33%
2.7%
/ 50%
0.23%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
19.9
Forward: 17.7
EPS
$11.99
Dividend Yield
231.0%
Payout: 45.4%
P/B Ratio
7.7
EV/EBITDA
13.9
EV: $173.0B
Revenue
$24.5B
Growth: -0.6%
Beta
1.0
Average volatility
Current Ratio
0.9

Profitability

Gross Margin 56.4%
Operating Margin 40.9%
Net Margin 29.1%
Return on Equity (ROE) 40.4%
Return on Assets (ROA) 9.1%

Cash Flow & Balance Sheet

Operating Cash Flow$9.3B
Free Cash Flow$5.5B
Total Debt$32.8B
Debt-to-Equity177.7
Current Ratio0.9
Total Assets$69.7B

Price & Trading

Last Close$239.19
50-Day MA$247.76
200-Day MA$232.12
Avg Volume3.3M
Beta1.0
52-Week Range
$204.66
$268.14

About UNION PACIFIC CORP (UNP)

CEO
Mr. Vincenzo James Vena
Employees
29,287
Website
Sector
Industrials
Industry
Railroads
Country
United States
Exchange
NYSE
Market Cap
$141.8B
Currency
USD

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. It offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, and ethanol and renewable biofuel producers; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers. The company was founded in 1862 and is headquartered in Omaha, Nebraska.

Purification Calculator

As a halal stock with 0.23% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

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Frequently Asked Questions

Is UNION PACIFIC CORP (UNP) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), UNION PACIFIC CORP is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is UNION PACIFIC CORP's debt ratio?

UNION PACIFIC CORP's debt ratio is 21.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 47.1%.

Does UNION PACIFIC CORP require dividend purification?

Yes, UNION PACIFIC CORP has an impermissible income ratio of 0.23%, which means 0.23% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are UNION PACIFIC CORP's key financial metrics?

UNION PACIFIC CORP has a market capitalization of $141.8B, trailing P/E ratio of 19.9, and revenue of $24.5B. The company maintains a gross margin of 56.4% and a net margin of 29.1%. Return on equity stands at 40.4%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.