Union Pacific Corporation UNP

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
77/100
Strong

About Union Pacific Corporation

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 … Full UNP analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 45.8% (top 0%) and operating margin at 40.2% (top 0%) indicate strong pricing power.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.91), demonstrating pricing resilience across cycles.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
94

Where UNP ranks in Railroads

Union Pacific Corporation ranks #2 of 12 scored companies in Railroads by moat score — the top 17%. The widest moat in the group is Canadian National Railway Compa (CNI) at 79/100.

Moat scores for companies ranked near UNP in Railroads
# Company Moat score Rating
1 Canadian National Railway Compa CNI 79/100 Strong
2 Union Pacific Corporation UNP 77/100 Strong
3 Westinghouse Air Brake Technolo WAB 72/100 Moderate
4 Canadian Pacific Kansas City Li CP 61/100 Moderate
5 Norfolk Southern Corporation NSC 54/100 Moderate
6 CSX Corporation CSX 52/100 Moderate
7 Trinity Industries, Inc. TRN 51/100 Moderate
8 L.B. Foster Company FSTR 46/100 Developing
9 Greenbrier Companies, Inc. (The GBX 36/100 Developing

See every General Corporate company ranked by moat score →

How UNP scores on the Corporate Default defenses

Pricing Power

Score 94 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 100 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 87 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 71 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 69 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 53 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding UNP's moat

What is Union Pacific Corporation's moat score?

Union Pacific Corporation (UNP) scores 77 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #2 of 12 scored companies in Railroads, the top 17%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 11 companies in Railroads. Its strongest defense is Cost Advantage (100/100) and its weakest is Scale & Market Position (53/100).

How does Union Pacific Corporation compare with other Railroads companies?

Union Pacific Corporation ranks #2 of 12 scored companies in Railroads by moat score. The widest moat in Railroads is Canadian National Railway Compa (CNI) at 79/100. The companies ranked closest are Canadian National Railway Compa (CNI) at 79 just above it and Westinghouse Air Brake Technolo (WAB) at 72 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 11 companies in Railroads. The defenses are then weighted to produce the overall score out of 100.

Why is Union Pacific Corporation scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Union Pacific Corporation?

The Corporate Default template measures 6 defenses, and UNP scores: Pricing Power (94), Cost Advantage (100), Customer Stickiness (87), Capital Efficiency (71), Resilience (69), Scale & Market Position (53). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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