Union PacificLTS:0R2E +0.86%89 Gross Margin % is 45.39% as of Mar. 2026, which is 2% above its 10-year median of 44.67. GuruFocus rates LTS:0R2E with a GF Score™ of 89/100 and a GF Value™ of $244.58 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 978 Transportation companies, Union Pacific ranks better than 85.28% on this metric.
The historical rank and industry rank for Union Pacific's Gross Margin % or its related term are showing as below:
LTS:0R2E'
s Gross Margin % Range Over the Past 10 Years
Min: 41.32 Med: 44.67 Max: 48.22
Current: 45.8
During the past 13 years, the highestGross Margin % of Union Pacific was 48.22%. The lowest was 41.32%. And the median was 44.67%.
LTS:0R2E's Gross Margin % is ranked better than 85.28% of 978
companies
in the Transportation industry
Industry Median: 20.5
vs LTS:0R2E: 45.80
Union Pacific had a gross margin of 45.39% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Union Pacific was -1.00% per year.
Union Pacific (LTS:0R2E) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Union Pacific had a gross margin of 45.39% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Union Pacific Gross Margin % Related Terms
Union Pacific Gross Margin % Historical Data
* Premium members only.
The historical data trend for Union Pacific's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0R2E vs CSX, NSC, WAB: Gross Margin % Comparison
For the Railroads subindustry, Union Pacific's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Union Pacific Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Union Pacific's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Union Pacific's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Union Pacific (LTS:0R2E) has a Gross Margin % of 45.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Union Pacific and its competitors. This is near median its historical median of 44.67. Over the past decade, Union Pacific's Gross Margin % has ranged from 41.32 to 48.22. According to the industry distribution chart, Union Pacific ranks #144 out of 978 companies in the Transportation industry, placing it in the top 14.7%.
Is Union Pacific's Gross Margin % too high?
Union Pacific's current Gross Margin % of 45.39% is near median its 10-year median of 44.67. Over the past 10 years, this metric has ranged from a low of 41.32 to a high of 48.22. The Transportation industry median Gross Margin % is 20.50. Union Pacific's value of 45.39% is 121.4% above this industry median. Based on the distribution chart, Union Pacific ranks #144 out of 978 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Union Pacific has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Union Pacific's Gross Margin % compare to CSX and NSC?
According to the Transportation industry distribution chart, Union Pacific ranks #144 out of 978 companies for Gross Margin %. This places Union Pacific in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.50. Union Pacific's value of 45.39% is 121.4% above this benchmark. Historically, Union Pacific's own Gross Margin % has ranged from 41.32 to 48.22 over the past decade. While the company's 10-year median is 44.67 vs. the industry median of 20.50, Union Pacific has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Transportation company?
The median Gross Margin % among Transportation companies is 20.50, based on 978 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Union Pacific's current Gross Margin % of 45.39% is 121.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Union Pacific and its competitors. For the Transportation industry, the median Gross Margin % is 20.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Union Pacific's current Gross Margin % is 45.39%, which is near median its own 10-year median of 44.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Union Pacific stock overvalued right now?
Based on GuruFocus' analysis, Union Pacific (LTS:0R2E) is currently considered Modestly Overvalued. The stock's GF Value™ is $244.58, compared to a current price of $280.25 — trading 14.6% above its estimated fair value. The current Gross Margin % is 45.39%, which is near median its 10-year median of 44.67 and 121.4% above the Transportation industry median of 20.50. Union Pacific's overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Union Pacific (LTS:0R2E), the current Gross Margin % is 45.39% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Union Pacific (LTS:0R2E) Overvalued in 2026?
Based on GuruFocus' analysis, Union Pacific stock appears to be overvalued.
The current stock price of $280.25 is trading 14.6% above its estimated GF Value™ of $244.58.
GuruFocus considers Union Pacific to be Modestly Overvalued.
Key valuation signals for LTS:0R2E:
Gross Margin %: 45.39% (near median its 10-year median of 44.67)
GF Value™: $244.58 vs. price of $280.25 (14.6% above fair value)
Industry Position: 121.4% above the Transportation median (#144 of 978)
No single metric tells the full story. See the LTS:0R2E stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Omaha, Nebraska-based Union Pacific is the largest public railroad in North America. Operating on more than 30,000 miles of track in the western two-thirds of the US, Union Pacific generated $24.5 billion of revenue in 2025 by hauling coal, industrial products, intermodal containers, agricultural goods, chemicals, fertilizers, and automotive goods. Union Pacific owns about one-fourth of Mexican railroad Ferromex and historically derives roughly 10% of its revenue hauling freight to and from Mexico.
89GF Score
Get the complete analysis for LTS:0R2E
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LTS:0R2E has been successfully added to your 
