NORFOLK SOUTHERN CORP (NFS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NFS - US6558441084 - Common Stock
248 EUR
+10 (+4.2%)
Overall NFS gets a fundamental rating of 4 out of 10. We evaluated NFS against 14 industry peers in the Ground Transportation industry. NFS has an average financial health and profitability rating. NFS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- NFS had positive earnings in the past year.
- NFS had a positive operating cash flow in the past year.
- Each year in the past 5 years NFS has been profitable.
- NFS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.64%, NFS is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- NFS has a Return On Equity (19.54%) which is in line with its industry peers.
- The Return On Invested Capital of NFS (8.30%) is better than 71.43% of its industry peers.
- NFS had an Average Return On Invested Capital over the past 3 years of 9.15%. This is in line with the industry average of 9.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 19.54% | ||
| ROIC | 8.3% |
ROA(3y)6.26%
ROA(5y)6.38%
ROE(3y)19.41%
ROE(5y)18.77%
ROIC(3y)9.15%
ROIC(5y)8.93%
1.3 Margins
- NFS's Profit Margin of 24.19% is fine compared to the rest of the industry. NFS outperforms 71.43% of its industry peers.
- In the last couple of years the Profit Margin of NFS has declined.
- Looking at the Operating Margin, with a value of 35.39%, NFS belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- In the last couple of years the Operating Margin of NFS has remained more or less at the same level.
- NFS has a Gross Margin (50.03%) which is in line with its industry peers.
- NFS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.39% | ||
| PM (TTM) | 24.19% | ||
| GM | 50.03% |
OM growth 3Y-1.82%
OM growth 5Y1.35%
PM growth 3Y-7.11%
PM growth 5Y-2.12%
GM growth 3Y-0.74%
GM growth 5Y1.7%
2. Health
2.1 Basic Checks
- NFS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, NFS has more shares outstanding
- Compared to 5 years ago, NFS has less shares outstanding
- The debt/assets ratio for NFS has been reduced compared to a year ago.
2.2 Solvency
- NFS has an Altman-Z score of 2.33. This is not the best score and indicates that NFS is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.33, NFS is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- The Debt to FCF ratio of NFS is 8.14, which is on the high side as it means it would take NFS, 8.14 years of fcf income to pay off all of its debts.
- NFS has a Debt to FCF ratio of 8.14. This is in the better half of the industry: NFS outperforms 64.29% of its industry peers.
- A Debt/Equity ratio of 1.09 is on the high side and indicates that NFS has dependencies on debt financing.
- With a decent Debt to Equity ratio value of 1.09, NFS is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 8.14 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.84
WACC9.88%
2.3 Liquidity
- NFS has a Current Ratio of 0.86. This is a bad value and indicates that NFS is not financially healthy enough and could expect problems in meeting its short term obligations.
- NFS has a Current ratio of 0.86. This is comparable to the rest of the industry: NFS outperforms 42.86% of its industry peers.
- A Quick Ratio of 0.78 indicates that NFS may have some problems paying its short term obligations.
- The Quick ratio of NFS (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.93% over the past year.
- NFS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.93% yearly.
- Looking at the last year, NFS shows a small growth in Revenue. The Revenue has grown by 0.48% in the last year.
- The Revenue has been growing slightly by 1.42% on average over the past years.
EPS 1Y (TTM)5.93%
EPS 3Y-0.78%
EPS 5Y2.93%
EPS Q2Q%1.54%
Revenue 1Y (TTM)0.48%
Revenue growth 3Y2.85%
Revenue growth 5Y1.42%
Sales Q2Q%1.7%
3.2 Future
- The Earnings Per Share is expected to grow by 7.56% on average over the next years.
- NFS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.64% yearly.
EPS Next Y3.45%
EPS Next 2Y4.99%
EPS Next 3Y6.94%
EPS Next 5Y7.56%
Revenue Next Year0.7%
Revenue Next 2Y1.79%
Revenue Next 3Y2.78%
Revenue Next 5Y3.64%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 23.82, which indicates a rather expensive current valuation of NFS.
- 64.29% of the companies in the same industry are cheaper than NFS, based on the Price/Earnings ratio.
- NFS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- NFS is valuated rather expensively with a Price/Forward Earnings ratio of 22.49.
- NFS's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of NFS to the average of the S&P500 Index (25.98), we can say NFS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 22.49 |
4.2 Price Multiples
- NFS's Enterprise Value to EBITDA is on the same level as the industry average.
- NFS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.38 | ||
| EV/EBITDA | 14.28 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of NFS may justify a higher PE ratio.
PEG (NY)6.91
PEG (5Y)8.14
EPS Next 2Y4.99%
EPS Next 3Y6.94%
5. Dividend
5.1 Amount
- NFS has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
- NFS's Dividend Yield is comparable with the industry average which is at 1.59.
- Compared to an average S&P500 Dividend Yield of 1.82, NFS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
- The dividend of NFS is nicely growing with an annual growth rate of 8.41%!
Dividend Growth(5Y)8.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- NFS pays out 41.16% of its income as dividend. This is a bit on the high side, but may be sustainable.
- NFS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.16%
EPS Next 2Y4.99%
EPS Next 3Y6.94%
NORFOLK SOUTHERN CORP / NFS.DE FAQ
What is the fundamental rating for NFS stock?
ChartMill assigns a fundamental rating of 4 / 10 to NFS.DE.
What is the valuation status of NORFOLK SOUTHERN CORP (NFS.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to NORFOLK SOUTHERN CORP (NFS.DE). This can be considered as Overvalued.
Can you provide the profitability details for NORFOLK SOUTHERN CORP?
NORFOLK SOUTHERN CORP (NFS.DE) has a profitability rating of 6 / 10.
What is the financial health of NORFOLK SOUTHERN CORP (NFS.DE) stock?
The financial health rating of NORFOLK SOUTHERN CORP (NFS.DE) is 4 / 10.
How sustainable is the dividend of NORFOLK SOUTHERN CORP (NFS.DE) stock?
The dividend rating of NORFOLK SOUTHERN CORP (NFS.DE) is 4 / 10 and the dividend payout ratio is 41.16%.