NORFOLK SOUTHERN CORP (NFS.DE) Fundamental Analysis & Valuation
FRA:NFS • US6558441084
270 EUR
+6 (+2.27%)
Last: Mar 6, 2026, 07:00 PM
This NFS.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 4 out of 10 to NFS. NFS was compared to 16 industry peers in the Ground Transportation industry. NFS scores excellent on profitability, but there are concerns on its financial health. NFS is valied quite expensively at the moment, while it does show a decent growth rate.
1. NFS.DE Profitability Analysis
1.1 Basic Checks
- NFS had positive earnings in the past year.
- NFS had a positive operating cash flow in the past year.
- In the past 5 years NFS has always been profitable.
- Each year in the past 5 years NFS had a positive operating cash flow.
1.2 Ratios
- NFS's Return On Assets of 6.34% is fine compared to the rest of the industry. NFS outperforms 68.75% of its industry peers.
- With a decent Return On Equity value of 18.46%, NFS is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 7.97%, NFS is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NFS is in line with the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 18.46% | ||
| ROIC | 7.97% |
ROA(3y)5.57%
ROA(5y)6.58%
ROE(3y)17.01%
ROE(5y)19.74%
ROIC(3y)8.31%
ROIC(5y)9.01%
1.3 Margins
- The Profit Margin of NFS (23.56%) is better than 81.25% of its industry peers.
- In the last couple of years the Profit Margin of NFS has grown nicely.
- NFS has a Operating Margin of 34.52%. This is amongst the best in the industry. NFS outperforms 87.50% of its industry peers.
- 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 (49.40%) which is comparable to the rest of the industry.
- NFS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.52% | ||
| PM (TTM) | 23.56% | ||
| GM | 49.4% |
OM growth 3Y-2.93%
OM growth 5Y-0.05%
PM growth 3Y-2.78%
PM growth 5Y2.79%
GM growth 3Y-0.48%
GM growth 5Y-0.02%
2. NFS.DE Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NFS is destroying value.
- NFS has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, NFS has less shares outstanding
- NFS has a better debt/assets ratio than last year.
2.2 Solvency
- NFS has an Altman-Z score of 2.36. 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.
- NFS has a better Altman-Z score (2.36) than 75.00% of its industry peers.
- The Debt to FCF ratio of NFS is 7.92, which is on the high side as it means it would take NFS, 7.92 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 7.92, NFS is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
- A Debt/Equity ratio of 1.06 is on the high side and indicates that NFS has dependencies on debt financing.
- The Debt to Equity ratio of NFS (1.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 7.92 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.78
WACC10.17%
2.3 Liquidity
- NFS has a Current Ratio of 0.85. This is a bad value and indicates that NFS is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.85, NFS is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
- A Quick Ratio of 0.78 indicates that NFS may have some problems paying its short term obligations.
- With a Quick ratio value of 0.78, NFS is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.78 |
3. NFS.DE Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 5.57% over the past year.
- Measured over the past 5 years, NFS shows a small growth in Earnings Per Share. The EPS has been growing by 6.21% on average per year.
- Looking at the last year, NFS shows a small growth in Revenue. The Revenue has grown by 0.47% in the last year.
- The Revenue has been growing slightly by 4.47% on average over the past years.
EPS 1Y (TTM)5.57%
EPS 3Y-3.48%
EPS 5Y6.21%
EPS Q2Q%5.92%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y-1.5%
Revenue growth 5Y4.47%
Sales Q2Q%-1.65%
3.2 Future
- The Earnings Per Share is expected to grow by 8.05% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.58% on average over the next years.
EPS Next Y-0.9%
EPS Next 2Y5.01%
EPS Next 3Y6.67%
EPS Next 5Y8.05%
Revenue Next Year1.97%
Revenue Next 2Y3.37%
Revenue Next 3Y3.67%
Revenue Next 5Y4.58%
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 stable: in the next years the growth will be about the same than in the last years.
4. NFS.DE Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 25.09, NFS can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as NFS.
- The average S&P500 Price/Earnings ratio is at 26.29. NFS is around the same levels.
- A Price/Forward Earnings ratio of 25.32 indicates a quite expensive valuation of NFS.
- 75.00% of the companies in the same industry are cheaper than NFS, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.57. NFS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.09 | ||
| Fwd PE | 25.32 |
4.2 Price Multiples
- 62.50% of the companies in the same industry are more expensive than NFS, based on the Enterprise Value to EBITDA ratio.
- NFS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.64 | ||
| EV/EBITDA | 15.08 |
4.3 Compensation for Growth
- NFS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.04
EPS Next 2Y5.01%
EPS Next 3Y6.67%
5. NFS.DE Dividend Analysis
5.1 Amount
- NFS has a Yearly Dividend Yield of 1.73%.
- NFS's Dividend Yield is comparable with the industry average which is at 1.95.
- 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 | 1.73% |
5.2 History
- On average, the dividend of NFS grows each year by 7.45%, which is quite nice.
Dividend Growth(5Y)7.45%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 42.33% of the earnings are spent on dividend by NFS. This is a bit on the high side, but may be sustainable.
- The dividend of NFS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP42.33%
EPS Next 2Y5.01%
EPS Next 3Y6.67%
NFS.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:NFS (3/6/2026, 7:00:00 PM)
270
+6 (+2.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-21 2026-04-21/bmo
Inst Owners78.29%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap60.59B
Revenue(TTM)12.18B
Net Income(TTM)2.87B
Analysts69.63
Price Target265.85 (-1.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend4.57
Dividend Growth(5Y)7.45%
DP42.33%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.97%
Min EPS beat(2)2.49%
Max EPS beat(2)15.45%
EPS beat(4)2
Avg EPS beat(4)3.89%
Min EPS beat(4)-1.39%
Max EPS beat(4)15.45%
EPS beat(8)5
Avg EPS beat(8)2.73%
EPS beat(12)6
Avg EPS beat(12)1.36%
EPS beat(16)7
Avg EPS beat(16)1.52%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)-1.18%
Revenue beat(4)0
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)-0.43%
Revenue beat(8)0
Avg Revenue beat(8)-1.45%
Revenue beat(12)0
Avg Revenue beat(12)-1.45%
Revenue beat(16)4
Avg Revenue beat(16)-0.65%
PT rev (1m)27%
PT rev (3m)27%
EPS NQ rev (1m)-6.38%
EPS NQ rev (3m)-10.46%
EPS NY rev (1m)-3.45%
EPS NY rev (3m)-6.9%
Revenue NQ rev (1m)-1.27%
Revenue NQ rev (3m)-2.39%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.09 | ||
| Fwd PE | 25.32 | ||
| P/S | 5.78 | ||
| P/FCF | 32.64 | ||
| P/OCF | 16.14 | ||
| P/B | 4.53 | ||
| P/tB | 4.53 | ||
| EV/EBITDA | 15.08 |
EPS(TTM)10.76
EY3.99%
EPS(NY)10.66
Fwd EY3.95%
FCF(TTM)8.27
FCFY3.06%
OCF(TTM)16.73
OCFY6.19%
SpS46.71
BVpS59.63
TBVpS59.63
PEG (NY)N/A
PEG (5Y)4.04
Graham Number120.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.34% | ||
| ROE | 18.46% | ||
| ROCE | 10.14% | ||
| ROIC | 7.97% | ||
| ROICexc | 8.27% | ||
| ROICexgc | 8.27% | ||
| OM | 34.52% | ||
| PM (TTM) | 23.56% | ||
| GM | 49.4% | ||
| FCFM | 17.71% |
ROA(3y)5.57%
ROA(5y)6.58%
ROE(3y)17.01%
ROE(5y)19.74%
ROIC(3y)8.31%
ROIC(5y)9.01%
ROICexc(3y)8.65%
ROICexc(5y)9.29%
ROICexgc(3y)8.65%
ROICexgc(5y)9.29%
ROCE(3y)10.57%
ROCE(5y)11.47%
ROICexgc growth 3Y-7.82%
ROICexgc growth 5Y1.52%
ROICexc growth 3Y-7.82%
ROICexc growth 5Y1.52%
OM growth 3Y-2.93%
OM growth 5Y-0.05%
PM growth 3Y-2.78%
PM growth 5Y2.79%
GM growth 3Y-0.48%
GM growth 5Y-0.02%
F-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 7.92 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 158.22% | ||
| Cap/Sales | 18.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.92% | ||
| Profit Quality | 75.16% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.36 |
F-Score6
WACC10.17%
ROIC/WACC0.78
Cap/Depr(3y)212.2%
Cap/Depr(5y)184.12%
Cap/Sales(3y)23.54%
Cap/Sales(5y)19.82%
Profit Quality(3y)40.58%
Profit Quality(5y)56.81%
High Growth Momentum
Growth
EPS 1Y (TTM)5.57%
EPS 3Y-3.48%
EPS 5Y6.21%
EPS Q2Q%5.92%
EPS Next Y-0.9%
EPS Next 2Y5.01%
EPS Next 3Y6.67%
EPS Next 5Y8.05%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y-1.5%
Revenue growth 5Y4.47%
Sales Q2Q%-1.65%
Revenue Next Year1.97%
Revenue Next 2Y3.37%
Revenue Next 3Y3.67%
Revenue Next 5Y4.58%
EBIT growth 1Y-8.19%
EBIT growth 3Y-4.38%
EBIT growth 5Y4.42%
EBIT Next Year34.01%
EBIT Next 3Y14.92%
EBIT Next 5Y11%
FCF growth 1Y7603.57%
FCF growth 3Y-1.75%
FCF growth 5Y0.13%
OCF growth 1Y7.63%
OCF growth 3Y1.09%
OCF growth 5Y3.7%
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 7 / 10.
What is the financial health of NORFOLK SOUTHERN CORP (NFS.DE) stock?
The financial health rating of NORFOLK SOUTHERN CORP (NFS.DE) is 3 / 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 42.33%.