NORFOLK SOUTHERN CORP (NFS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NFS - US6558441084 - Common Stock
254 EUR
+2 (+0.79%)
Taking everything into account, NFS scores 4 out of 10 in our fundamental rating. NFS was compared to 13 industry peers in the Ground Transportation industry. NFS has a medium profitability rating, but doesn't score so well on its financial health evaluation. NFS is valied quite expensively at the moment, while 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.
NFS had positive earnings in each of the past 5 years.
Each year in the past 5 years NFS had a positive operating cash flow.
1.2 Ratios
NFS has a Return On Assets of 6.64%. This is in the better half of the industry: NFS outperforms 73.33% of its industry peers.
NFS has a Return On Equity of 19.54%. This is comparable to the rest of the industry: NFS outperforms 60.00% of its industry peers.
NFS has a Return On Invested Capital of 8.30%. This is in the better half of the industry: NFS outperforms 73.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NFS is in line with the industry average of 8.63%.
| 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 73.33% 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 86.67% of the companies in the same industry.
NFS's Operating Margin has been stable in the last couple of years.
NFS's Gross Margin of 50.03% is on the low side compared to the rest of the industry. NFS is outperformed by 60.00% of 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
NFS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NFS has an improved debt to assets ratio.
2.2 Solvency
NFS has an Altman-Z score of 2.35. 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.
Looking at the Altman-Z score, with a value of 2.35, NFS is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
NFS has a debt to FCF ratio of 8.14. This is a slightly negative value and a sign of low solvency as NFS would need 8.14 years to pay back of 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 66.67% 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.
NFS's Debt to Equity ratio of 1.09 is fine compared to the rest of the industry. NFS outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 8.14 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.85
WACC9.72%
2.3 Liquidity
A Current Ratio of 0.86 indicates that NFS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.86, NFS is doing worse than 60.00% of the companies in the same industry.
NFS has a Quick 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.
Looking at the Quick ratio, with a value of 0.78, NFS is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
NFS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.93%.
Measured over the past 5 years, NFS shows a small growth in Earnings Per Share. The EPS has been growing by 2.93% on average per year.
NFS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.48%.
Measured over the past years, NFS shows a small growth in Revenue. The Revenue has been growing by 1.42% on average per year.
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 7.96% on average over the next years.
Based on estimates for the next years, NFS will show a small growth in Revenue. The Revenue will grow by 3.76% on average per year.
EPS Next Y3.82%
EPS Next 2Y5.83%
EPS Next 3Y7.56%
EPS Next 5Y7.96%
Revenue Next Year1%
Revenue Next 2Y2.12%
Revenue Next 3Y2.93%
Revenue Next 5Y3.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 24.14, which indicates a rather expensive current valuation of NFS.
66.67% of the companies in the same industry are cheaper than NFS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NFS to the average of the S&P500 Index (26.39), we can say NFS is valued inline with the index average.
A Price/Forward Earnings ratio of 22.43 indicates a rather expensive valuation of NFS.
Based on the Price/Forward Earnings ratio, NFS is valued a bit more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NFS to the average of the S&P500 Index (23.84), we can say NFS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.14 | ||
| Fwd PE | 22.43 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NFS.
Based on the Price/Free Cash Flow ratio, NFS is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.8 | ||
| EV/EBITDA | 14.43 |
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)6.33
PEG (5Y)8.25
EPS Next 2Y5.83%
EPS Next 3Y7.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.85%, NFS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.72, NFS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, NFS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
On average, the dividend of NFS grows each year by 8.41%, which is quite nice.
Dividend Growth(5Y)8.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
41.16% 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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.16%
EPS Next 2Y5.83%
EPS Next 3Y7.56%
FRA:NFS (12/16/2025, 7:00:00 PM)
254
+2 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners78.43%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap57.00B
Revenue(TTM)12.23B
Net Income(TTM)2.96B
Analysts71.11
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Yearly Dividend4.61
Dividend Growth(5Y)8.41%
DP41.16%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.55%
Min EPS beat(2)-1.39%
Max EPS beat(2)2.49%
EPS beat(4)2
Avg EPS beat(4)0.51%
Min EPS beat(4)-1.39%
Max EPS beat(4)2.49%
EPS beat(8)4
Avg EPS beat(8)0.52%
EPS beat(12)5
Avg EPS beat(12)-0.06%
EPS beat(16)7
Avg EPS beat(16)0.66%
Revenue beat(2)0
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)-1.18%
Revenue beat(4)0
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)-0.43%
Revenue beat(8)0
Avg Revenue beat(8)-1.37%
Revenue beat(12)1
Avg Revenue beat(12)-1.29%
Revenue beat(16)5
Avg Revenue beat(16)-0.53%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-23.34%
EPS NQ rev (3m)-23.34%
EPS NY rev (1m)-18.07%
EPS NY rev (3m)-18.07%
Revenue NQ rev (1m)-7.66%
Revenue NQ rev (3m)-7.66%
Revenue NY rev (1m)-7.14%
Revenue NY rev (3m)-7.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.14 | ||
| Fwd PE | 22.43 | ||
| P/S | 5.46 | ||
| P/FCF | 31.8 | ||
| P/OCF | 15.71 | ||
| P/B | 4.41 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 14.43 |
EPS(TTM)10.52
EY4.14%
EPS(NY)11.32
Fwd EY4.46%
FCF(TTM)7.99
FCFY3.14%
OCF(TTM)16.17
OCFY6.37%
SpS46.54
BVpS57.61
TBVpS57.61
PEG (NY)6.33
PEG (5Y)8.25
Graham Number116.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 19.54% | ||
| ROCE | 10.54% | ||
| ROIC | 8.3% | ||
| ROICexc | 8.6% | ||
| ROICexgc | 8.6% | ||
| OM | 35.39% | ||
| PM (TTM) | 24.19% | ||
| GM | 50.03% | ||
| FCFM | 17.16% |
ROA(3y)6.26%
ROA(5y)6.38%
ROE(3y)19.41%
ROE(5y)18.77%
ROIC(3y)9.15%
ROIC(5y)8.93%
ROICexc(3y)9.43%
ROICexc(5y)9.19%
ROICexgc(3y)9.43%
ROICexgc(5y)9.19%
ROCE(3y)11.62%
ROCE(5y)11.33%
ROICexgc growth 3Y-2.05%
ROICexgc growth 5Y0.88%
ROICexc growth 3Y-2.05%
ROICexc growth 5Y0.88%
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%
F-Score8
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 8.14 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 155.57% | ||
| Cap/Sales | 17.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.41% | ||
| Profit Quality | 70.94% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.35 |
F-Score8
WACC9.72%
ROIC/WACC0.85
Cap/Depr(3y)212.64%
Cap/Depr(5y)178.37%
Cap/Sales(3y)22.6%
Cap/Sales(5y)19.25%
Profit Quality(3y)38.72%
Profit Quality(5y)63.1%
High Growth Momentum
Growth
EPS 1Y (TTM)5.93%
EPS 3Y-0.78%
EPS 5Y2.93%
EPS Q2Q%1.54%
EPS Next Y3.82%
EPS Next 2Y5.83%
EPS Next 3Y7.56%
EPS Next 5Y7.96%
Revenue 1Y (TTM)0.48%
Revenue growth 3Y2.85%
Revenue growth 5Y1.42%
Sales Q2Q%1.7%
Revenue Next Year1%
Revenue Next 2Y2.12%
Revenue Next 3Y2.93%
Revenue Next 5Y3.76%
EBIT growth 1Y-2.13%
EBIT growth 3Y0.98%
EBIT growth 5Y2.8%
EBIT Next Year37.07%
EBIT Next 3Y15.58%
EBIT Next 5Y11.09%
FCF growth 1Y83.8%
FCF growth 3Y-78.42%
FCF growth 5Y-56.86%
OCF growth 1Y28.6%
OCF growth 3Y-1.62%
OCF growth 5Y0.81%
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 for NFS stock?
ChartMill assigns a valuation rating of 1 / 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 earnings growth outlook for NORFOLK SOUTHERN CORP?
The Earnings per Share (EPS) of NORFOLK SOUTHERN CORP (NFS.DE) is expected to grow by 3.82% in the next year.
Can you provide the dividend sustainability for NFS stock?
The dividend rating of NORFOLK SOUTHERN CORP (NFS.DE) is 4 / 10 and the dividend payout ratio is 41.16%.