NORFOLK SOUTHERN CORP (NSC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NSC - US6558441084 - Common Stock
289.1 USD
+8.71 (+3.11%)
289.17 USD
+0.07 (+0.02%)
Taking everything into account, NSC scores 5 out of 10 in our fundamental rating. NSC was compared to 42 industry peers in the Ground Transportation industry. While NSC belongs to the best of the industry regarding profitability, there are concerns on its financial health. NSC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year NSC was profitable.
- In the past year NSC had a positive cash flow from operations.
- In the past 5 years NSC has always been profitable.
- Each year in the past 5 years NSC had a positive operating cash flow.
1.2 Ratios
- NSC's Return On Assets of 6.64% is fine compared to the rest of the industry. NSC outperforms 73.81% of its industry peers.
- With an excellent Return On Equity value of 19.54%, NSC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- NSC has a better Return On Invested Capital (8.30%) than 78.57% of its industry peers.
- NSC had an Average Return On Invested Capital over the past 3 years of 9.15%. This is above the industry average of 6.93%.
| 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
- Looking at the Profit Margin, with a value of 24.19%, NSC belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
- In the last couple of years the Profit Margin of NSC has declined.
- NSC's Operating Margin of 35.39% is amongst the best of the industry. NSC outperforms 92.86% of its industry peers.
- In the last couple of years the Operating Margin of NSC has remained more or less at the same level.
- NSC's Gross Margin of 50.03% is fine compared to the rest of the industry. NSC outperforms 61.90% of its industry peers.
- In the last couple of years the Gross Margin of NSC has grown nicely.
| 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
- NSC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for NSC has been increased compared to 1 year ago.
- The number of shares outstanding for NSC has been reduced compared to 5 years ago.
- NSC has a better debt/assets ratio than last year.
2.2 Solvency
- NSC has an Altman-Z score of 2.31. This is not the best score and indicates that NSC is in the grey zone with still only limited risk for bankruptcy at the moment.
- NSC has a Altman-Z score (2.31) which is in line with its industry peers.
- NSC has a debt to FCF ratio of 8.14. This is a slightly negative value and a sign of low solvency as NSC would need 8.14 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 8.14, NSC is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- A Debt/Equity ratio of 1.09 is on the high side and indicates that NSC has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.09, NSC is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 8.14 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.83
WACC9.97%
2.3 Liquidity
- A Current Ratio of 0.86 indicates that NSC may have some problems paying its short term obligations.
- With a Current ratio value of 0.86, NSC is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
- A Quick Ratio of 0.78 indicates that NSC may have some problems paying its short term obligations.
- The Quick ratio of NSC (0.78) is worse than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- NSC 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, NSC shows a small growth in Earnings Per Share. The EPS has been growing by 2.93% on average per year.
- Looking at the last year, NSC shows a small growth in Revenue. The Revenue has grown by 0.48% in the last year.
- Measured over the past years, NSC 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 7.56% on average over the next years.
- Based on estimates for the next years, NSC will show a small growth in Revenue. The Revenue will grow by 3.64% on average per year.
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
- 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
- With a Price/Earnings ratio of 23.47, NSC is valued on the expensive side.
- Based on the Price/Earnings ratio, NSC is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
- NSC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 22.15, NSC is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, NSC is valued a bit cheaper than the industry average as 69.05% of the companies are valued more expensively.
- NSC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 22.15 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NSC is on the same level as its industry peers.
- NSC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NSC is cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.91 | ||
| EV/EBITDA | 14.1 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NSC does not grow enough to justify the current Price/Earnings ratio.
- NSC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.8
PEG (5Y)8.02
EPS Next 2Y4.99%
EPS Next 3Y6.94%
5. Dividend
5.1 Amount
- NSC has a Yearly Dividend Yield of 1.86%.
- NSC's Dividend Yield is rather good when compared to the industry average which is at 0.70. NSC pays more dividend than 85.71% of the companies in the same industry.
- NSC's Dividend Yield is comparable with the S&P500 average which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
- On average, the dividend of NSC grows each year by 8.41%, which is quite nice.
- NSC has paid a dividend for at least 10 years, which is a reliable track record.
- NSC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.41%
Div Incr Years0
Div Non Decr Years23
5.3 Sustainability
- 41.16% of the earnings are spent on dividend by NSC. This is a bit on the high side, but may be sustainable.
- NSC'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%
289.1
+8.71 (+3.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)10-23 2025-10-23/amc
Earnings (Next)01-29 2026-01-29/amc
Inst Owners78.29%
Inst Owner Change-0.35%
Ins Owners0.02%
Ins Owner Change0.51%
Market Cap64.87B
Revenue(TTM)12.23B
Net Income(TTM)2.96B
Analysts70.37
Price Target317.23 (9.73%)
Short Float %3.81%
Short Ratio6.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend5.4
Dividend Growth(5Y)8.41%
DP41.16%
Div Incr Years0
Div Non Decr Years23
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)0.07%
PT rev (3m)3.44%
EPS NQ rev (1m)-3.7%
EPS NQ rev (3m)-13.14%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-3.55%
Revenue NQ rev (1m)-1.14%
Revenue NQ rev (3m)-3.34%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 22.15 | ||
| P/S | 5.3 | ||
| P/FCF | 30.91 | ||
| P/OCF | 15.27 | ||
| P/B | 4.28 | ||
| P/tB | 4.28 | ||
| EV/EBITDA | 14.1 |
EPS(TTM)12.32
EY4.26%
EPS(NY)13.05
Fwd EY4.51%
FCF(TTM)9.35
FCFY3.24%
OCF(TTM)18.94
OCFY6.55%
SpS54.5
BVpS67.48
TBVpS67.48
PEG (NY)6.8
PEG (5Y)8.02
Graham Number136.76
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 | 2.31 |
F-Score8
WACC9.97%
ROIC/WACC0.83
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 Y3.45%
EPS Next 2Y4.99%
EPS Next 3Y6.94%
EPS Next 5Y7.56%
Revenue 1Y (TTM)0.48%
Revenue growth 3Y2.85%
Revenue growth 5Y1.42%
Sales Q2Q%1.7%
Revenue Next Year0.7%
Revenue Next 2Y1.79%
Revenue Next 3Y2.78%
Revenue Next 5Y3.64%
EBIT growth 1Y-2.13%
EBIT growth 3Y0.98%
EBIT growth 5Y2.8%
EBIT Next Year36.78%
EBIT Next 3Y15.16%
EBIT Next 5Y10.97%
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 / NSC FAQ
What is the ChartMill fundamental rating of NORFOLK SOUTHERN CORP (NSC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to NSC.
What is the valuation status of NORFOLK SOUTHERN CORP (NSC) stock?
ChartMill assigns a valuation rating of 4 / 10 to NORFOLK SOUTHERN CORP (NSC). This can be considered as Fairly Valued.
What is the profitability of NSC stock?
NORFOLK SOUTHERN CORP (NSC) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for NSC stock?
The Earnings per Share (EPS) of NORFOLK SOUTHERN CORP (NSC) is expected to grow by 3.45% in the next year.
Is the dividend of NORFOLK SOUTHERN CORP sustainable?
The dividend rating of NORFOLK SOUTHERN CORP (NSC) is 6 / 10 and the dividend payout ratio is 41.16%.