NORFOLK SOUTHERN CORP (NSC) Stock Fundamental Analysis

NYSE:NSC • US6558441084

314.05 USD
-2.71 (-0.86%)
At close: Feb 19, 2026
314.05 USD
0 (0%)
After Hours: 2/19/2026, 4:18:33 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

NSC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 42 industry peers in the Ground Transportation industry. NSC scores excellent on profitability, but there are concerns on its financial health. NSC has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • NSC had positive earnings in the past year.
  • NSC had a positive operating cash flow in the past year.
  • Of the past 5 years NSC 4 years were profitable.
  • Of the past 5 years NSC 4 years had a positive operating cash flow.
NSC Yearly Net Income VS EBIT VS OCF VS FCFNSC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

1.2 Ratios

  • NSC has a Return On Assets of 6.64%. This is in the better half of the industry: NSC outperforms 73.81% of its industry peers.
  • The Return On Equity of NSC (19.54%) is better than 83.33% of its industry peers.
  • NSC's Return On Invested Capital of 8.30% is fine compared to the rest of the industry. NSC outperforms 73.81% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for NSC is in line with the industry average of 7.38%.
Industry RankSector 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%
NSC Yearly ROA, ROE, ROICNSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • The Profit Margin of NSC (24.19%) is better than 88.10% of its industry peers.
  • NSC's Profit Margin has declined in the last couple of years.
  • NSC has a Operating Margin of 35.39%. This is amongst the best in the industry. NSC outperforms 92.86% of its industry peers.
  • NSC's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of NSC (50.03%) is better than 61.90% of its industry peers.
  • In the last couple of years the Gross Margin of NSC has grown nicely.
Industry RankSector 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%
NSC Yearly Profit, Operating, Gross MarginsNSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NSC is destroying value.
  • There is no outstanding debt for NSC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
NSC Yearly Shares OutstandingNSC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
NSC Yearly Total Debt VS Total AssetsNSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.2 Solvency

  • An Altman-Z score of 2.44 indicates that NSC is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a Altman-Z score value of 2.44, NSC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • 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.
  • The Debt to FCF ratio of NSC (8.14) is better than 71.43% of its industry peers.
  • NSC has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
  • NSC has a Debt to Equity ratio of 1.09. This is in the lower half of the industry: NSC underperforms 73.81% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF 8.14
Altman-Z 2.44
ROIC/WACC0.8
WACC10.35%
NSC Yearly LT Debt VS Equity VS FCFNSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.3 Liquidity

  • NSC has a Current Ratio of 0.86. This is a bad value and indicates that NSC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.86, NSC is not doing good in the industry: 73.81% 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 76.19% of its industry peers.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.78
NSC Yearly Current Assets VS Current LiabilitesNSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • NSC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.57%.
  • NSC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.21% yearly.
EPS 1Y (TTM)5.57%
EPS 3Y-3.48%
EPS 5Y6.21%
EPS Q2Q%5.92%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.65%

3.2 Future

  • NSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.05% yearly.
  • Based on estimates for the next years, NSC will show a small growth in Revenue. The Revenue will grow by 4.58% on average per year.
EPS Next Y-0.9%
EPS Next 2Y5.01%
EPS Next 3Y6.67%
EPS Next 5Y8.05%
Revenue Next Year2.2%
Revenue Next 2Y3.45%
Revenue Next 3Y3.72%
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.
NSC Yearly Revenue VS EstimatesNSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5B 10B 15B
NSC Yearly EPS VS EstimatesNSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5 10 15 20

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • NSC is valuated quite expensively with a Price/Earnings ratio of 25.12.
  • Based on the Price/Earnings ratio, NSC is valued a bit cheaper than 66.67% of the companies in the same industry.
  • NSC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.27.
  • NSC is valuated quite expensively with a Price/Forward Earnings ratio of 25.35.
  • Based on the Price/Forward Earnings ratio, NSC is valued a bit cheaper than 64.29% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.16. NSC is around the same levels.
Industry RankSector Rank
PE 25.12
Fwd PE 25.35
NSC Price Earnings VS Forward Price EarningsNSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of NSC indicates a somewhat cheap valuation: NSC is cheaper than 76.19% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 33.58
EV/EBITDA 15.19
NSC Per share dataNSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The decent profitability rating of NSC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.05
EPS Next 2Y5.01%
EPS Next 3Y6.67%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.72%, NSC has a reasonable but not impressive dividend return.
  • NSC's Dividend Yield is rather good when compared to the industry average which is at 0.68. NSC pays more dividend than 88.10% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.85, NSC has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.72%

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
NSC Yearly Dividends per shareNSC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • NSC pays out 41.16% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of NSC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.16%
EPS Next 2Y5.01%
EPS Next 3Y6.67%
NSC Yearly Income VS Free CF VS DividendNSC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B
NSC Dividend Payout.NSC Dividend Payout, showing the Payout Ratio.NSC Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

NORFOLK SOUTHERN CORP

NYSE:NSC (2/19/2026, 4:18:33 PM)

After market: 314.05 0 (0%)

314.05

-2.71 (-0.86%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-29
Earnings (Next)04-21
Inst Owners78.29%
Inst Owner Change-0.99%
Ins Owners0.02%
Ins Owner Change1.3%
Market Cap70.48B
Revenue(TTM)N/A
Net Income(TTM)2.96B
Analysts69.63
Price Target313.61 (-0.14%)
Short Float %3.96%
Short Ratio7.44
Dividend
Industry RankSector Rank
Dividend Yield 1.72%
Yearly Dividend5.4
Dividend Growth(5Y)8.41%
DP41.16%
Div Incr Years0
Div Non Decr Years23
Ex-Date02-06
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)-0.45%
PT rev (3m)-1.16%
EPS NQ rev (1m)-0.77%
EPS NQ rev (3m)-4.89%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.36%
Valuation
Industry RankSector Rank
PE 25.12
Fwd PE 25.35
P/S 5.76
P/FCF 33.58
P/OCF 16.59
P/B 4.65
P/tB 4.65
EV/EBITDA 15.19
EPS(TTM)12.5
EY3.98%
EPS(NY)12.39
Fwd EY3.94%
FCF(TTM)9.35
FCFY2.98%
OCF(TTM)18.93
OCFY6.03%
SpS54.5
BVpS67.47
TBVpS67.47
PEG (NY)N/A
PEG (5Y)4.05
Graham Number137.75
Profitability
Industry RankSector 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 RankSector 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 2.44
F-Score8
WACC10.35%
ROIC/WACC0.8
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)5.57%
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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.65%
Revenue Next Year2.2%
Revenue Next 2Y3.45%
Revenue Next 3Y3.72%
Revenue Next 5Y4.58%
EBIT growth 1Y-2.13%
EBIT growth 3Y0.98%
EBIT growth 5Y2.8%
EBIT Next Year35.99%
EBIT Next 3Y14.75%
EBIT Next 5Y10.62%
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 4 / 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 decline by -0.9% 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%.