NORFOLK SOUTHERN CORP (NSC) Stock Fundamental Analysis
USA - NYSE:NSC - US6558441084 - Common Stock
300.66 USD
+1.98 (+0.66%)
Overall NSC gets a fundamental rating of 5 out of 10. We evaluated NSC against 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. NSC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NSC had positive earnings in the past year.
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 has a Return On Assets of 7.58%. This is in the better half of the industry: NSC outperforms 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 22.63%, NSC belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
NSC has a better Return On Invested Capital (9.16%) than 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 7.92%.
The 3 year average ROIC (9.15%) for NSC is below the current ROIC(9.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 22.63% | ||
| ROIC | 9.16% |
ROA(3y)6.26%
ROA(5y)6.38%
ROE(3y)19.41%
ROE(5y)18.77%
ROIC(3y)9.15%
ROIC(5y)8.93%
1.3 Margins
Looking at the Profit Margin, with a value of 27.48%, NSC belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
NSC's Profit Margin has declined in the last couple of years.
NSC has a Operating Margin of 38.68%. This is amongst the best in the industry. NSC outperforms 97.62% of its industry peers.
NSC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 51.67%, NSC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
NSC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.68% | ||
| PM (TTM) | 27.48% | ||
| GM | 51.67% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
NSC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NSC has been reduced compared to 5 years ago.
Compared to 1 year ago, NSC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.37 indicates that NSC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NSC (2.37) is comparable to the rest of the industry.
NSC has a debt to FCF ratio of 8.58. This is a slightly negative value and a sign of low solvency as NSC would need 8.58 years to pay back of all of its debts.
The Debt to FCF ratio of NSC (8.58) is better than 71.43% of its industry peers.
A Debt/Equity ratio of 1.11 is on the high side and indicates that NSC has dependencies on debt financing.
NSC has a worse Debt to Equity ratio (1.11) than 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 8.58 | ||
| Altman-Z | 2.37 |
ROIC/WACC1
WACC9.14%
2.3 Liquidity
A Current Ratio of 0.79 indicates that NSC may have some problems paying its short term obligations.
The Current ratio of NSC (0.79) is worse than 73.81% of its industry peers.
A Quick Ratio of 0.71 indicates that NSC may have some problems paying its short term obligations.
NSC has a worse Quick ratio (0.71) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.24% over the past year.
The Earnings Per Share has been growing slightly by 2.93% on average over the past years.
Looking at the last year, NSC shows a small growth in Revenue. The Revenue has grown by 0.71% 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)11.24%
EPS 3Y-0.78%
EPS 5Y2.93%
EPS Q2Q%7.52%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y2.85%
Revenue growth 5Y1.42%
Sales Q2Q%2.17%
3.2 Future
The Earnings Per Share is expected to grow by 9.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.69% on average over the next years.
EPS Next Y7.25%
EPS Next 2Y9.35%
EPS Next 3Y9.66%
EPS Next 5Y9.22%
Revenue Next Year1.64%
Revenue Next 2Y3.02%
Revenue Next 3Y3.47%
Revenue Next 5Y3.69%
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
Based on the Price/Earnings ratio of 24.50, the valuation of NSC can be described as rather expensive.
Based on the Price/Earnings ratio, NSC is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.79. NSC is around the same levels.
A Price/Forward Earnings ratio of 21.24 indicates a rather expensive valuation of NSC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NSC is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.21, NSC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.5 | ||
| Fwd PE | 21.24 |
4.2 Price Multiples
NSC's Enterprise Value to EBITDA is on the same level as the industry average.
NSC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NSC is cheaper than 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.33 | ||
| EV/EBITDA | 13.65 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.38
PEG (5Y)8.37
EPS Next 2Y9.35%
EPS Next 3Y9.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, NSC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.63, NSC pays a better dividend. On top of this NSC pays more dividend than 83.33% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, NSC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.41%
Div Incr Years0
Div Non Decr Years23
5.3 Sustainability
36.45% of the earnings are spent on dividend by NSC. This is a low number and sustainable payout ratio.
NSC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP36.45%
EPS Next 2Y9.35%
EPS Next 3Y9.66%
NYSE:NSC (10/2/2025, 9:56:06 AM)
300.66
+1.98 (+0.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners80.6%
Inst Owner Change-4.81%
Ins Owners0.02%
Ins Owner Change0.68%
Market Cap67.45B
Analysts70
Price Target304.83 (1.39%)
Short Float %1.65%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend5.4
Dividend Growth(5Y)8.41%
DP36.45%
Div Incr Years0
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.19%
Min EPS beat(2)-1.39%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)0.76%
Min EPS beat(4)-1.39%
Max EPS beat(4)3.5%
EPS beat(8)3
Avg EPS beat(8)-0.08%
EPS beat(12)5
Avg EPS beat(12)0.7%
EPS beat(16)7
Avg EPS beat(16)0.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)-0.43%
Revenue beat(4)0
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-2.12%
Max Revenue beat(4)-0.43%
Revenue beat(8)0
Avg Revenue beat(8)-1.24%
Revenue beat(12)2
Avg Revenue beat(12)-0.98%
Revenue beat(16)6
Avg Revenue beat(16)-0.28%
PT rev (1m)1.55%
PT rev (3m)14.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.5 | ||
| Fwd PE | 21.24 | ||
| P/S | 5.54 | ||
| P/FCF | 33.33 | ||
| P/OCF | 16.04 | ||
| P/B | 4.56 | ||
| P/tB | 4.56 | ||
| EV/EBITDA | 13.65 |
EPS(TTM)12.27
EY4.08%
EPS(NY)14.16
Fwd EY4.71%
FCF(TTM)9.02
FCFY3%
OCF(TTM)18.74
OCFY6.23%
SpS54.28
BVpS65.91
TBVpS65.91
PEG (NY)3.38
PEG (5Y)8.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 22.63% | ||
| ROCE | 11.64% | ||
| ROIC | 9.16% | ||
| ROICexc | 9.47% | ||
| ROICexgc | 9.47% | ||
| OM | 38.68% | ||
| PM (TTM) | 27.48% | ||
| GM | 51.67% | ||
| FCFM | 16.62% |
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%
ROICexcg growth 3Y-2.05%
ROICexcg 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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 8.58 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 158.78% | ||
| Cap/Sales | 17.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.1% | ||
| Profit Quality | 60.47% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 2.37 |
F-Score8
WACC9.14%
ROIC/WACC1
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)11.24%
EPS 3Y-0.78%
EPS 5Y2.93%
EPS Q2Q%7.52%
EPS Next Y7.25%
EPS Next 2Y9.35%
EPS Next 3Y9.66%
EPS Next 5Y9.22%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y2.85%
Revenue growth 5Y1.42%
Sales Q2Q%2.17%
Revenue Next Year1.64%
Revenue Next 2Y3.02%
Revenue Next 3Y3.47%
Revenue Next 5Y3.69%
EBIT growth 1Y22.55%
EBIT growth 3Y0.98%
EBIT growth 5Y2.8%
EBIT Next Year40.01%
EBIT Next 3Y16.85%
EBIT Next 5Y11.1%
FCF growth 1Y1.3%
FCF growth 3Y-78.42%
FCF growth 5Y-56.86%
OCF growth 1Y3.62%
OCF growth 3Y-1.62%
OCF growth 5Y0.81%