NORFOLK SOUTHERN CORP (NSC) Fundamental Analysis & Valuation
NYSE:NSC • US6558441084
Current stock price
295.3 USD
+1.2 (+0.41%)
At close:
294.57 USD
-0.73 (-0.25%)
After Hours:
This NSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. NSC Profitability Analysis
1.1 Basic Checks
- In the past year NSC was profitable.
- NSC had a positive operating cash flow in the past year.
- In the past 5 years NSC has always been profitable.
- In the past 5 years NSC always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 6.34%, NSC is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- With an excellent Return On Equity value of 18.46%, NSC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- NSC has a Return On Invested Capital of 7.97%. This is in the better half of the industry: NSC outperforms 71.43% of its industry peers.
- NSC had an Average Return On Invested Capital over the past 3 years of 8.31%. This is in line with the industry average of 7.15%.
| 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
- NSC has a Profit Margin of 23.56%. This is amongst the best in the industry. NSC outperforms 88.10% of its industry peers.
- NSC's Profit Margin has improved in the last couple of years.
- NSC's Operating Margin of 34.52% 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 has a better Gross Margin (49.40%) than 61.90% of its industry peers.
- NSC'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. NSC Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NSC is destroying value.
- NSC has less 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 2.31 indicates that NSC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- NSC has a Altman-Z score (2.31) which is comparable to the rest of the industry.
- NSC has a debt to FCF ratio of 7.92. This is a slightly negative value and a sign of low solvency as NSC would need 7.92 years to pay back of all of its debts.
- NSC has a better Debt to FCF ratio (7.92) than 66.67% of its industry peers.
- A Debt/Equity ratio of 1.06 is on the high side and indicates that NSC has dependencies on debt financing.
- NSC has a Debt to Equity ratio of 1.06. This is in the lower half of the industry: NSC underperforms 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 7.92 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.8
WACC9.99%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that NSC may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.85, NSC is doing worse than 73.81% of the companies in the same industry.
- A Quick Ratio of 0.78 indicates that NSC may have some problems paying its short term obligations.
- NSC's Quick ratio of 0.78 is on the low side compared to the rest of the industry. NSC is outperformed by 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.78 |
3. NSC Growth Analysis
3.1 Past
- NSC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.57%.
- The Earnings Per Share has been growing slightly by 6.21% on average over the past years.
- The Revenue has been growing slightly by 0.47% in the past year.
- Measured over the past years, NSC shows a small growth in Revenue. The Revenue has been growing by 4.47% on average per year.
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.
- 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-2.19%
EPS Next 2Y4.53%
EPS Next 3Y6.19%
EPS Next 5Y8.05%
Revenue Next Year2.2%
Revenue Next 2Y3.52%
Revenue Next 3Y3.82%
Revenue Next 5Y4.58%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. NSC Valuation Analysis
4.1 Price/Earnings Ratio
- NSC is valuated rather expensively with a Price/Earnings ratio of 23.62.
- Based on the Price/Earnings ratio, NSC is valued a bit cheaper than the industry average as 73.81% 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 26.91, which is the current average of the S&P500 Index.
- NSC is valuated rather expensively with a Price/Forward Earnings ratio of 24.15.
- Based on the Price/Forward Earnings ratio, NSC is valued a bit cheaper than 69.05% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 23.68. NSC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 24.15 |
4.2 Price Multiples
- NSC's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, NSC is valued a bit cheaper than the industry average as 69.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.74 | ||
| EV/EBITDA | 14.63 |
4.3 Compensation for Growth
- NSC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.81
EPS Next 2Y4.53%
EPS Next 3Y6.19%
5. NSC Dividend Analysis
5.1 Amount
- NSC has a Yearly Dividend Yield of 1.91%.
- NSC's Dividend Yield is rather good when compared to the industry average which is at 0.72. NSC pays more dividend than 88.10% of the companies in the same industry.
- NSC's Dividend Yield is comparable with the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
- The dividend of NSC is nicely growing with an annual growth rate of 7.45%!
- NSC has been paying a dividend for at least 10 years, so it has 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)7.45%
Div Incr Years0
Div Non Decr Years24
5.3 Sustainability
- NSC pays out 42.33% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of NSC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP42.33%
EPS Next 2Y4.53%
EPS Next 3Y6.19%
NSC Fundamentals: All Metrics, Ratios and Statistics
295.3
+1.2 (+0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-24 2026-04-24/bmo
Inst Owners78.12%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change1.16%
Market Cap66.32B
Revenue(TTM)12.18B
Net Income(TTM)2.87B
Analysts69.63
Price Target320.41 (8.5%)
Short Float %3.89%
Short Ratio6.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend5.39
Dividend Growth(5Y)7.45%
DP42.33%
Div Incr Years0
Div Non Decr Years24
Ex-Date02-06 2026-02-06 (1.35)
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)1.76%
PT rev (3m)1.71%
EPS NQ rev (1m)-0.77%
EPS NQ rev (3m)-9.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.32%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-2.01%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 24.15 | ||
| P/S | 5.44 | ||
| P/FCF | 30.74 | ||
| P/OCF | 15.21 | ||
| P/B | 4.27 | ||
| P/tB | 4.27 | ||
| EV/EBITDA | 14.63 |
EPS(TTM)12.5
EY4.23%
EPS(NY)12.23
Fwd EY4.14%
FCF(TTM)9.61
FCFY3.25%
OCF(TTM)19.42
OCFY6.58%
SpS54.24
BVpS69.23
TBVpS69.23
PEG (NY)N/A
PEG (5Y)3.81
Graham Number139.54
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 | 2.31 |
F-Score6
WACC9.99%
ROIC/WACC0.8
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-2.19%
EPS Next 2Y4.53%
EPS Next 3Y6.19%
EPS Next 5Y8.05%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y-1.5%
Revenue growth 5Y4.47%
Sales Q2Q%-1.65%
Revenue Next Year2.2%
Revenue Next 2Y3.52%
Revenue Next 3Y3.82%
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 / NSC Fundamental Analysis 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.
How profitable is NORFOLK SOUTHERN CORP (NSC) stock?
NORFOLK SOUTHERN CORP (NSC) has a profitability rating of 7 / 10.
What is the valuation of NORFOLK SOUTHERN CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NORFOLK SOUTHERN CORP (NSC) is 23.62 and the Price/Book (PB) ratio is 4.27.
Can you provide the financial health for NSC stock?
The financial health rating of NORFOLK SOUTHERN CORP (NSC) is 3 / 10.