NORFOLK SOUTHERN CORP (NSC)
US6558441084 - Common Stock
Overall NSC gets a fundamental rating of 5 out of 10. We evaluated NSC against 36 industry peers in the Ground Transportation industry. NSC has an average financial health and profitability rating. NSC has a correct valuation and a medium growth rate.
1. Profitability
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.
NSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NSC has a Return On Assets of 4.38%. This is comparable to the rest of the industry: NSC outperforms 52.78% of its industry peers.
With a decent Return On Equity value of 14.28%, NSC is doing good in the industry, outperforming 63.89% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.03%, NSC is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NSC is in line with the industry average of 7.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 14.28% | ||
| ROIC | 8.03% |
ROA(3y)6.86%
ROA(5y)6.61%
ROE(3y)20.65%
ROE(5y)18.69%
ROIC(3y)9.42%
ROIC(5y)8.92%
1.3 Margins
NSC has a better Profit Margin (15.01%) than 83.33% of its industry peers.
NSC's Profit Margin has declined in the last couple of years.
The Operating Margin of NSC (32.63%) is better than 88.89% 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 Gross Margin (46.50%) which is in line with its industry peers.
In the last couple of years the Gross Margin of NSC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.63% | ||
| PM (TTM) | 15.01% | ||
| GM | 46.5% |
OM growth 3Y-1.93%
OM growth 5Y-1.14%
PM growth 3Y-9.93%
PM growth 5Y-8.36%
GM growth 3Y-2.03%
GM growth 5Y-0.36%
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for NSC has been reduced compared to 5 years ago.
The debt/assets ratio for NSC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.11 indicates that NSC is not a great score, but indicates only limited risk for bankruptcy at the moment.
NSC has a Altman-Z score (2.11) which is in line with its industry peers.
The Debt to FCF ratio of NSC is 20.70, which is on the high side as it means it would take NSC, 20.70 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 20.70, NSC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.34 is on the high side and indicates that NSC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.34, NSC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 20.7 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.96
WACC8.36%
2.3 Liquidity
NSC has a Current Ratio of 1.24. This is a normal value and indicates that NSC is financially healthy and should not expect problems in meeting its short term obligations.
NSC has a better Current ratio (1.24) than 61.11% of its industry peers.
A Quick Ratio of 1.14 indicates that NSC should not have too much problems paying its short term obligations.
NSC has a Quick ratio (1.14) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for NSC have decreased strongly by -15.47% in the last year.
The Earnings Per Share has been growing slightly by 4.30% on average over the past years.
The Revenue has decreased by -4.62% in the past year.
NSC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.19% yearly.
EPS 1Y (TTM)-15.47%
EPS 3Y8.3%
EPS 5Y4.3%
EPS growth Q2Q-17.25%
Revenue 1Y (TTM)-4.62%
Revenue growth 3Y7.49%
Revenue growth 5Y1.19%
Revenue growth Q2Q-5.07%
3.2 Future
The Earnings Per Share is expected to grow by 8.76% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.64% on average over the next years.
EPS Next Y3.01%
EPS Next 2Y8.86%
EPS Next 3Y10.68%
EPS Next 5Y8.76%
Revenue Next Year3.05%
Revenue Next 2Y4.05%
Revenue Next 3Y4%
Revenue Next 5Y4.64%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.45, NSC is valued on the expensive side.
NSC's Price/Earnings ratio is a bit cheaper when compared to the industry. NSC is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.80, NSC is valued at the same level.
With a Price/Forward Earnings ratio of 19.85, NSC is valued on the expensive side.
NSC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NSC is cheaper than 61.11% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, NSC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 19.85 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NSC.
Based on the Price/Free Cash Flow ratio, NSC is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.39 | ||
| EV/EBITDA | 13.27 |
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 NSC may justify a higher PE ratio.
PEG (NY)6.8
PEG (5Y)4.76
EPS Next 2Y8.86%
EPS Next 3Y10.68%
5. Dividend
5.1 Amount
NSC has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
NSC's Dividend Yield is rather good when compared to the industry average which is at 1.66. NSC pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NSC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
The dividend of NSC is nicely growing with an annual growth rate of 12.05%!
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)12.05%
Div Incr Years7
Div Non Decr Years19
5.3 Sustainability
67.12% of the earnings are spent on dividend by NSC. This is not a sustainable payout ratio.
The dividend of NSC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP67.12%
EPS Next 2Y8.86%
EPS Next 3Y10.68%
NORFOLK SOUTHERN CORP
NYSE:NSC (4/18/2024, 7:11:09 PM)
After market: 242.04 +1.77 (+0.74%)240.27
+0.93 (+0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap54.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 19.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.8
PEG (5Y)4.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 14.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.63% | ||
| PM (TTM) | 15.01% | ||
| GM | 46.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-15.47%
EPS 3Y8.3%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.62%
Revenue growth 3Y7.49%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y