NORFOLK SOUTHERN CORP (NSC) Stock Fundamental Analysis

NYSE:NSC • US6558441084

311.36 USD
-4.73 (-1.5%)
Last: Feb 25, 2026, 03:53 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall NSC gets a fundamental rating of 5 out of 10. We evaluated NSC against 42 industry peers in the Ground Transportation industry. NSC scores excellent on profitability, but there are concerns on its financial health. NSC is not valued too expensively and it also shows a decent growth rate. Finally NSC also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

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.
  • NSC had positive earnings in each of the past 5 years.
  • In the past 5 years NSC always reported a positive cash flow from operatings.
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 2025 1B 2B 3B 4B 5B

1.2 Ratios

  • NSC's Return On Assets of 6.34% is fine compared to the rest of the industry. NSC outperforms 71.43% of its industry peers.
  • NSC's Return On Equity of 18.46% is amongst the best of the industry. NSC outperforms 83.33% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.97%, NSC is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
  • 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 7.34%.
Industry RankSector 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%
NSC Yearly ROA, ROE, ROICNSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • NSC's Profit Margin of 23.56% is amongst the best of the industry. NSC outperforms 88.10% of its industry peers.
  • NSC's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 34.52%, NSC belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
  • In the last couple of years the Operating Margin of NSC has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 49.40%, NSC is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
  • In the last couple of years the Gross Margin of NSC has remained more or less at the same level.
Industry RankSector 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%
NSC Yearly Profit, Operating, Gross MarginsNSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

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.
NSC Yearly Shares OutstandingNSC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 10B 20B 30B 40B

2.2 Solvency

  • NSC has an Altman-Z score of 2.40. 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 of 2.40. This is comparable to the rest of the industry: NSC outperforms 47.62% of its industry peers.
  • 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's Debt to FCF ratio of 7.92 is fine compared to the rest of the industry. NSC outperforms 71.43% of its industry peers.
  • NSC has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.06, NSC is not doing good in the industry: 73.81% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 7.92
Altman-Z 2.4
ROIC/WACC0.79
WACC10.11%
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 2025 5B 10B 15B

2.3 Liquidity

  • NSC has a Current Ratio of 0.85. This is a bad value and indicates that NSC is not financially healthy enough and could expect problems in meeting 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.
  • The Quick ratio of NSC (0.78) is worse than 73.81% of its industry peers.
Industry RankSector Rank
Current Ratio 0.85
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 2025 1B 2B 3B

More info and screens

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

4

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%.
  • Measured over the past 5 years, NSC shows a small growth in Earnings Per Share. The EPS has been growing by 6.21% on average per year.
  • NSC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.47%.
  • The Revenue has been growing slightly by 4.47% on average over the past years.
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.
  • NSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.58% yearly.
EPS Next Y-0.9%
EPS Next 2Y5.01%
EPS Next 3Y6.67%
EPS Next 5Y8.05%
Revenue Next Year1.97%
Revenue Next 2Y3.37%
Revenue Next 3Y3.67%
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.
  • 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.
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

More info and screens

Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • NSC is valuated rather expensively with a Price/Earnings ratio of 24.91.
  • Based on the Price/Earnings ratio, NSC is valued a bit cheaper than 73.81% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.98. NSC is around the same levels.
  • With a Price/Forward Earnings ratio of 25.13, NSC can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, NSC is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.01, NSC is valued at the same level.
Industry RankSector Rank
PE 24.91
Fwd PE 25.13
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

  • NSC's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, NSC is valued a bit cheaper than 76.19% of the companies in the same industry.
Industry RankSector Rank
P/FCF 32.39
EV/EBITDA 15.45
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)4.01
EPS Next 2Y5.01%
EPS Next 3Y6.67%

More info and screens

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

7

5. Dividend

5.1 Amount

  • NSC has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.67, NSC pays a better dividend. On top of this NSC pays more dividend than 88.10% of the companies listed in the same industry.
  • NSC's Dividend Yield is comparable with the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 1.72%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.45%
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 42.33% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • 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.
DP42.33%
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 2025 1B 2B 3B 4B 5B
NSC Dividend Payout.NSC Dividend Payout, showing the Payout Ratio.NSC Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

NORFOLK SOUTHERN CORP

NYSE:NSC (2/25/2026, 3:53:05 PM)

311.36

-4.73 (-1.5%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-29
Earnings (Next)04-21
Inst Owners78.29%
Inst Owner Change1.91%
Ins Owners0.02%
Ins Owner Change1.3%
Market Cap69.88B
Revenue(TTM)12.18B
Net Income(TTM)2.87B
Analysts69.63
Price Target313.61 (0.72%)
Short Float %3.96%
Short Ratio7.44
Dividend
Industry RankSector Rank
Dividend Yield 1.72%
Yearly Dividend5.39
Dividend Growth(5Y)7.45%
DP42.33%
Div Incr Years0
Div Non Decr Years23
Ex-Date02-06
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)-1.14%
PT rev (3m)-1.37%
EPS NQ rev (1m)-6.38%
EPS NQ rev (3m)-10.46%
EPS NY rev (1m)-3.45%
EPS NY rev (3m)-6.9%
Revenue NQ rev (1m)-1.27%
Revenue NQ rev (3m)-2.39%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-1.6%
Valuation
Industry RankSector Rank
PE 24.91
Fwd PE 25.13
P/S 5.74
P/FCF 32.39
P/OCF 16.02
P/B 4.49
P/tB 4.49
EV/EBITDA 15.45
EPS(TTM)12.5
EY4.01%
EPS(NY)12.39
Fwd EY3.98%
FCF(TTM)9.61
FCFY3.09%
OCF(TTM)19.43
OCFY6.24%
SpS54.27
BVpS69.28
TBVpS69.28
PEG (NY)N/A
PEG (5Y)4.01
Graham Number139.59
Profitability
Industry RankSector 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 RankSector 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 2.4
F-Score6
WACC10.11%
ROIC/WACC0.79
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-0.9%
EPS Next 2Y5.01%
EPS Next 3Y6.67%
EPS Next 5Y8.05%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y-1.5%
Revenue growth 5Y4.47%
Sales Q2Q%-1.65%
Revenue Next Year1.97%
Revenue Next 2Y3.37%
Revenue Next 3Y3.67%
Revenue Next 5Y4.58%
EBIT growth 1Y-8.19%
EBIT growth 3Y-4.38%
EBIT growth 5Y4.42%
EBIT Next Year38.12%
EBIT Next 3Y16.54%
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 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 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 7 / 10 and the dividend payout ratio is 42.33%.