NORFOLK SOUTHERN CORP (NSC) Stock Fundamental Analysis
NYSE:NSC • US6558441084
316.98 USD
-0.49 (-0.15%)
Last: Mar 3, 2026, 03:03 PM
Taking everything into account, NSC scores 5 out of 10 in our fundamental rating. NSC was compared to 42 industry peers in the Ground Transportation industry. NSC has an excellent profitability rating, but there are concerns on its financial health. NSC has a decent growth rate and is not valued too expensively. Finally NSC also has an excellent dividend rating.
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.
- 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
- 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.
- 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.
- The Average Return On Invested Capital over the past 3 years for NSC is in line with the industry average of 7.32%.
| 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
- The Profit Margin of NSC (23.56%) is better than 88.10% of its industry peers.
- NSC's Profit Margin has improved in the last couple of years.
- NSC has a Operating Margin of 34.52%. 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.
- With a decent Gross Margin value of 49.40%, NSC is doing good in the industry, outperforming 61.90% of the companies in the same industry.
- 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. 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.
- NSC has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, NSC has an improved debt to assets ratio.
2.2 Solvency
- NSC has an Altman-Z score of 2.41. 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's Altman-Z score of 2.41 is in line compared 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.
- Looking at the Debt to Equity ratio, with a value of 1.06, NSC is doing worse than 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 7.92 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.79
WACC10.09%
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.
- NSC has a worse Current ratio (0.85) than 73.81% of its industry peers.
- NSC has a Quick 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.
- NSC has a worse Quick ratio (0.78) than 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.57% over the past year.
- 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.
- The Revenue is expected to grow by 4.58% on average over the next years.
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
- 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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 25.36 indicates a quite expensive valuation of NSC.
- Compared to the rest of the industry, the Price/Earnings ratio of NSC indicates a somewhat cheap valuation: NSC is cheaper than 71.43% of the companies listed in the same industry.
- NSC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 25.59, 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 28.11, NSC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.36 | ||
| Fwd PE | 25.59 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.98 | ||
| EV/EBITDA | 15.51 |
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)4.09
EPS Next 2Y5.01%
EPS Next 3Y6.67%
5. Dividend
5.1 Amount
- NSC has a Yearly Dividend Yield of 1.73%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.66, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
- On average, the dividend of NSC grows each year by 7.45%, 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)7.45%
Div Incr Years0
Div Non Decr Years23
5.3 Sustainability
- 42.33% of the earnings are spent on dividend by NSC. 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%
NYSE:NSC (3/3/2026, 3:03:42 PM)
316.98
-0.49 (-0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-21 2026-04-21/bmo
Inst Owners78.29%
Inst Owner Change1.92%
Ins Owners0.02%
Ins Owner Change1.3%
Market Cap71.14B
Revenue(TTM)12.18B
Net Income(TTM)2.87B
Analysts69.63
Price Target314.85 (-0.67%)
Short Float %4.65%
Short Ratio8.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend5.39
Dividend Growth(5Y)7.45%
DP42.33%
Div Incr Years0
Div Non Decr Years23
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)-0.75%
PT rev (3m)-0.98%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.36 | ||
| Fwd PE | 25.59 | ||
| P/S | 5.84 | ||
| P/FCF | 32.98 | ||
| P/OCF | 16.31 | ||
| P/B | 4.58 | ||
| P/tB | 4.58 | ||
| EV/EBITDA | 15.51 |
EPS(TTM)12.5
EY3.94%
EPS(NY)12.39
Fwd EY3.91%
FCF(TTM)9.61
FCFY3.03%
OCF(TTM)19.43
OCFY6.13%
SpS54.27
BVpS69.28
TBVpS69.28
PEG (NY)N/A
PEG (5Y)4.09
Graham Number139.59
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 | 2.41 |
F-Score6
WACC10.09%
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 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 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%.