NORFOLK SOUTHERN CORP (NSC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:NSC • US6558441084
305.72 USD
-0.76 (-0.25%)
At close: Feb 9, 2026
305.72 USD
0 (0%)
After Hours: 2/9/2026, 8:19:58 PM
Taking everything into account, NSC scores 4 out of 10 in our fundamental rating. NSC was compared to 42 industry peers in the Ground Transportation industry. While NSC has a great profitability rating, there are quite some concerns on its financial health. NSC is valued correctly, but it does not seem to be growing. NSC also has an excellent dividend rating.
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 4 of the past 5 years.
- NSC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- NSC has a Return On Assets of 6.64%. This is in the better half of the industry: NSC outperforms 76.19% of its industry peers.
- NSC has a better Return On Equity (19.54%) than 83.33% of its industry peers.
- NSC has a Return On Invested Capital of 8.30%. This is in the better half of the industry: NSC outperforms 76.19% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NSC is above the industry average of 7.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 19.54% | ||
| ROIC | 8.3% |
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 24.19%, NSC belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
- NSC's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 35.39%, NSC belongs to the best 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.
- NSC's Gross Margin of 50.03% is fine compared to the rest of the industry. NSC outperforms 61.90% of its industry peers.
- NSC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.39% | ||
| PM (TTM) | 24.19% | ||
| GM | 50.03% |
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 below the Cost of Capital (WACC), which means it is destroying value.
- There is no outstanding debt for NSC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- NSC has an Altman-Z score of 2.39. 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.
- Looking at the Altman-Z score, with a value of 2.39, NSC is in line with its industry, outperforming 54.76% of the companies in the same industry.
- NSC has a debt to FCF ratio of 8.14. This is a slightly negative value and a sign of low solvency as NSC would need 8.14 years to pay back of all of its debts.
- NSC has a better Debt to FCF ratio (8.14) than 71.43% of its industry peers.
- A Debt/Equity ratio of 1.09 is on the high side and indicates that NSC has dependencies on debt financing.
- NSC has a Debt to Equity ratio of 1.09. This is in the lower half of the industry: NSC underperforms 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 8.14 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.85
WACC9.79%
2.3 Liquidity
- NSC has a Current Ratio of 0.86. 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 (0.86) than 71.43% of its industry peers.
- A Quick Ratio of 0.78 indicates that NSC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.78, NSC is doing worse than 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| 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.
EPS 1Y (TTM)5.57%
EPS 3Y-3.48%
EPS 5Y6.21%
EPS Q2Q%5.92%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.65%
3.2 Future
- NSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.57% yearly.
- NSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.62% yearly.
EPS Next Y-0.9%
EPS Next 2Y5.01%
EPS Next 3Y6.67%
EPS Next 5Y8.57%
Revenue Next Year2.2%
Revenue Next 2Y3.45%
Revenue Next 3Y3.72%
Revenue Next 5Y4.62%
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.
4. Valuation
4.1 Price/Earnings Ratio
- NSC is valuated rather expensively with a Price/Earnings ratio of 24.46.
- Compared to the rest of the industry, the Price/Earnings ratio of NSC indicates a somewhat cheap valuation: NSC is cheaper than 73.81% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.06, NSC is valued at the same level.
- With a Price/Forward Earnings ratio of 24.68, NSC is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NSC indicates a somewhat cheap valuation: NSC is cheaper than 66.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.86, NSC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.46 | ||
| Fwd PE | 24.68 |
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.
- Based on the Price/Free Cash Flow ratio, NSC is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.68 | ||
| EV/EBITDA | 14.79 |
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)3.94
EPS Next 2Y5.01%
EPS Next 3Y6.67%
5. Dividend
5.1 Amount
- NSC has a Yearly Dividend Yield of 1.76%.
- NSC's Dividend Yield is rather good when compared to the industry average which is at 0.68. NSC pays more dividend than 88.10% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, NSC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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
- 41.16% 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.
DP41.16%
EPS Next 2Y5.01%
EPS Next 3Y6.67%
305.72
-0.76 (-0.25%)
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 Change-2.64%
Ins Owners0.02%
Ins Owner Change1.3%
Market Cap68.60B
Revenue(TTM)N/A
Net Income(TTM)2.96B
Analysts70.37
Price Target313.61 (2.58%)
Short Float %4.13%
Short Ratio7.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend5.4
Dividend Growth(5Y)8.41%
DP41.16%
Div Incr Years0
Div Non Decr Years23
Ex-Date02-06 2026-02-06 (1.35)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.55%
Min EPS beat(2)-1.39%
Max EPS beat(2)2.49%
EPS beat(4)2
Avg EPS beat(4)0.51%
Min EPS beat(4)-1.39%
Max EPS beat(4)2.49%
EPS beat(8)4
Avg EPS beat(8)0.52%
EPS beat(12)5
Avg EPS beat(12)-0.06%
EPS beat(16)7
Avg EPS beat(16)0.66%
Revenue beat(2)0
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)-1.18%
Revenue beat(4)0
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)-0.43%
Revenue beat(8)0
Avg Revenue beat(8)-1.37%
Revenue beat(12)1
Avg Revenue beat(12)-1.29%
Revenue beat(16)5
Avg Revenue beat(16)-0.53%
PT rev (1m)-0.45%
PT rev (3m)-1.16%
EPS NQ rev (1m)-3.16%
EPS NQ rev (3m)-4.89%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.46 | ||
| Fwd PE | 24.68 | ||
| P/S | 5.61 | ||
| P/FCF | 32.68 | ||
| P/OCF | 16.15 | ||
| P/B | 4.53 | ||
| P/tB | 4.53 | ||
| EV/EBITDA | 14.79 |
EPS(TTM)12.5
EY4.09%
EPS(NY)12.39
Fwd EY4.05%
FCF(TTM)9.35
FCFY3.06%
OCF(TTM)18.94
OCFY6.19%
SpS54.5
BVpS67.48
TBVpS67.48
PEG (NY)N/A
PEG (5Y)3.94
Graham Number137.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 19.54% | ||
| ROCE | 10.54% | ||
| ROIC | 8.3% | ||
| ROICexc | 8.6% | ||
| ROICexgc | 8.6% | ||
| OM | 35.39% | ||
| PM (TTM) | 24.19% | ||
| GM | 50.03% | ||
| FCFM | 17.16% |
ROA(3y)6.26%
ROA(5y)6.38%
ROE(3y)19.41%
ROE(5y)18.77%
ROIC(3y)9.15%
ROIC(5y)8.93%
ROICexc(3y)9.43%
ROICexc(5y)9.19%
ROICexgc(3y)9.43%
ROICexgc(5y)9.19%
ROCE(3y)11.62%
ROCE(5y)11.33%
ROICexgc growth 3Y-2.05%
ROICexgc 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 Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 8.14 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 155.57% | ||
| Cap/Sales | 17.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.41% | ||
| Profit Quality | 70.94% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.39 |
F-Score8
WACC9.79%
ROIC/WACC0.85
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)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 5Y8.57%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.65%
Revenue Next Year2.2%
Revenue Next 2Y3.45%
Revenue Next 3Y3.72%
Revenue Next 5Y4.62%
EBIT growth 1Y-2.13%
EBIT growth 3Y0.98%
EBIT growth 5Y2.8%
EBIT Next Year35.99%
EBIT Next 3Y14.75%
EBIT Next 5Y10.97%
FCF growth 1Y83.8%
FCF growth 3Y-78.42%
FCF growth 5Y-56.86%
OCF growth 1Y28.6%
OCF growth 3Y-1.62%
OCF growth 5Y0.81%
NORFOLK SOUTHERN CORP / NSC FAQ
What is the ChartMill fundamental rating of NORFOLK SOUTHERN CORP (NSC) stock?
ChartMill assigns a fundamental rating of 4 / 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 41.16%.