NORFOLK SOUTHERN CORP (NSC) Fundamental Analysis & Valuation

NYSE:NSC • US6558441084

Current stock price

288 USD
+1 (+0.35%)
At close:
288 USD
0 (0%)
After Hours:

This NSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. NSC Profitability Analysis

1.1 Basic Checks

  • NSC had positive earnings in the past year.
  • NSC had a positive operating cash flow in the past year.
  • NSC had positive earnings in each of the past 5 years.
  • NSC had a positive operating cash flow in each of the past 5 years.
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

  • The Return On Assets of NSC (6.34%) is better than 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.
  • The Return On Invested Capital of NSC (7.97%) is better than 71.43% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for NSC is in line with the industry average of 7.15%.
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

  • With an excellent Profit Margin value of 23.56%, NSC belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
  • NSC's Profit Margin has improved in the last couple of years.
  • NSC has a better Operating Margin (34.52%) than 92.86% of its industry peers.
  • NSC's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of NSC (49.40%) is better than 61.90% of its industry peers.
  • 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

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3

2. NSC Health Analysis

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.
  • Compared to 1 year ago, NSC has less shares outstanding
  • The number of shares outstanding for NSC has been reduced compared to 5 years ago.
  • NSC has a better debt/assets ratio than last year.
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

  • An Altman-Z score of 2.28 indicates that NSC is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a Altman-Z score value of 2.28, NSC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • The Debt to FCF ratio of NSC is 7.92, which is on the high side as it means it would take NSC, 7.92 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 7.92, NSC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • NSC has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
  • NSC's Debt to Equity ratio of 1.06 is on the low side compared to the rest of the industry. NSC is outperformed by 73.81% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 7.92
Altman-Z 2.28
ROIC/WACC0.8
WACC10.01%
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

  • A Current Ratio of 0.85 indicates that NSC may have some problems paying its short term obligations.
  • NSC has a Current ratio of 0.85. This is in the lower half of the industry: NSC underperforms 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.
  • Looking at the Quick ratio, with a value of 0.78, NSC is doing worse than 76.19% of the companies in the same industry.
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

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

4

3. NSC Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 5.57% over the past year.
  • The Earnings Per Share has been growing slightly by 6.21% on average over the past years.
  • Looking at the last year, NSC shows a small growth in Revenue. The Revenue has grown by 0.47% in the last 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 Year1.99%
Revenue Next 2Y3.38%
Revenue Next 3Y3.69%
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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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

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4

4. NSC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 23.04, which indicates a rather expensive current valuation of NSC.
  • Based on the Price/Earnings ratio, NSC is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of NSC to the average of the S&P500 Index (25.60), we can say NSC is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 23.56, the valuation of NSC can be described as rather expensive.
  • NSC's Price/Forward 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/Forward Earnings ratio of 22.84, NSC is valued at the same level.
Industry RankSector Rank
PE 23.04
Fwd PE 23.56
NSC Price Earnings VS Forward Price EarningsNSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • NSC's Enterprise Value to EBITDA is on the same level as the industry average.
  • 69.05% of the companies in the same industry are more expensive than NSC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 29.98
EV/EBITDA 14.34
NSC Per share dataNSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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)3.71
EPS Next 2Y4.53%
EPS Next 3Y6.19%

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

7

5. NSC Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.91%, NSC has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.71, NSC pays a better dividend. On top of this NSC pays more dividend than 90.48% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.88, NSC has a dividend comparable with the average S&P500 company.
Industry RankSector 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 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)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

  • 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 2Y4.53%
EPS Next 3Y6.19%
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

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NSC Fundamentals: All Metrics, Ratios and Statistics

NORFOLK SOUTHERN CORP

NYSE:NSC (4/2/2026, 8:04:00 PM)

After market: 288 0 (0%)

288

+1 (+0.35%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)01-29
Earnings (Next)04-21
Inst Owners78.12%
Inst Owner Change1.93%
Ins Owners0.03%
Ins Owner Change1.16%
Market Cap64.68B
Revenue(TTM)12.18B
Net Income(TTM)2.87B
Analysts69.63
Price Target320.41 (11.25%)
Short Float %3.89%
Short Ratio6.56
Dividend
Industry RankSector Rank
Dividend Yield 1.91%
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)1.76%
PT rev (3m)1.71%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-8.9%
EPS NY rev (1m)-1.31%
EPS NY rev (3m)-6.32%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.26%
Valuation
Industry RankSector Rank
PE 23.04
Fwd PE 23.56
P/S 5.31
P/FCF 29.98
P/OCF 14.83
P/B 4.16
P/tB 4.16
EV/EBITDA 14.34
EPS(TTM)12.5
EY4.34%
EPS(NY)12.23
Fwd EY4.25%
FCF(TTM)9.61
FCFY3.34%
OCF(TTM)19.42
OCFY6.74%
SpS54.24
BVpS69.23
TBVpS69.23
PEG (NY)N/A
PEG (5Y)3.71
Graham Number139.54
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 2.28
F-Score6
WACC10.01%
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 Year1.99%
Revenue Next 2Y3.38%
Revenue Next 3Y3.69%
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 23.04 and the Price/Book (PB) ratio is 4.16.


Can you provide the financial health for NSC stock?

The financial health rating of NORFOLK SOUTHERN CORP (NSC) is 3 / 10.