NORFOLK SOUTHERN CORP (NSC) Stock Fundamental Analysis
USA - NYSE:NSC - US6558441084 - Common Stock
290.06 USD
-1.09 (-0.37%)
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 correct valuation and a medium growth rate. NSC also has an excellent dividend rating.
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
With an excellent Return On Assets value of 7.58%, NSC belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
NSC has a Return On Equity of 22.63%. This is amongst the best in the industry. NSC outperforms 88.10% of its industry peers.
NSC has a Return On Invested Capital of 9.16%. This is in the better half of the industry: NSC outperforms 78.57% 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 7.76%.
The last Return On Invested Capital (9.16%) for NSC is above the 3 year average (9.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 22.63% | ||
| ROIC | 9.16% |
ROA(3y)6.26%
ROA(5y)6.38%
ROE(3y)19.41%
ROE(5y)18.77%
ROIC(3y)9.15%
ROIC(5y)8.93%
1.3 Margins
The Profit Margin of NSC (27.48%) is better than 92.86% of its industry peers.
In the last couple of years the Profit Margin of NSC has declined.
NSC has a better Operating Margin (38.68%) than 97.62% of its industry peers.
NSC's Operating Margin has been stable in the last couple of years.
NSC has a better Gross Margin (51.67%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of NSC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.68% | ||
| PM (TTM) | 27.48% | ||
| GM | 51.67% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NSC is creating some value.
The number of shares outstanding for NSC has been increased compared to 1 year ago.
NSC has less shares outstanding than it did 5 years ago.
NSC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.46 indicates that NSC is not a great score, but indicates only limited risk for bankruptcy at the moment.
NSC has a Altman-Z score of 2.46. This is comparable to the rest of the industry: NSC outperforms 57.14% of its industry peers.
NSC has a debt to FCF ratio of 8.58. This is a slightly negative value and a sign of low solvency as NSC would need 8.58 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.58, NSC is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 1.11 is on the high side and indicates that NSC has dependencies on debt financing.
NSC has a Debt to Equity ratio of 1.11. This is in the lower half of the industry: NSC underperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 8.58 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.01
WACC9.04%
2.3 Liquidity
A Current Ratio of 0.79 indicates that NSC may have some problems paying its short term obligations.
NSC has a Current ratio of 0.79. This is in the lower half of the industry: NSC underperforms 78.57% of its industry peers.
NSC has a Quick Ratio of 0.79. 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 Quick ratio of 0.71. This is amonst the worse of the industry: NSC underperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
NSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.24%, which is quite good.
NSC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.93% yearly.
Looking at the last year, NSC shows a small growth in Revenue. The Revenue has grown by 0.71% in the last year.
Measured over the past years, NSC shows a small growth in Revenue. The Revenue has been growing by 1.42% on average per year.
EPS 1Y (TTM)11.24%
EPS 3Y-0.78%
EPS 5Y2.93%
EPS Q2Q%7.52%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y2.85%
Revenue growth 5Y1.42%
Sales Q2Q%2.17%
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 9.42% yearly.
NSC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.65% yearly.
EPS Next Y7.25%
EPS Next 2Y9.35%
EPS Next 3Y9.66%
EPS Next 5Y9.42%
Revenue Next Year1.66%
Revenue Next 2Y2.91%
Revenue Next 3Y3.33%
Revenue Next 5Y3.65%
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.
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
The Price/Earnings ratio is 23.64, which indicates a rather expensive current valuation of NSC.
Based on the Price/Earnings ratio, NSC is valued a bit cheaper than 71.43% of the companies in the same industry.
NSC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.69.
NSC is valuated rather expensively with a Price/Forward Earnings ratio of 20.49.
64.29% of the companies in the same industry are more expensive than NSC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NSC to the average of the S&P500 Index (23.18), we can say NSC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.64 | ||
| Fwd PE | 20.49 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NSC.
76.19% of the companies in the same industry are more expensive than NSC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.07 | ||
| EV/EBITDA | 14.35 |
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 excellent profitability rating of NSC may justify a higher PE ratio.
PEG (NY)3.26
PEG (5Y)8.08
EPS Next 2Y9.35%
EPS Next 3Y9.66%
5. Dividend
5.1 Amount
NSC has a Yearly Dividend Yield of 1.87%.
Compared to an average industry Dividend Yield of 1.60, NSC pays a better dividend. On top of this NSC pays more dividend than 80.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, NSC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
The dividend of NSC is nicely growing with an annual growth rate of 8.41%!
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)8.41%
Div Incr Years0
Div Non Decr Years23
5.3 Sustainability
36.45% of the earnings are spent on dividend by NSC. This is a low number and sustainable payout ratio.
The dividend of NSC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP36.45%
EPS Next 2Y9.35%
EPS Next 3Y9.66%
NYSE:NSC (10/21/2025, 10:22:00 AM)
290.06
-1.09 (-0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners80.6%
Inst Owner Change-0.55%
Ins Owners0.02%
Ins Owner Change0.68%
Market Cap70.98B
Analysts70
Price Target306.7 (5.74%)
Short Float %1.65%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend5.4
Dividend Growth(5Y)8.41%
DP36.45%
Div Incr Years0
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.19%
Min EPS beat(2)-1.39%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)0.76%
Min EPS beat(4)-1.39%
Max EPS beat(4)3.5%
EPS beat(8)3
Avg EPS beat(8)-0.08%
EPS beat(12)5
Avg EPS beat(12)0.7%
EPS beat(16)7
Avg EPS beat(16)0.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)-0.43%
Revenue beat(4)0
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-2.12%
Max Revenue beat(4)-0.43%
Revenue beat(8)0
Avg Revenue beat(8)-1.24%
Revenue beat(12)2
Avg Revenue beat(12)-0.98%
Revenue beat(16)6
Avg Revenue beat(16)-0.28%
PT rev (1m)0.61%
PT rev (3m)10.78%
EPS NQ rev (1m)-2.77%
EPS NQ rev (3m)-4.02%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.64 | ||
| Fwd PE | 20.49 | ||
| P/S | 5.83 | ||
| P/FCF | 35.07 | ||
| P/OCF | 16.88 | ||
| P/B | 4.8 | ||
| P/tB | 4.8 | ||
| EV/EBITDA | 14.35 |
EPS(TTM)12.27
EY4.23%
EPS(NY)14.16
Fwd EY4.88%
FCF(TTM)8.27
FCFY2.85%
OCF(TTM)17.18
OCFY5.92%
SpS49.77
BVpS60.43
TBVpS60.43
PEG (NY)3.26
PEG (5Y)8.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 22.63% | ||
| ROCE | 11.64% | ||
| ROIC | 9.16% | ||
| ROICexc | 9.47% | ||
| ROICexgc | 9.47% | ||
| OM | 38.68% | ||
| PM (TTM) | 27.48% | ||
| GM | 51.67% | ||
| FCFM | 16.62% |
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%
ROICexcg growth 3Y-2.05%
ROICexcg 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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 8.58 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 158.78% | ||
| Cap/Sales | 17.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.1% | ||
| Profit Quality | 60.47% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 2.46 |
F-Score8
WACC9.04%
ROIC/WACC1.01
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)11.24%
EPS 3Y-0.78%
EPS 5Y2.93%
EPS Q2Q%7.52%
EPS Next Y7.25%
EPS Next 2Y9.35%
EPS Next 3Y9.66%
EPS Next 5Y9.42%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y2.85%
Revenue growth 5Y1.42%
Sales Q2Q%2.17%
Revenue Next Year1.66%
Revenue Next 2Y2.91%
Revenue Next 3Y3.33%
Revenue Next 5Y3.65%
EBIT growth 1Y22.55%
EBIT growth 3Y0.98%
EBIT growth 5Y2.8%
EBIT Next Year40.01%
EBIT Next 3Y16.85%
EBIT Next 5Y11.49%
FCF growth 1Y1.3%
FCF growth 3Y-78.42%
FCF growth 5Y-56.86%
OCF growth 1Y3.62%
OCF growth 3Y-1.62%
OCF growth 5Y0.81%