NORFOLK SOUTHERN CORP (NSC)
US6558441084 - Common Stock
NSC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 37 industry peers in the Ground Transportation industry. While NSC is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, NSC is valued expensive at the moment.
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.
Each year in the past 5 years NSC has been profitable.
NSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NSC's Return On Assets of 5.58% is in line compared to the rest of the industry. NSC outperforms 59.46% of its industry peers.
Looking at the Return On Equity, with a value of 17.50%, NSC is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
The Return On Invested Capital of NSC (8.82%) is better than 67.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NSC is below the industry average of 11.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 17.5% | ||
| ROIC | 8.82% |
ROA(3y)6.86%
ROA(5y)6.61%
ROE(3y)20.65%
ROE(5y)18.69%
ROIC(3y)9.42%
ROIC(5y)8.92%
1.3 Margins
The Profit Margin of NSC (19.82%) is better than 81.08% of its industry peers.
NSC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 36.33%, NSC belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
NSC's Operating Margin has been stable in the last couple of years.
The Gross Margin of NSC (49.06%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of NSC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.33% | ||
| PM (TTM) | 19.82% | ||
| GM | 49.06% |
OM growth 3Y-1.93%
OM growth 5Y-1.14%
PM growth 3Y-9.93%
PM growth 5Y-8.36%
GM growth 3Y-2.03%
GM growth 5Y-0.36%
2. Health
2.1 Basic Checks
NSC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NSC has less shares outstanding
NSC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NSC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.03 indicates that NSC is not a great score, but indicates only limited risk for bankruptcy at the moment.
NSC has a worse Altman-Z score (2.03) than 62.16% of its industry peers.
NSC has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.21, NSC is not doing good in the industry: 70.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.03 |
ROIC/WACC1.11
WACC7.98%
2.3 Liquidity
NSC has a Current Ratio of 0.73. 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 0.73, NSC is doing worse than 83.78% of the companies in the same industry.
NSC has a Quick Ratio of 0.73. This is a bad value and indicates that NSC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.65, NSC is not doing good in the industry: 86.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for NSC have decreased by -5.75% in the last year.
Measured over the past 5 years, NSC shows a small growth in Earnings Per Share. The EPS has been growing by 4.30% on average per year.
The Revenue has decreased by -1.20% in the past year.
NSC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.19% yearly.
EPS 1Y (TTM)-5.75%
EPS 3Y8.3%
EPS 5Y4.3%
EPS Q2Q%22.64%
Revenue 1Y (TTM)-1.2%
Revenue growth 3Y7.49%
Revenue growth 5Y1.19%
Sales Q2Q%2.69%
3.2 Future
The Earnings Per Share is expected to grow by 9.39% 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 3.99% yearly.
EPS Next Y1.95%
EPS Next 2Y8.02%
EPS Next 3Y9.86%
EPS Next 5Y9.39%
Revenue Next Year-0.02%
Revenue Next 2Y2.11%
Revenue Next 3Y3.06%
Revenue Next 5Y3.99%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.13 indicates a rather expensive valuation of NSC.
Based on the Price/Earnings ratio, NSC is valued a bit cheaper than 72.97% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, NSC is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.08 indicates a rather expensive valuation of NSC.
72.97% 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 (22.83), we can say NSC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.13 | ||
| Fwd PE | 17.08 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.87 |
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 decent profitability rating of NSC may justify a higher PE ratio.
PEG (NY)10.35
PEG (5Y)4.68
EPS Next 2Y8.02%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
NSC has a Yearly Dividend Yield of 2.34%.
NSC's Dividend Yield is rather good when compared to the industry average which is at 1.28. NSC pays more dividend than 91.89% of the companies 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 | 2.34% |
5.2 History
On average, the dividend of NSC grows each year by 12.05%, which is quite nice.
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)12.05%
Div Incr Years7
Div Non Decr Years23
5.3 Sustainability
50.56% of the earnings are spent on dividend by NSC. This is a bit on the high side, but may be sustainable.
The dividend of NSC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.56%
EPS Next 2Y8.02%
EPS Next 3Y9.86%
NORFOLK SOUTHERN CORP
NYSE:NSC (12/20/2024, 8:04:00 PM)
After market: 233.81 -0.34 (-0.15%)234.15
+3.55 (+1.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners77.59%
Inst Owner Change3.21%
Ins Owners0.02%
Ins Owner Change0.3%
Market Cap52.97B
Analysts75
Price Target283.69 (21.16%)
Short Float %0.95%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Dividend Growth(5Y)12.05%
DP50.56%
Div Incr Years7
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.69%
Min EPS beat(2)3.5%
Max EPS beat(2)5.87%
EPS beat(4)2
Avg EPS beat(4)0.52%
Min EPS beat(4)-5%
Max EPS beat(4)5.87%
EPS beat(8)3
Avg EPS beat(8)-0.34%
EPS beat(12)5
Avg EPS beat(12)0.71%
EPS beat(16)9
Avg EPS beat(16)1.95%
Revenue beat(2)0
Avg Revenue beat(2)-1.47%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-0.81%
Revenue beat(4)0
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-2.53%
Max Revenue beat(4)-0.81%
Revenue beat(8)1
Avg Revenue beat(8)-1.4%
Revenue beat(12)5
Avg Revenue beat(12)-0.35%
Revenue beat(16)8
Avg Revenue beat(16)-0.03%
PT rev (1m)3.1%
PT rev (3m)5.17%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-6.85%
EPS NY rev (1m)0%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-4.48%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.13 | ||
| Fwd PE | 17.08 | ||
| P/S | 4.35 | ||
| P/FCF | N/A | ||
| P/OCF | 14.04 | ||
| P/B | 3.84 | ||
| P/tB | 3.84 | ||
| EV/EBITDA | 11.87 |
EPS(TTM)11.63
EY4.97%
EPS(NY)13.71
Fwd EY5.85%
FCF(TTM)-1.89
FCFYN/A
OCF(TTM)16.68
OCFY7.12%
SpS53.8
BVpS60.93
TBVpS60.93
PEG (NY)10.35
PEG (5Y)4.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 17.5% | ||
| ROCE | 11.17% | ||
| ROIC | 8.82% | ||
| ROICexc | 9.05% | ||
| ROICexgc | 9.05% | ||
| OM | 36.33% | ||
| PM (TTM) | 19.82% | ||
| GM | 49.06% | ||
| FCFM | N/A |
ROA(3y)6.86%
ROA(5y)6.61%
ROE(3y)20.65%
ROE(5y)18.69%
ROIC(3y)9.42%
ROIC(5y)8.92%
ROICexc(3y)9.66%
ROICexc(5y)9.13%
ROICexgc(3y)9.66%
ROICexgc(5y)9.13%
ROCE(3y)11.93%
ROCE(5y)11.29%
ROICexcg growth 3Y2.75%
ROICexcg growth 5Y-2.29%
ROICexc growth 3Y2.75%
ROICexc growth 5Y-2.29%
OM growth 3Y-1.93%
OM growth 5Y-1.14%
PM growth 3Y-9.93%
PM growth 5Y-8.36%
GM growth 3Y-2.03%
GM growth 5Y-0.36%
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 313.35% | ||
| Cap/Sales | 34.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 2.03 |
F-Score7
WACC7.98%
ROIC/WACC1.11
Cap/Depr(3y)154.99%
Cap/Depr(5y)154.34%
Cap/Sales(3y)15.93%
Cap/Sales(5y)16.19%
Profit Quality(3y)69.28%
Profit Quality(5y)76.68%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.75%
EPS 3Y8.3%
EPS 5Y4.3%
EPS Q2Q%22.64%
EPS Next Y1.95%
EPS Next 2Y8.02%
EPS Next 3Y9.86%
EPS Next 5Y9.39%
Revenue 1Y (TTM)-1.2%
Revenue growth 3Y7.49%
Revenue growth 5Y1.19%
Sales Q2Q%2.69%
Revenue Next Year-0.02%
Revenue Next 2Y2.11%
Revenue Next 3Y3.06%
Revenue Next 5Y3.99%
EBIT growth 1Y5.54%
EBIT growth 3Y5.41%
EBIT growth 5Y0.04%
EBIT Next Year39.21%
EBIT Next 3Y17.95%
EBIT Next 5Y13.25%
FCF growth 1Y-116.22%
FCF growth 3Y-27.11%
FCF growth 5Y-14.1%
OCF growth 1Y-13.56%
OCF growth 3Y-4.39%
OCF growth 5Y-3.13%