Norfolk Southern
Market Cap
US$48.2b
Last Updated
2019/10/23 23:42 UTC
Data Sources
Company Financials +
Executive Summary
Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods.
Snowflake
Fundamentals
Established dividend payer with mediocre balance sheet.
Similar Companies
Share Price & News
How has Norfolk Southern's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
2.1%
NSC
4.3%
US Transportation
0.07%
US Market
1 Year Return
15.4%
NSC
17.7%
US Transportation
8.9%
US Market
Return vs Industry: NSC exceeded the US Transportation industry which returned 17.7% over the past year.
Return vs Market: NSC exceeded the US Market which returned 8.9% over the past year.
Shareholder returns
| NSC | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.1% | 4.3% | 0.07% |
| 30 Day | 3.0% | 3.0% | -0.3% |
| 90 Day | -1.4% | -4.1% | -1.6% |
| 1 Year | 17.7%15.4% | 19.7%17.7% | 11.3%8.9% |
| 3 Year | 118.2%105.3% | 89.4%80.4% | 46.3%36.8% |
| 5 Year | 87.2%67.0% | 52.5%40.5% | 62.1%44.3% |
Price Volatility Vs. Market
How volatile is Norfolk Southern's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
What Kind Of Shareholder Owns Most Norfolk Southern Corporation (NYSE:NSC) Stock?1 week ago | Simply Wall St
Is Norfolk Southern (NYSE:NSC) Using Too Much Debt?3 weeks ago | Simply Wall St
Boasting A 18% Return On Equity, Is Norfolk Southern Corporation (NYSE:NSC) A Top Quality Stock?Valuation
Is Norfolk Southern undervalued compared to its fair value and its price relative to the market?
17.82x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NSC ($184.87) is trading above our estimate of fair value ($133.3)
Significantly Below Fair Value: NSC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NSC is poor value based on its PE Ratio (17.8x) compared to the Transportation industry average (18x).
PE vs Market: NSC is poor value based on its PE Ratio (17.8x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: NSC is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: NSC is overvalued based on its PB Ratio (3.2x) compared to the US Transportation industry average (2.3x).
Next Steps
Future Growth
How is Norfolk Southern forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
6.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NSC's forecast earnings growth (6.7% per year) is above the savings rate (2.7%).
Earnings vs Market: NSC's earnings (6.7% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: NSC's earnings are forecast to grow, but not significantly.
Revenue vs Market: NSC's revenue (3.2% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: NSC's revenue (3.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NSC's Return on Equity is forecast to be high in 3 years time (20%)
Next Steps
Past Performance
How has Norfolk Southern performed over the past 5 years?
21.3%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: NSC's earnings have grown significantly by 21.3% per year over the past 5 years.
Accelerating Growth: NSC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NSC had negative earnings growth (-51.2%) over the past year, making it difficult to compare to the Transportation industry average (-43.6%).
Return on Equity
High ROE: NSC's Return on Equity (18.3%) is considered low.
Return on Assets
ROA vs Industry: NSC has a higher Return on Assets than the Transportation industry average last year.
Return on Capital Employed
ROCE Improving: NSC has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Norfolk Southern's financial position?
Financial Position Analysis
Short Term Liabilities: NSC's short term assets ($1.9B) do not cover its short term liabilities ($2.5B)
Long Term Liabilities: NSC's short term assets (1.9B) do not cover its long term liabilities (19.4B)
Debt to Equity History and Analysis
Debt Level: NSC's debt to equity ratio (76.8%) is considered high
Reducing Debt: NSC's debt to equity ratio has reduced from 77.6% to 76.8% over the past 5 years.
Debt Coverage: NSC's debt is well covered by operating cash flow (32.8%).
Interest Coverage: NSC's interest payments on its debt are well covered by EBIT (7.1x coverage).
Balance Sheet
Inventory Level: NSC has a high level of physical assets or inventory.
Debt Coverage by Assets: NSC's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is Norfolk Southern's current dividend yield, its reliability and sustainability?
2.03%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: NSC's dividend (2.03%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: NSC's dividend (2.03%) is low compared to the top 25% of dividend payers in the US market (3.68%).
Stable Dividend: NSC's dividends per share have been stable in the past 10 years.
Growing Dividend: NSC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32%), NSC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NSC's dividends in 3 years are forecast to be well covered by earnings (28.9% payout ratio).
Next Steps
Management
What is the CEO of Norfolk Southern's salary, the management and board of directors tenure and is there insider trading?
2.2yrs
Average management tenure
CEO
Jim Squires (58yo)
4.3yrs
Tenure
US$14,271,985
Compensation
Mr. James A. Squires, also known as Jim, has been the Chief Executive Officer of Norfolk Southern Corporation since June 1, 2015, has been its President since June 1, 2013 and has been its Chairman since O ...
CEO Compensation Analysis
Compensation vs. Market: Jim's total compensation ($USD14.27M) is about average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.2yrs
Average Tenure
56yo
Average Age
Experienced Management: NSC's management team is considered experienced (2.2 years average tenure).
Board Age and Tenure
6.1yrs
Average Tenure
67yo
Average Age
Experienced Board: NSC's board of directors are considered experienced (6.1 years average tenure).
Insider Trading
Insider Buying: NSC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 525 |
| Max Price | US$191.52 |
| Entity | Individual |
| Role | Chief Executive Officer Chairman |
| Shares | 3,024 |
| Max Price | US$204.80 |
| Entity | Individual |
| Role | Chief Operating Officer Executive VP of Government Relations & COO |
| Shares | 2,500 |
| Max Price | US$204.57 |
| Entity | Individual |
| Shares | 519 |
| Max Price | US$181.34 |
| Entity | Individual |
| Role | Chief Operating Officer Executive VP of Government Relations & COO |
| Shares | 3,000 |
| Max Price | US$180.23 |
| Entity | Individual |
| Role | Chief Operating Officer Executive VP of Government Relations & COO |
| Shares | 801 |
| Max Price | US$172.55 |
Ownership Breakdown
Management Team
Jim Squires (58yo)
Chairman
- Tenure: 4.3yrs
- Compensation: US$14.27m
Cindy Earhart (57yo)
Executive VP & CFO
- Tenure: 2.2yrs
- Compensation: US$4.51m
Fred Ehlers
VP of Information Technology & Chief Information Officer
- Tenure: 2yrs
Mike Wheeler (56yo)
Executive VP of Government Relations & COO
- Tenure: 3.7yrs
- Compensation: US$4.86m
Alan Shaw (51yo)
Executive VP & Chief Marketing Officer
- Tenure: 4.4yrs
- Compensation: US$3.93m
John Scheib (47yo)
Executive VP & Chief Strategy Officer
- Tenure: 0.5yrs
- Compensation: US$2.66m
Susan Stuart
Vice President of Audit & Compliance
- Tenure: 2.7yrs
Vanessa L. Sutherland
Senior VP of Government Relations & Chief Legal Officer
- Tenure: 0.5yrs
Peter Sharbel
Director of Investor Relations
- Tenure: 0yrs
Anne Melaragni
Vice President of Human Resources
- Tenure: 0.3yrs
Board Members
Tom Bell (69yo)
Independent Director
- Tenure: 9.8yrs
- Compensation: US$281.67k
Dan Carp (71yo)
Independent Director
- Tenure: 13.8yrs
- Compensation: US$276.67k
Steve Leer (66yo)
Lead Independent Director
- Tenure: 6.4yrs
- Compensation: US$310.21k
Mitch Daniels (70yo)
Independent Director
- Tenure: 2.9yrs
- Compensation: US$251.67k
Michael Lockhart (70yo)
Independent Director
- Tenure: 11.1yrs
- Compensation: US$266.67k
Amy Miles (52yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$278.97k
Jim Squires (58yo)
Chairman
- Tenure: 4.3yrs
- Compensation: US$14.27m
John Thompson (68yo)
Independent Director
- Tenure: 6.7yrs
- Compensation: US$241.67k
Marcela Donadio (64yo)
Independent Director
- Tenure: 2.9yrs
- Compensation: US$245.42k
Jenny Scanlon (52yo)
Independent Director
- Tenure: 1.8yrs
- Compensation: US$246.67k
Company Information
Norfolk Southern Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Norfolk Southern Corporation
- Ticker: NSC
- Exchange: NYSE
- Founded: 1883
- Industry: Railroads
- Sector: Transportation
- Market Cap: US$48.204b
- Shares outstanding: 260.75m
- Website: https://www.nscorp.com
Number of Employees
Location
- Norfolk Southern Corporation
- Three Commercial Place
- Norfolk
- Virginia
- 23510
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NSC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 1982 |
| NFS | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 1982 |
| 0K8M | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jun 1982 |
| NSC * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 1982 |
| NSCO | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jun 1982 |
Biography
Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods. The company transports industrial products, inc ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 23:42 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.