Norfolk Southern
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Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods. The last earnings update was 37 days ago. More info.
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NSC Share Price and Events
7 Day Returns
1 Year Returns
NSC Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Norfolk Southern (NSC) | 1.6% | -1.8% | 21.6% | 29.5% | 113.7% | 86.1% |
| US Transportation | 1.4% | -1.1% | 15.3% | 14.5% | 88.9% | 77% |
| US Market | 2.9% | 2.5% | 10% | 1.4% | 38.3% | 42% |
1 Year Return vs Industry and Market
- NSC outperformed the Transportation industry which returned 14.5% over the past year.
- NSC outperformed the Market in United States of America which returned 1.4% over the past year.
NSC Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Norfolk Southern
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Norfolk Southern.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 20 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.6% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Transportation Unlevered Beta | Simply Wall St/ S&P Global | 1.04 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.036 (1 + (1- 21%) (23.8%)) |
1.154 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.15 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.154 * 5.96%) |
9.61% |
Discounted Cash Flow Calculation for NYSE:NSC using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Norfolk Southern is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.61%) |
|
|---|---|---|---|
| 2019 | 2,117.56 | Analyst x9 | 1,931.90 |
| 2020 | 2,398.67 | Analyst x9 | 1,996.50 |
| 2021 | 2,535.00 | Analyst x4 | 1,924.99 |
| 2022 | 2,516.00 | Analyst x1 | 1,743.05 |
| 2023 | 2,663.00 | Analyst x1 | 1,683.14 |
| 2024 | 2,741.92 | Est @ 2.96% | 1,581.08 |
| 2025 | 2,821.25 | Est @ 2.89% | 1,484.19 |
| 2026 | 2,901.50 | Est @ 2.84% | 1,392.58 |
| 2027 | 2,983.04 | Est @ 2.81% | 1,306.19 |
| 2028 | 3,066.14 | Est @ 2.79% | 1,224.87 |
| Present value of next 10 years cash flows | $16,268.50 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $3,066.14 × (1 + 2.73%) ÷ (9.61% – 2.73%) |
$45,782.71 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $45,782.71 ÷ (1 + 9.61%)10 |
$18,289.41 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $16,268.50 + $18,289.41 |
$34,557.91 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $34,557.91 / 267.46 |
$129.21 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $129.21 |
| Current discount | Discount to share price of
$179.52
= -1 x ($179.52 - $129.21) / $129.21 |
-38.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Norfolk Southern is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Norfolk Southern's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Norfolk Southern's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $9.58 |
| NYSE:NSC Share Price ** | NYSE (2019-03-15) in USD | $179.52 |
| United States of America Transportation Industry PE Ratio | Median Figure of 24 Publicly-Listed Transportation Companies | 17.72x |
| United States of America Market PE Ratio | Median Figure of 3,054 Publicly-Listed Companies | 17.61x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Norfolk Southern.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:NSC Share Price ÷ EPS (both in USD) = 179.52 ÷ 9.58 |
18.74x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Norfolk Southern is overvalued based on earnings compared to the US Transportation industry average.
- Norfolk Southern is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Norfolk Southern's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 18.74x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts |
8.1%per year |
| United States of America Transportation Industry PEG Ratio | Median Figure of 21 Publicly-Listed Transportation Companies | 2.03x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.47x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 18.74x ÷ 8.1% |
2.3x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Norfolk Southern is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Norfolk Southern's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $57.30 |
| NYSE:NSC Share Price * | NYSE (2019-03-15) in USD | $179.52 |
| United States of America Transportation Industry PB Ratio | Median Figure of 25 Publicly-Listed Transportation Companies | 1.92x |
| United States of America Market PB Ratio | Median Figure of 5,152 Publicly-Listed Companies | 1.87x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:NSC Share Price ÷ Book Value per Share (both in USD) = 179.52 ÷ 57.30 |
3.13x |
* Primary Listing of Norfolk Southern.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Norfolk Southern is overvalued based on assets compared to the US Transportation industry average.
Value checks
We assess Norfolk Southern's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Transportation industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Transportation industry average (and greater than 0)? (1 check) Norfolk Southern has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
NSC Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Norfolk Southern's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Norfolk Southern's earnings growth is positive but not above the United States of America market average.
- Norfolk Southern's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:NSC Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts | 8.1% |
| NYSE:NSC Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts | 3.7% |
| United States of America Transportation Industry Earnings Growth Rate | Market Cap Weighted Average | 7.1% |
| United States of America Transportation Industry Revenue Growth Rate | Market Cap Weighted Average | 4% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 13,701 | 5,101 | 1 | |
| 2022-12-31 | 13,165 | 4,869 | 1 | |
| 2021-12-31 | 12,876 | 4,792 | 3,403 | 11 |
| 2020-12-31 | 12,425 | 4,473 | 3,116 | 20 |
| 2019-12-31 | 11,938 | 4,137 | 2,824 | 20 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 11,458 | 3,726 | 2,660 |
| 2018-09-30 | 11,231 | 3,672 | 5,927 |
| 2018-06-30 | 10,954 | 3,503 | 5,732 |
| 2018-03-31 | 10,693 | 3,223 | 5,519 |
| 2017-12-31 | 10,551 | 3,253 | 5,400 |
| 2017-09-30 | 10,372 | 3,187 | 1,849 |
| 2017-06-30 | 10,226 | 3,178 | 1,801 |
| 2017-03-31 | 10,043 | 3,001 | 1,709 |
| 2016-12-31 | 9,888 | 3,034 | 1,663 |
| 2016-09-30 | 9,916 | 3,012 | 1,607 |
| 2016-06-30 | 10,105 | 2,839 | 1,600 |
| 2016-03-31 | 10,364 | 3,156 | 1,628 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
All data from Norfolk Southern Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | ||||
| 2021-12-31 | 13.82 | 14.50 | 13.09 | 7.00 |
| 2020-12-31 | 12.05 | 12.65 | 11.47 | 15.00 |
| 2019-12-31 | 10.52 | 10.80 | 10.30 | 18.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 9.58 |
| 2018-09-30 | 21.07 |
| 2018-06-30 | 20.16 |
| 2018-03-31 | 19.29 |
| 2017-12-31 | 18.76 |
| 2017-09-30 | 6.39 |
| 2017-06-30 | 6.19 |
| 2017-03-31 | 5.85 |
| 2016-12-31 | 5.66 |
| 2016-09-30 | 5.44 |
| 2016-06-30 | 5.38 |
| 2016-03-31 | 5.44 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Norfolk Southern's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Norfolk Southern has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
NSC Past Performance
How has Norfolk Southern performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Norfolk Southern has delivered over 20% year on year earnings growth in the past 5 years.
- Norfolk Southern's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Norfolk Southern's 1-year earnings growth is negative, it can't be compared to the US Transportation industry average.
Earnings and Revenue History
All data from Norfolk Southern Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 11,458.00 | 2,660.00 | ||
| 2018-09-30 | 11,231.00 | 5,927.00 | ||
| 2018-06-30 | 10,954.00 | 5,732.00 | ||
| 2018-03-31 | 10,693.00 | 5,519.00 | ||
| 2017-12-31 | 10,551.00 | 5,400.00 | ||
| 2017-09-30 | 10,372.00 | 1,849.00 | ||
| 2017-06-30 | 10,226.00 | 1,801.00 | ||
| 2017-03-31 | 10,043.00 | 1,709.00 | ||
| 2016-12-31 | 9,888.00 | 1,663.00 | ||
| 2016-09-30 | 9,916.00 | 1,607.00 | ||
| 2016-06-30 | 10,105.00 | 1,600.00 | ||
| 2016-03-31 | 10,364.00 | 1,628.00 | ||
| 2015-12-31 | 10,511.00 | 1,550.00 | ||
| 2015-09-30 | 10,863.00 | 1,700.00 | ||
| 2015-06-30 | 11,173.00 | 1,808.00 | ||
| 2015-03-31 | 11,502.00 | 1,936.00 | ||
| 2014-12-31 | 11,624.00 | 1,994.00 | ||
| 2014-09-30 | 11,635.00 | 1,995.00 | ||
| 2014-06-30 | 11,436.00 | 1,917.00 | ||
| 2014-03-31 | 11,196.00 | 1,821.00 | ||
| 2013-12-31 | 11,245.00 | 1,903.00 | ||
| 2013-09-30 | 11,048.00 | 1,803.00 | ||
| 2013-06-30 | 10,917.00 | 1,722.00 | ||
| 2013-03-31 | 10,989.00 | 1,781.00 | ||
| 2012-12-31 | 11,040.00 | 1,740.00 | ||
| 2012-09-30 | 11,153.00 | 1,806.00 | ||
| 2012-06-30 | 11,349.00 | 1,959.00 | ||
| 2012-03-31 | 11,341.00 | 1,991.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Norfolk Southern has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Norfolk Southern used its assets more efficiently than the US Transportation industry average last year based on Return on Assets.
- Norfolk Southern has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Norfolk Southern's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Transportation industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Norfolk Southern has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
NSC Health
How is Norfolk Southern's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Norfolk Southern's finances.
The net worth of a company is the difference between its assets and liabilities.
- Norfolk Southern's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Norfolk Southern's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Norfolk Southern Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 15,362.00 | 11,425.00 | 358.00 |
| 2018-09-30 | 15,480.00 | 11,415.00 | 729.00 |
| 2018-06-30 | 16,559.00 | 9,926.00 | 430.00 |
| 2018-03-31 | 16,418.00 | 10,567.00 | 1,072.00 |
| 2017-12-31 | 16,359.00 | 10,116.00 | 690.00 |
| 2017-09-30 | 12,727.00 | 10,160.00 | 724.00 |
| 2017-06-30 | 12,662.00 | 10,153.00 | 642.00 |
| 2017-03-31 | 12,527.00 | 10,399.00 | 955.00 |
| 2016-12-31 | 12,409.00 | 10,492.00 | 956.00 |
| 2016-09-30 | 12,396.00 | 10,385.00 | 984.00 |
| 2016-06-30 | 12,273.00 | 10,379.00 | 866.00 |
| 2016-03-31 | 12,223.00 | 9,778.00 | 589.00 |
| 2015-12-31 | 12,188.00 | 10,373.00 | 1,101.00 |
| 2015-09-30 | 12,129.00 | 9,776.00 | 433.00 |
| 2015-06-30 | 12,077.00 | 9,670.00 | 889.00 |
| 2015-03-31 | 12,158.00 | 9,210.00 | 524.00 |
| 2014-12-31 | 12,408.00 | 9,265.00 | 973.00 |
| 2014-09-30 | 12,439.00 | 9,054.00 | 1,432.00 |
| 2014-06-30 | 12,077.00 | 9,380.00 | 1,667.00 |
| 2014-03-31 | 11,693.00 | 9,487.00 | 1,532.00 |
| 2013-12-31 | 11,289.00 | 9,581.00 | 1,561.00 |
| 2013-09-30 | 10,294.00 | 9,079.00 | 1,004.00 |
| 2013-06-30 | 10,188.00 | 8,610.00 | 587.00 |
| 2013-03-31 | 10,110.00 | 8,618.00 | 687.00 |
| 2012-12-31 | 9,760.00 | 8,815.00 | 668.00 |
| 2012-09-30 | 9,767.00 | 8,613.00 | 708.00 |
| 2012-06-30 | 9,778.00 | 8,132.00 | 371.00 |
| 2012-03-31 | 9,815.00 | 8,150.00 | 831.00 |
- Norfolk Southern's level of debt (74.4%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (84.8% vs 74.4% today).
- Debt is well covered by operating cash flow (32.6%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 7.2x coverage).
Financial health checks
We assess Norfolk Southern's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Norfolk Southern has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
NSC Dividends
What is Norfolk Southern's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Norfolk Southern
shares you are expected to receive
$38
in your first year as a dividend.
Dividend Amount
- Norfolk Southern's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
- Norfolk Southern's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| United States of America Transportation Industry Average Dividend Yield | Market Cap Weighted Average of 18 Stocks | 1.7% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2005 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 3.40 | 1.00 |
| 2022-12-31 | 3.35 | 1.00 |
| 2021-12-31 | 3.90 | 9.00 |
| 2020-12-31 | 3.68 | 13.00 |
| 2019-12-31 | 3.37 | 16.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-01-23 | 3.440 | 1.957 |
| 2018-10-23 | 3.200 | 1.998 |
| 2018-07-27 | 3.200 | 1.829 |
| 2018-04-24 | 2.880 | 1.889 |
| 2018-01-23 | 2.880 | 2.068 |
| 2017-10-24 | 2.440 | 1.759 |
| 2017-07-28 | 2.440 | 1.967 |
| 2017-04-25 | 2.440 | 2.051 |
| 2017-01-24 | 2.440 | 2.075 |
| 2016-10-25 | 2.360 | 2.257 |
| 2016-07-29 | 2.360 | 2.550 |
| 2016-04-19 | 2.360 | 2.722 |
| 2016-01-26 | 2.360 | 3.074 |
| 2015-10-27 | 2.360 | 2.825 |
| 2015-07-24 | 2.360 | 2.969 |
| 2015-04-28 | 2.360 | 2.560 |
| 2015-01-23 | 2.360 | 2.214 |
| 2014-10-21 | 2.280 | 2.099 |
| 2014-07-22 | 2.280 | 2.138 |
| 2014-04-22 | 2.160 | 2.161 |
| 2014-01-21 | 2.160 | 2.301 |
| 2013-10-22 | 2.080 | 2.350 |
| 2013-07-23 | 2.080 | 2.745 |
| 2013-04-23 | 2.000 | 2.624 |
| 2013-01-22 | 2.000 | 2.738 |
| 2012-10-23 | 2.000 | 3.256 |
| 2012-08-01 | 2.000 | 2.843 |
| 2012-04-24 | 1.880 | 2.688 |
| 2012-01-24 | 1.880 | 2.733 |
| 2011-10-25 | 1.720 | 2.335 |
| 2011-07-26 | 1.720 | 2.575 |
| 2011-04-26 | 1.600 | 2.195 |
| 2011-01-25 | 1.600 | 2.443 |
| 2010-10-26 | 1.440 | 2.302 |
| 2010-07-27 | 1.440 | 2.489 |
| 2010-04-27 | 1.360 | 2.431 |
| 2010-01-26 | 1.360 | 2.542 |
| 2009-10-27 | 1.360 | 2.634 |
| 2009-07-28 | 1.360 | 2.951 |
| 2009-04-21 | 1.360 | 3.568 |
| 2009-03-18 | 1.360 | 3.879 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Norfolk Southern's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (3.2x coverage).
- Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
Income/ dividend checks
We assess Norfolk Southern's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Norfolk Southern afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Norfolk Southern has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
NSC Management
CEO
| COMPENSATION | $11,937,137 |
| AGE | 57 |
| TENURE AS CEO | 3.8 years |
CEO Bio
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 October 1, 2015. Mr. Squires served as Executive Vice President of Administration at Norfolk Southern Corporation from August 1, 2012 to June 1, 2013. He served as the Chief Financial Officer at Norfolk Southern Corp., since July 1, 2007 until August 1, 2012 and also served as its Executive Vice President of Finance since April 1, 2007 until August 1, 2012. Mr. Squires served as Senior Vice President Finance and Senior Vice President of Law at Norfolk Southern Railway Co. Previously, he served as Senior Vice President of Financial Planning of Norfolk Southern Corp., from April 1, 2006 to April 1, 2007, Vice President of Law from October 1, 2004 to April 1, 2004 prior to which he served as its vice president of Law from December 1, 2003 to October 1, 2004. He also served as the Senior General Counsel of Norfolk Southern Corp. Mr. Squires joined Norfolk Southern in 1992 as an attorney and served in positions of increasing responsibility. He has been Director of Norfolk Southern Corporation since January 21, 2014. He received a degree from Amherst College and a law degree from University of Chicago.
CEO Compensation
- Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
- Jim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Norfolk Southern management team in years:
- The tenure for the Norfolk Southern management team is about average.
Management Team
Jim Squires
Chairman
$12M
57
3.8 yrs
Cindy Earhart
Executive VP of Finance & CFO
$4M
56
1.6 yrs
Mike Wheeler
Executive VP & COO
$4M
55
3.1 yrs
Alan Shaw
Executive VP & Chief Marketing Officer
$4M
50
3.8 yrs
Fred Ehlers
VP of Information Technology & Chief Information Officer
1.4 yrs
John Scheib
Executive VP Law & Administration and Chief Legal Officer
46
1 yrs
Clay Moore
Director of Investor Relations
Susan Stuart
Vice President of Audit & Compliance
2.1 yrs
Tom Werner
VP of Corporate Communications & Chief Sustainability Officer
2.1 yrs
Ann Adams
Vice President of Human Resources
2.9 yrs
Board of Directors Tenure
Average tenure and age of the Norfolk Southern board of directors in years:
- The tenure for the Norfolk Southern board of directors is about average.
Board of Directors
Jim Squires
Chairman
$12M
57
3.4 yrs
Steve Leer
Lead Independent Director
$310K
65
5.8 yrs
Dan Carp
Independent Director
$280K
70
13.2 yrs
Tom Bell
Independent Director
$282K
68
9.2 yrs
Amy Miles
Independent Director
$282K
51
5.2 yrs
Michael Lockhart
Independent Director
$242K
69
10.5 yrs
Marty Nesbitt
Independent Director
$262K
56
6.1 yrs
John Thompson
Independent Director
$250K
67
6.1 yrs
Mitch Daniels
Independent Director
$242K
69
2.3 yrs
Marcela Donadio
Independent Director
$250K
63
2.3 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 15. Feb 19 | Sell | Jason Zampi | Individual | 14. Feb 19 | 14. Feb 19 | -519 | $181.34 | $-94,117 | ||
| 14. Feb 19 | Sell | Michael Wheeler | Individual | 12. Feb 19 | 12. Feb 19 | -3,000 | $180.23 | $-540,704 | ||
| 08. Nov 18 | Sell | Michael Wheeler | Individual | 07. Nov 18 | 07. Nov 18 | -801 | $172.55 | $-138,216 | ||
| 17. May 18 | Sell | Michael Wheeler | Individual | 16. May 18 | 16. May 18 | -2,000 | $151.33 | $-302,661 | ||
| 11. May 18 | Sell | Cynthia Earhart | Individual | 10. May 18 | 10. May 18 | -3,981 | $150.91 | $-600,784 | ||
Management checks
We assess Norfolk Southern's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Norfolk Southern has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
NSC News
Simply Wall St News
How Should Investors Feel About Norfolk Southern Corporation's (NYSE:NSC) CEO Pay?
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Jim Squires's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Norfolk Southern Corporation has a market cap of US$48b, and is paying total annual CEO compensation of US$12m.
Simply Wall St - – Full articleHow Do Analysts See Norfolk Southern Corporation (NYSE:NSC) Performing In The Years Ahead?
Norfolk Southern Corporation's (NYSE:NSC) most recent earnings announcement in December 2018a … confirmed
Simply Wall St - – Full articleNorfolk Southern Corporation (NYSE:NSC) Delivered A Better ROE Than Its Industry
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Norfolk Southern has a return on equity of 17% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleWhat Should We Expect From Norfolk Southern Corporation's (NYSE:NSC) Earnings Over The Next Year?
Help shape the future of investing tools and you could win a $250 gift card! … As Norfolk Southern Corporation (NYSE:NSC) released its earnings announcement on 31 December 2018, … with earnings expected to grow by 3.6% in the upcoming year
Simply Wall St - – Full articleNorfolk Southern Corporation (NYSE:NSC): Ex-Dividend Is In 2 Days
Norfolk Southern Corporation (NYSE:NSC) will be distributing its dividend of US$0.86 per share on the 11 March 2019, and will start trading ex-dividend in 2 days time on the 01 February 2019. … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout? … Is its earnings sufficient to payout dividend at the current rate
Simply Wall St - – Full articleNorfolk Southern Corporation (NYSE:NSC) Insiders Have Been Selling
So before you buy or sell Norfolk Southern Corporation (NYSE:NSC), you may well want to know whether insiders have been buying or selling. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'? … That means that an insider was selling shares at slightly below the current price (US$164)
Simply Wall St - – Full articleA Spotlight On Norfolk Southern Corporation's (NYSE:NSC) Fundamentals
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Norfolk Southern Corporation (NYSE:NSC) due to its excellent fundamentals in more than one area.
Simply Wall St - – Full articleDo Institutions Own Norfolk Southern Corporation (NYSE:NSC) Shares?
The big shareholder groups in Norfolk Southern Corporation (NYSE:NSC) have power over the company. … With a market capitalization of US$39b, Norfolk Southern is rather large. … Companies of this size are usually well known to retail investors, too.
Simply Wall St - – Full articleAt US$157, Is Norfolk Southern Corporation (NYSE:NSC) Worth Looking At Closely?
received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $186.71 at one point, and dropping to the lows of $156.97. … A question to answer is whether Norfolk Southern's current trading price of $156.99 reflective of the actual value of the? … Let’s take a look at Norfolk Southern’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleNorfolk Southern Corporation (NYSE:NSC): What Are Investors Earning On Their Capital?
and want a simplistic look at the return on Norfolk Southern Corporation (NYSE:NSC) stock. … Thus, to understand how your money can grow by investing in Norfolk Southern, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Norfolk Southern's Return On Capital Employed
Simply Wall St - – Full articleNSC Company Info
Description
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, including chemicals, agriculture, and metals and construction materials; and coal, automobiles, and automotive parts. It also transports overseas freight through various Atlantic and Gulf Coast ports; and provides commuter passenger services. As of December 31, 2018, the company operated approximately 19,500 route miles in 22 states and the District of Columbia in the United States. Norfolk Southern Corporation was founded in 1883 and is based in Norfolk, Virginia.
Details
| Name: | Norfolk Southern Corporation |
| NSC | |
| Exchange: | NYSE |
| Founded: | 1883 |
| $48,013,580,123 | |
| 267,455,326 | |
| Website: | http://www.nscorp.com |
| Address: |
Norfolk Southern Corporation Three Commercial Place, Norfolk, Virginia, 23510, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | NSC | Common Stock | New York Stock Exchange | US | USD | 02. Jun 1982 | |
| DB | NFS | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jun 1982 | |
| LSE | 0K8M | Common Stock | London Stock Exchange | GB | USD | 02. Jun 1982 | |
| BMV | NSC * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 02. Jun 1982 |
Number of employees
Current staff
Industry
| Railroads | |
| Transportation |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/17 23:39 |
| End of day share price update: | 2019/03/15 00:00 |
| Last estimates confirmation: | 2019/03/13 |
| Last earnings filing: | 2019/02/08 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
