Stock Analysis Report

Executive Summary

Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States.

Snowflake Analysis

Established dividend payer with proven track record.

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

Stable Share Price: NSC's share price has been volatile over the past 3 months.

Market Performance

7 Day Return




US Transportation


US Market

1 Year Return




US Transportation


US Market

Return vs Industry: NSC underperformed the US Transportation industry which returned -21.2% over the past year.

Return vs Market: NSC underperformed the US Market which returned -12.7% over the past year.

Shareholder returns

7 Day5.7%6.2%7.2%
30 Day-18.7%-14.1%-12.6%
90 Day-23.6%-18.8%-19.4%
1 Year-21.7%-23.2%-16.9%-18.4%-8.5%-10.4%
3 Year36.5%28.7%28.5%22.3%15.8%8.3%
5 Year58.9%42.0%36.0%35.4%35.8%21.0%

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


Is Norfolk Southern undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NSC ($143.36) is trading below our estimate of fair value ($153.62)

Significantly Below Fair Value: NSC is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: NSC is good value based on its PE Ratio (13.9x) compared to the Transportation industry average (17.7x).

PE vs Market: NSC is poor value based on its PE Ratio (13.9x) compared to the US market (13x).

Price to Earnings Growth Ratio

PEG Ratio: NSC is poor value based on its PEG Ratio (2.4x)

Price to Book Ratio

PB vs Industry: NSC is overvalued based on its PB Ratio (2.4x) compared to the US Transportation industry average (1.8x).

Next Steps

Future Growth

How is Norfolk Southern forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NSC's forecast earnings growth (5.7% per year) is above the savings rate (1.7%).

Earnings vs Market: NSC's earnings (5.7% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: NSC's earnings are forecast to grow, but not significantly.

Revenue vs Market: NSC's revenue (1.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NSC's revenue (1.7% 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 low in 3 years time (19.1%).

Next Steps

Past Performance

How has Norfolk Southern performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NSC has high quality earnings.

Growing Profit Margin: NSC's current net profit margins (24.1%) are higher than last year (23.2%).

Past Earnings Growth Analysis

Earnings Trend: NSC's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: NSC's earnings growth over the past year (2.1%) is below its 5-year average (18% per year).

Earnings vs Industry: NSC earnings growth over the past year (2.1%) exceeded the Transportation industry -12.4%.

Return on Equity

High ROE: NSC's Return on Equity (17.9%) is considered low.

Next Steps

Financial Health

How is Norfolk Southern's financial position?

Financial Position Analysis

Short Term Liabilities: NSC's short term assets ($2.1B) do not cover its short term liabilities ($2.3B).

Long Term Liabilities: NSC's short term assets ($2.1B) do not cover its long term liabilities ($20.4B).

Debt to Equity History and Analysis

Debt Level: NSC's debt to equity ratio (82.1%) is considered high.

Reducing Debt: NSC's debt to equity ratio has increased from 74.7% to 82.1% over the past 5 years.

Debt Coverage: NSC's debt is well covered by operating cash flow (31.2%).

Interest Coverage: NSC's interest payments on its debt are well covered by EBIT (6.7x 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


What is Norfolk Southern's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NSC's dividend (2.62%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: NSC's dividend (2.62%) is low compared to the top 25% of dividend payers in the US market (5.49%).

Stability and Growth of Payments

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 (34.9%), 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 (32.9% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Jim Squires (58yo)





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 ($USD14.27M) is about average for companies of similar size in the US market ($USD11.74M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.

Leadership Team

James Squires
Chairman4.67yrsUS$14.27m0.054% $20.4m
Michael Wheeler
Executive VP & COO4yrsUS$4.86m0.0085% $3.2m
Alan Shaw
Executive VP & Chief Marketing Officer4.83yrsUS$3.93m0.0089% $3.4m
John Scheib
Executive VP & Chief Strategy Officer0.83yrUS$2.66m0.0039% $1.5m
Mark George
Executive VP of Finance & CFO0.25yrno datano data
Fredric Ehlers
VP of Information Technology & Chief Information Officer2.42yrsno datano data
Peter Sharbel
Director of Investor Relationsno datano datano data
Susan Stuart
Vice President of Audit & Compliance3yrsno datano data
Vanessa L. Sutherland
Executive Vice President & Chief Legal Officer0.83yrno data0.00016% $61.0k
Ann Adams
Executive VP & Chief Transformation Officer0.83yrno data0.0027% $1.0m


Average Tenure


Average Age

Experienced Management: NSC's management team is considered experienced (2.4 years average tenure).

Board Members

James Squires
Chairman4.67yrsUS$14.27m0.054% $20.4m
Thomas Bell
Independent Director10.17yrsUS$281.67k0.0012% $446.1k
Daniel Carp
Independent Director14.17yrsUS$276.67k0.0015% $583.3k
Steven Leer
Lead Independent Director6.83yrsUS$310.21k0.0012% $446.1k
Mitchell Daniels
Independent Director3.25yrsUS$251.67kno data
Michael Lockhart
Independent Director11.42yrsUS$266.67k0.0014% $552.8k
Amy Miles
Independent Director6.17yrsUS$278.97k0.0012% $446.1k
John Thompson
Independent Director7yrsUS$241.67k0.0012% $469.0k
Marcela Donadio
Independent Director3.25yrsUS$245.42k0.000010% $3.8k
Jennifer Scanlon
Independent Director2.17yrsUS$246.67k0.00020% $76.3k


Average Tenure


Average Age

Experienced Board: NSC's board of directors are considered experienced (6.5 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: NSC insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

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: 1980
  • Industry: Railroads
  • Sector: Transportation
  • Market Cap: US$38.126b
  • Shares outstanding: 257.10m
  • Website: https://www.norfolksouthern.com

Number of Employees


  • Norfolk Southern Corporation
  • Three Commercial Place
  • Norfolk
  • Virginia
  • 23510-2191
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NSCNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1982
NFSDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1982
NFSXTRA (XETRA Trading Platform)YesCommon StockDEEURJun 1982
0K8MLSE (London Stock Exchange)YesCommon StockGBUSDJun 1982
NSC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1982
NSCOWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1982


Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. 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, 2019, the company operated approximately 19,500 route miles in 22 states and the District of Columbia. Norfolk Southern Corporation was incorporated in 1980 and is based in Norfolk, Virginia. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:07
End of Day Share Price2020/03/30 00:00
Annual Earnings2019/12/31

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.