company background image
NSC

Norfolk SouthernNYSE:NSC Stock Report

Last Price

US$288.28

Market Cap

US$70.2b

7D

0.1%

1Y

14.0%

Updated

17 Jan, 2022

Data

Company Financials +
NSC fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends5/6

NSC Stock Overview

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

Norfolk Southern Competitors

CSX

NasdaqGS:CSX

US$80.8b

Kansas City Southern

NYSE:KSU

US$26.7b

Canadian National Railway

TSX:CNR

CA$109.7b

Canadian Pacific Railway

TSX:CP

CA$91.4b

Price History & Performance

Summary of all time highs, changes and price drops for Norfolk Southern
Historical stock prices
Current Share PriceUS$288.28
52 Week HighUS$299.20
52 Week LowUS$230.15
Beta1.36
1 Month Change1.23%
3 Month Change4.84%
1 Year Change13.97%
3 Year Change70.53%
5 Year Change153.88%
Change since IPO1,971.47%

Recent News & Updates

Jan 11
Norfolk Southern Corporation (NYSE:NSC) Shares Could Be 34% Above Their Intrinsic Value Estimate

Norfolk Southern Corporation (NYSE:NSC) Shares Could Be 34% Above Their Intrinsic Value Estimate

In this article we are going to estimate the intrinsic value of Norfolk Southern Corporation ( NYSE:NSC ) by projecting...

Dec 29

Norfolk Southern - Almost A 'Must-Have'

It's a tough market environment for dividend investors as yields have fallen off a cliff due to inflation and a zero rate Fed policy. Norfolk Southern, although flying under the radar, offers tremendous dividend growth and long-term alpha. The stock is not cheap, but I recommend buying on any weakness.

Dec 05
What Is Norfolk Southern Corporation's (NYSE:NSC) Share Price Doing?

What Is Norfolk Southern Corporation's (NYSE:NSC) Share Price Doing?

Norfolk Southern Corporation ( NYSE:NSC ) saw a double-digit share price rise of over 10% in the past couple of months...

Shareholder Returns

NSCUS TransportationUS Market
7D0.1%-1.3%-0.3%
1Y14.0%8.4%13.7%

Return vs Industry: NSC exceeded the US Transportation industry which returned 8.4% over the past year.

Return vs Market: NSC matched the US Market which returned 13.7% over the past year.

Price Volatility

Is NSC's price volatile compared to industry and market?
NSC volatility
NSC Average Weekly Movement2.7%
Transportation Industry Average Movement7.0%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: NSC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NSC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198019,100Jim Squireshttps://www.norfolksouthern.com

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 agriculture, forest and consumer products, chemicals, 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.

Norfolk Southern Fundamentals Summary

How do Norfolk Southern's earnings and revenue compare to its market cap?
NSC fundamental statistics
Market CapUS$70.15b
Earnings (TTM)US$2.91b
Revenue (TTM)US$10.86b

24.1x

P/E Ratio

6.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NSC income statement (TTM)
RevenueUS$10.86b
Cost of RevenueUS$5.29b
Gross ProfitUS$5.57b
ExpensesUS$2.66b
EarningsUS$2.91b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 26, 2022

Earnings per share (EPS)11.97
Gross Margin51.28%
Net Profit Margin26.83%
Debt/Equity Ratio103.4%

How did NSC perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

34%

Payout Ratio

Valuation

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

24.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NSC ($288.28) is trading above our estimate of fair value ($215.3)

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 (24.1x) compared to the US Transportation industry average (18.1x).

PE vs Market: NSC is poor value based on its PE Ratio (24.1x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: NSC is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: NSC is overvalued based on its PB Ratio (5.1x) compared to the US Transportation industry average (2.3x).


Future Growth

How is Norfolk Southern forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NSC's forecast earnings growth (6.8% per year) is above the savings rate (2%).

Earnings vs Market: NSC's earnings (6.8% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: NSC's revenue (4.9% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: NSC's revenue (4.9% 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 (21.5%)


Past Performance

How has Norfolk Southern performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NSC has high quality earnings.

Growing Profit Margin: NSC's current net profit margins (26.8%) are higher than last year (20.2%).


Past Earnings Growth Analysis

Earnings Trend: NSC's earnings have declined by 2.6% per year over the past 5 years.

Accelerating Growth: NSC's earnings growth over the past year (45.4%) exceeds its 5-year average (-2.6% per year).

Earnings vs Industry: NSC earnings growth over the past year (45.4%) underperformed the Transportation industry 68.6%.


Return on Equity

High ROE: Whilst NSC's Return on Equity (21%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Norfolk Southern's financial position?


Financial Position Analysis

Short Term Liabilities: NSC's short term assets ($2.7B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: NSC's short term assets ($2.7B) do not cover its long term liabilities ($22.3B).


Debt to Equity History and Analysis

Debt Level: NSC's net debt to equity ratio (92.9%) is considered high.

Reducing Debt: NSC's debt to equity ratio has increased from 83.8% to 103.4% over the past 5 years.

Debt Coverage: NSC's debt is well covered by operating cash flow (29.1%).

Interest Coverage: NSC's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet


Dividend

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

1.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NSC's dividend (1.51%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: NSC's dividend (1.51%) is low compared to the top 25% of dividend payers in the US market (3.44%).


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 (34.4%), 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 (34.7% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Transportation industry.

Management

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

2.2yrs

Average management tenure


CEO

Jim Squires (60 yo)

6.58yrs

Tenure

US$14,125,279

Compensation

Mr. James A. Squires, also known as Jim, has been the Chief Executive Officer of Norfolk Southern Corporation since June 1, 2015, and has been its Chairman since October 1, 2015. Mr. Squires served as Exec...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD14.13M) is about average for companies of similar size in the US market ($USD11.18M).

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


Leadership Team

Experienced Management: NSC's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: NSC's board of directors are considered experienced (6.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 employee growth, exchange listings and data sources


Key Information

  • Name: Norfolk Southern Corporation
  • Ticker: NSC
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Railroads
  • Sector: Transportation
  • Implied Market Cap: US$70.151b
  • Shares outstanding: 243.34m
  • Website: https://www.norfolksouthern.com

Number of Employees


Location

  • Norfolk Southern Corporation
  • 650 West Peachtree Street NW
  • Atlanta
  • Georgia
  • 30308-1925
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 23:30
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.