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Norfolk Southern

NYSE:NSC
Snowflake Description

Established dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NSC
NYSE
$51B
Market Cap
  1. Home
  2. US
  3. Transportation
Company description

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 55 days ago. More info.


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NSC Share Price and Events
7 Day Returns
-2.8%
NYSE:NSC
-1.6%
US Transportation
0.1%
US Market
1 Year Returns
28.2%
NYSE:NSC
5.9%
US Transportation
1.2%
US Market
NSC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Norfolk Southern (NSC) -2.8% -5% 8.5% 28.2% 127.6% 89.4%
US Transportation -1.6% -2.1% 2.2% 5.9% 78.7% 65%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • NSC outperformed the Transportation industry which returned 5.9% over the past year.
  • NSC outperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
NSC
Industry
5yr Volatility vs Market

NSC Value

 Is Norfolk Southern undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Norfolk Southern.

NYSE:NSC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:NSC
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 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.986 (1 + (1- 21%) (23.86%))
1.115
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.115 * 5.96%)
9.38%

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.

NYSE:NSC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.38%)
2019 2,232.00 Analyst x10 2,040.68
2020 2,483.50 Analyst x10 2,075.99
2021 2,637.40 Analyst x5 2,015.66
2022 2,602.00 Analyst x1 1,818.14
2023 2,739.00 Analyst x1 1,749.82
2024 2,815.06 Est @ 2.78% 1,644.25
2025 2,892.84 Est @ 2.76% 1,544.85
2026 2,972.48 Est @ 2.75% 1,451.31
2027 3,054.11 Est @ 2.75% 1,363.34
2028 3,137.83 Est @ 2.74% 1,280.65
Present value of next 10 years cash flows $16,984.68
NYSE:NSC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $3,137.83 × (1 + 2.73%) ÷ (9.38% – 2.73%)
$48,506.69
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $48,506.69 ÷ (1 + 9.38%)10
$19,797.15
NYSE:NSC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $16,984.68 + $19,797.15
$36,781.83
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $36,781.83 / 265.97
$138.29
NYSE:NSC Discount to Share Price
Calculation Result
Value per share (USD) From above. $138.29
Current discount Discount to share price of $193.44
= -1 x ($193.44 - $138.29) / $138.29
-39.9%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:NSC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $10.18
NYSE:NSC Share Price ** NYSE (2019-06-18) in USD $193.44
United States of America Transportation Industry PE Ratio Median Figure of 25 Publicly-Listed Transportation Companies 17.04x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Norfolk Southern.

NYSE:NSC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:NSC Share Price ÷ EPS (both in USD)

= 193.44 ÷ 10.18

19x

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?
Raw Data
NYSE:NSC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
7.6%per year
United States of America Transportation Industry PEG Ratio Median Figure of 23 Publicly-Listed Transportation Companies 2x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:NSC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19x ÷ 7.6%

2.49x

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?
Raw Data
NYSE:NSC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $57.64
NYSE:NSC Share Price * NYSE (2019-06-18) in USD $193.44
United States of America Transportation Industry PB Ratio Median Figure of 28 Publicly-Listed Transportation Companies 1.61x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:NSC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:NSC Share Price ÷ Book Value per Share (both in USD)

= 193.44 ÷ 57.64

3.36x

* 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.
X
Value checks
We assess Norfolk Southern's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Transportation industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Transportation industry average (and greater than 0)? (1 check)
  5. 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

 How is Norfolk Southern expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

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!
Annual Growth Rate
7.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Norfolk Southern expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:NSC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:NSC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 7.6%
NYSE:NSC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 3.6%
United States of America Transportation Industry Earnings Growth Rate Market Cap Weighted Average 11.9%
United States of America Transportation Industry Revenue Growth Rate Market Cap Weighted Average 8.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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
Raw Data
NYSE:NSC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:NSC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 13,745 5,091 3,824 2
2022-12-31 13,215 4,853 3,608 2
2021-12-31 12,861 4,816 3,480 13
2020-12-31 12,443 4,488 3,193 21
2019-12-31 11,925 4,171 2,920 21
NYSE:NSC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 11,581 3,791 2,785
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Norfolk Southern's earnings are expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
  • Norfolk Southern's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:NSC 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 21 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.

NYSE:NSC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 17.08 17.08 17.08 1.00
2022-12-31 15.47 15.47 15.47 1.00
2021-12-31 14.35 15.25 13.46 11.00
2020-12-31 12.50 13.25 11.95 19.00
2019-12-31 11.01 11.46 10.66 19.00
NYSE:NSC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 10.18
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

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Norfolk Southern is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Norfolk Southern's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Norfolk Southern's growth in the last year to its industry (Transportation).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Norfolk Southern's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Norfolk Southern Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NSC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 11,581.00 2,785.00
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

*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).
X
Past performance checks
We assess Norfolk Southern's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Transportation industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Norfolk Southern's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Norfolk Southern Company Filings, last reported 2 months ago.

NYSE:NSC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 15,331.00 12,277.00 411.00
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
  • Norfolk Southern's level of debt (76.2%) 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 (81.1% vs 76.2% today).
  • Debt is well covered by operating cash flow (32.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).
X
Financial health checks
We assess Norfolk Southern's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Norfolk Southern has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
1.78%
Current annual income from Norfolk Southern dividends. Estimated to be 1.9% next year.
If you bought $2,000 of Norfolk Southern shares you are expected to receive $36 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Norfolk Southern's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Norfolk Southern's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
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.
Raw Data
NYSE:NSC Annualized Past and Future Dividends
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 21 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 2011 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 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:NSC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 3.64 1.00
2022-12-31 3.59 1.00
2021-12-31 4.03 9.00
2020-12-31 3.74 14.00
2019-12-31 3.42 15.00
NYSE:NSC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-23 3.440 1.715
2019-01-23 3.440 1.899
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

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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
X
Income/ dividend checks
We assess Norfolk Southern's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Norfolk Southern's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Squires
COMPENSATION $14,271,985
AGE 57
TENURE AS CEO 4 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 been consistent with company performance over the past year, both up more than 20%.
  • 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:

2.3
Average Tenure
55
Average Age
  • The tenure for the Norfolk Southern management team is about average.
Management Team

Jim Squires

TITLE
Chairman
COMPENSATION
$14M
AGE
57
TENURE
4 yrs

Cindy Earhart

TITLE
Executive VP of Finance & CFO
COMPENSATION
$5M
AGE
56
TENURE
1.8 yrs

Mike Wheeler

TITLE
Executive VP & COO
COMPENSATION
$5M
AGE
55
TENURE
3.3 yrs

Alan Shaw

TITLE
Executive VP & Chief Marketing Officer
COMPENSATION
$4M
AGE
50
TENURE
4.1 yrs

John Scheib

TITLE
Executive VP & Chief Strategy Officer
COMPENSATION
$3M
AGE
46
TENURE
0.2 yrs

Fred Ehlers

TITLE
VP of Information Technology & Chief Information Officer
TENURE
1.7 yrs

Peter Sharbel

TITLE
Director of Investor Relations

Susan Stuart

TITLE
Vice President of Audit & Compliance
TENURE
2.3 yrs

Vanessa Sutherland

TITLE
Senior Vice President of Law & Chief Legal Officer
TENURE
0.2 yrs

Tom Werner

TITLE
VP of Corporate Communications & Chief Sustainability Officer
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Norfolk Southern board of directors in years:

5.8
Average Tenure
66
Average Age
  • The tenure for the Norfolk Southern board of directors is about average.
Board of Directors

Jim Squires

TITLE
Chairman
COMPENSATION
$14M
AGE
57
TENURE
3.7 yrs

Steve Leer

TITLE
Lead Independent Director
COMPENSATION
$310K
AGE
65
TENURE
6.1 yrs

Dan Carp

TITLE
Independent Director
COMPENSATION
$277K
AGE
70
TENURE
13.4 yrs

Tom Bell

TITLE
Independent Director
COMPENSATION
$282K
AGE
68
TENURE
9.4 yrs

Amy Miles

TITLE
Independent Director
COMPENSATION
$279K
AGE
51
TENURE
5.4 yrs

Michael Lockhart

TITLE
Independent Director
COMPENSATION
$267K
AGE
69
TENURE
10.8 yrs

John Thompson

TITLE
Independent Director
COMPENSATION
$242K
AGE
67
TENURE
6.3 yrs

Mitch Daniels

TITLE
Independent Director
COMPENSATION
$252K
AGE
69
TENURE
2.6 yrs

Marcela Donadio

TITLE
Independent Director
COMPENSATION
$245K
AGE
63
TENURE
2.6 yrs

Jenny Scanlon

TITLE
Independent Director
COMPENSATION
$247K
AGE
51
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • Norfolk Southern insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
23. May 19 Sell James Squires Individual 21. May 19 21. May 19 -3,024 $204.80 $-619,051
06. May 19 Sell Michael Wheeler Individual 03. May 19 03. May 19 -2,500 $204.57 $-511,420
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
X
Management checks
We assess Norfolk Southern's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Are Insiders Selling Norfolk Southern Corporation (NYSE:NSC) Stock?

So we'll take a look at whether insiders have been buying or selling shares in Norfolk Southern Corporation (NYSE:NSC). … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for Norfolk Southern Norfolk Southern Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Chairman, James Squires, for US$619k worth of shares, at about US$205 per share. … Insiders at Norfolk Southern Have Sold Stock Recently Over the last three months, we've seen significant insider selling at Norfolk Southern.

Simply Wall St -

The Norfolk Southern (NYSE:NSC) Share Price Is Up 141% And Shareholders Are Boasting About It

For instance the Norfolk Southern Corporation (NYSE:NSC) share price is 141% higher than it was three years ago. … Norfolk Southern was able to grow its EPS at 23% per year over three years, sending the share price higher. … As it happens, Norfolk Southern's TSR for the last 3 years was 157%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Don't Sell Norfolk Southern Corporation (NYSE:NSC) Before You Read This

Check out our latest analysis for Norfolk Southern How Do You Calculate Norfolk Southern's P/E Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Norfolk Southern: P/E of 19.42 = $197.67 ÷ $10.18 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … Norfolk Southern saw earnings per share decrease by 47% last year.

Simply Wall St -

Boasting A 18% Return On Equity, Is Norfolk Southern Corporation (NYSE:NSC) A Top Quality Stock?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Norfolk Southern: 18% = US$2.8b ÷ US$15b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Norfolk Southern Have A Good Return On Equity? … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Norfolk Southern Corporation (NYSE:NSC): 1 Days To Buy Before The Ex-Dividend Date

If you are interested in cashing in on Norfolk Southern Corporation's (NYSE:NSC) upcoming dividend of US$0.86 per share, you only have 1 days left to buy the shares before its ex-dividend date, 02 May 2019, in time for dividends payable on the 10 June 2019. … Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)? … Will the company be able to keep paying dividend based on the future earnings growth

Simply Wall St -

What Kind Of Investor Owns Most Of Norfolk Southern Corporation (NYSE:NSC)?

The big shareholder groups in Norfolk Southern Corporation (NYSE:NSC) have power over the company. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … With a market capitalization of US$51b, Norfolk Southern is rather large.

Simply Wall St -

Is Norfolk Southern Corporation (NYSE:NSC) Creating Value For Shareholders?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Is Norfolk Southern Corporation's (NYSE:NSC) Balance Sheet A Threat To Its Future?

The size of Norfolk Southern Corporation (NYSE:NSC), a US$48b large-cap, often attracts investors seeking a reliable investment in the stock market. … Today we will look at Norfolk Southern’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

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 -

How 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 -

NSC 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
$51,448,664,024
265,967,039
Website: http://www.norfolksouthern.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
Staff numbers
26,662
Norfolk Southern employees.
Industry
Railroads
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:41
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/04/24
Last earnings reported: 2019/03/31
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.