(NSC) Norfolk Southern - Overview
Sector: Industrials | Industry: Railroads | Exchange: NYSE (USA) | Market Cap: 71.888m USD | Total Return: 33.7% in 12m
Avg Turnover: 295M
EPS Trend: 29.9%
Qual. Beats: 0
Rev. Trend: -41.1%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Norfolk Southern Corporation (NSC) operates a major freight rail network in the Eastern United States, transporting raw materials, intermediate goods, and finished products. Its freight mix includes agricultural commodities, chemicals, metals, construction materials, automotive units, and coal. The company maintains an extensive intermodal network and provides access to international markets through Atlantic and Gulf Coast port facilities.
As a Class I railroad, Norfolk Southern functions within a capital-intensive industry characterized by high barriers to entry and significant regulatory oversight. The business model relies on high operating leverage, where incremental volume growth often leads to improved margins due to the fixed nature of track infrastructure and locomotive fleet costs.
Investors can further examine the companys operational efficiency and valuation metrics on ValueRay.
- Operating ratio improvements drive margin expansion and investor confidence
- Intermodal volume growth correlates with consumer spending and port activity
- Federal safety regulations and litigation costs impact long-term capital allocation
- Industrial production levels dictate demand for bulk commodities and chemicals
- Coal export demand fluctuates based on global energy price volatility
| Net Income: 2.67b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 4.16 > 1.0 |
| NWC/Revenue: -2.55% < 20% (prev -6.18%; Δ 3.63% < -1%) |
| CFO/TA 0.08 > 3% & CFO 3.75b > Net Income 2.67b |
| Net Debt (16.0b) to EBITDA (5.52b): 2.89 < 3 |
| Current Ratio: 0.91 > 1.5 & < 3 |
| Outstanding Shares: last quarter (225.1m) vs 12m ago -0.62% < -2% |
| Gross Margin: 45.31% > 18% (prev 0.36%; Δ 4.49k% > 0.5%) |
| Asset Turnover: 27.41% > 50% (prev 27.65%; Δ -0.24% > 0%) |
| Interest Coverage Ratio: 5.22 > 6 (EBITDA TTM 5.52b / Interest Expense TTM 790.0m) |
| A: -0.01 (Total Current Assets 3.02b - Total Current Liabilities 3.33b) / Total Assets 45.1b |
| B: 0.30 (Retained Earnings 13.5b / Total Assets 45.1b) |
| C: 0.09 (EBIT TTM 4.12b / Avg Total Assets 44.5b) |
| D: 0.46 (Book Value of Equity 13.5b / Total Liabilities 29.3b) |
| Altman-Z'' = 2.04 = BBB |
| DSRI: 0.91 (Receivables 1.12b/1.23b, Revenue 12.2b/12.1b) |
| GMI: 0.80 (GM 45.31% / 36.25%) |
| AQI: 1.04 (AQ_t 0.13 / AQ_t-1 0.12) |
| SGI: 1.01 (Revenue 12.2b / 12.1b) |
| TATA: -0.02 (NI 2.67b - CFO 3.75b) / TA 45.1b) |
| Beneish M = -3.28 (Cap -4..+1) = AA |
As of May 23, 2026, the stock is trading at USD 311.44 with a total of 618,750 shares traded.
Over the past week, the price has changed by -0.45%,
over one month by +5.89%,
over three months by +0.27% and
over the past year by +33.69%.
Norfolk Southern has received a consensus analysts rating of 3.85. Therefore, it is recommended to buy NSC.
- StrongBuy: 11
- Buy: 3
- Hold: 12
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 335.3 | 7.7% |
P/E Forward = 25.5102
P/S = 5.8997
P/B = 4.434
P/EG = 4.6423
Revenue TTM = 12.2b USD
EBIT TTM = 4.12b USD
EBITDA TTM = 5.52b USD
Long Term Debt = 16.5b USD (from longTermDebt, last quarter)
Short Term Debt = 609.0m USD (from shortTermDebt, last quarter)
Debt = 17.3b USD (from shortLongTermDebtTotal, last quarter) + Leases 218.0m
Net Debt = 16.0b USD (calculated: Debt 17.3b - CCE 1.34b)
Enterprise Value = 87.9b USD (71.9b + Debt 17.3b - CCE 1.34b)
Interest Coverage Ratio = 5.22 (Ebit TTM 4.12b / Interest Expense TTM 790.0m)
EV/FCF = 22.99x (Enterprise Value 87.9b / FCF TTM 3.82b)
FCF Yield = 4.35% (FCF TTM 3.82b / Enterprise Value 87.9b)
FCF Margin = 31.37% (FCF TTM 3.82b / Revenue TTM 12.2b)
Net Margin = 21.91% (Net Income TTM 2.67b / Revenue TTM 12.2b)
Gross Margin = 45.31% ((Revenue TTM 12.2b - Cost of Revenue TTM 6.66b) / Revenue TTM)
Gross Margin QoQ = 43.06% (prev 70.51%)
Tobins Q-Ratio = 1.95 (Enterprise Value 87.9b / Total Assets 45.1b)
Interest Expense / Debt = 4.56% (Interest Expense 790.0m / Debt 17.3b)
Taxrate = 23.50% (168.0m / 715.0m)
NOPAT = 3.15b (EBIT 4.12b * (1 - 23.50%))
Current Ratio = 0.91 (Total Current Assets 3.02b / Total Current Liabilities 3.33b)
Debt / Equity = 1.10 (Debt 17.3b / totalStockholderEquity, last quarter 15.8b)
Debt / EBITDA = 2.89 (Net Debt 16.0b / EBITDA 5.52b)
Debt / FCF = 4.18 (Net Debt 16.0b / FCF TTM 3.82b)
Total Stockholder Equity = 15.3b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.01% (Net Income 2.67b / Total Assets 45.1b)
RoE = 17.43% (Net Income TTM 2.67b / Total Stockholder Equity 15.3b)
RoCE = 12.96% (EBIT 4.12b / Capital Employed (Equity 15.3b + L.T.Debt 16.5b))
RoIC = 7.45% (NOPAT 3.15b / Invested Capital 42.3b)
WACC = 7.39% (E(71.9b)/V(89.2b) * Re(8.33%) + D(17.3b)/V(89.2b) * Rd(4.56%) * (1-Tc(0.23)))
Discount Rate = 8.33% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -25.61 | Cagr: -0.24%
[DCF] Terminal Value 77.97% ; FCFF base≈3.05b ; Y1≈3.49b ; Y5≈5.14b
[DCF] Fair Price = 273.5 (EV 77.4b - Net Debt 16.0b = Equity 61.4b / Shares 224.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 29.87 | EPS CAGR: 1.59% | SUE: -0.29 | # QB: 0
Revenue Correlation: -41.06 | Revenue CAGR: -0.62% | SUE: 0.03 | # QB: 0
EPS current Quarter (2026-06-30): EPS=3.15 | Chg30d=+0.30% | Revisions=-11% | Analysts=18
EPS next Quarter (2026-09-30): EPS=3.29 | Chg30d=+0.24% | Revisions=+0% | Analysts=17
EPS current Year (2026-12-31): EPS=12.14 | Chg30d=+0.85% | Revisions=+25% | GrowthEPS=-2.8% | GrowthRev=+4.2%
EPS next Year (2027-12-31): EPS=13.52 | Chg30d=+0.72% | Revisions=+18% | GrowthEPS=+11.4% | GrowthRev=+4.4%
[Analyst] Revisions Ratio: +25%