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Norfolk Southern Corp NSC

Morningstar Rating
$239.57 −1.12 (0.47%)
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Company Report

Norfolk Southern Earnings: Intermodal Volume Improving, but Margin Pressure Lingers

Eastern Class-I railroad Norfolk Southern’s first-quarter revenue fell 4% year over year on easing storage income, lower fuel surcharges, unfavorable mix, lower benchmark coal pricing, and elevated truckload sector competition for intermodal. On the other hand, consolidated volume growth accelerated and merchandize carload core-pricing remains healthy—similar to peer CSX. Revenue mostly met our expectations, though intermodal pricing deteriorated more than we anticipated on truck competition.

Price vs Fair Value

NSC is trading at a 5% premium.
Price
$245.03
Fair Value
$561.00
Uncertainty
Medium
1-Star Price
$412.15
5-Star Price
$663.60
Economic Moat
Rqxr
Capital Allocation
Ksclwqrp

Bulls Say, Bears Say

Bulls

Derailment issues aside, network service levels have improved off a lackluster performance in 2021 and much of 2022 thanks to progress hiring train and engine personnel.

Bears

Insurance coverage should mitigate some of the risk, but the 2023 East Palestine derailment could still yield significant liabilities in terms of fines, and lawsuits.

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News

Trading Information

Previous Close Price
$240.69
Day Range
$238.11242.55
52-Week Range
$183.77263.65
Bid/Ask
$239.44 / $239.66
Market Cap
$54.11 Bil
Volume/Avg
521,944 / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
22.38
Price/Sales
4.54
Dividend Yield (Trailing)
2.24%
Dividend Yield (Forward)
2.24%
Total Yield
3.13%

Company Profile

Class-I railroad Norfolk Southern operates in the Eastern United States. On more than 20,000 miles of track, the rail hauls shipments of coal, intermodal traffic, and a diverse mix of automobile, agriculture, metal, chemical, and forest products.
Sector
Industrials
Industry
Railroads
Stock Style Box
Large Value
Total Number of Employees
20,700

Competitors

Valuation

Metric
NSC
UNP
CSX
Price/Earnings (Normalized)
22.3823.3118.81
Price/Book Value
4.349.495.28
Price/Sales
4.546.164.63
Price/Cash Flow
22.7517.5512.65
Price/Earnings
NSC
UNP
CSX

Financial Strength

Metric
NSC
UNP
CSX
Quick Ratio
0.540.690.88
Current Ratio
0.680.931.05
Interest Coverage
3.357.166.95
Quick Ratio
NSC
UNP
CSX

Profitability

Metric
NSC
UNP
CSX
Return on Assets (Normalized)
6.44%9.60%8.83%
Return on Equity (Normalized)
20.65%45.57%30.10%
Return on Invested Capital (Normalized)
11.08%15.23%13.72%
Return on Assets
NSC
UNP
CSX
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Capital Allocation
Economic Moat
Market Cap
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CNI
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CP
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CSX
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WAB
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CJPRF
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CJPRY
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EJPRF
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EJPRY
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