1.47%
-3.74%
-9.90%
-3.46%
-5.18%
-8.72%
34.59%
AI Spotlight on NSC
Create a Free
Company Description
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 agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, scrap paper, beverages, canned goods, and consumer products; chemicals consist of sulfur and related chemicals, petroleum products, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, and sand; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal.It also transports overseas freight through various Atlantic and Gulf Coast ports; and provides commuter rail passenger transportation services and operates an intermodal network.
As of December 31, 2021, the company operated approximately 19,300 route miles in 22 states and the District of Columbia.Norfolk Southern Corporation was incorporated in 1980 and is based in Atlanta, Georgia.
Market Data
| Last Price | 245.75 |
| Change Percentage | 1.47% |
| Open | 244.16 |
| Previous Close | 242.18 |
| Market Cap ( Millions) | 55646 |
| Volume | 630428 |
| Year High | 277.6 |
| Year Low | 206.71 |
| M A 50 | 245.61 |
| M A 200 | 243.35 |
Financial Ratios
| FCF Yield | 0.05% |
| Dividend Yield | 2.20% |
| ROE | 20.76% |
| Debt / Equity | 122.17% |
| Net Debt / EBIDTA | 287.27% |
| Price To Book | 3.89 |
| Price Earnings Ratio | 19.98 |
| Price To FCF | 1987.36 |
| Price To sales | 4.59 |
| EV / EBITDA | 12.97 |
News
- Feb -27 - Norfolk Southern: An Undervalued Dividend Stock To Buy Now
- Feb -25 - 2 Dividend Paying Stocks From the Railroad Industry You Should Count On
- Feb -20 - The Dividend Strategy That Could Make Me A Millionaire - And How You Can Copy It
- Feb -18 - Norfolk Southern: From Setback To Comeback
- Feb -14 - All-In: The 23-Stock Six-Figure Dividend Portfolio I'm Betting My Future On
- Feb -13 - Norfolk Southern to present at Barclays 42nd Annual Industrial Select Conference
- Feb -10 - Where I'd Put $10,000 Right Now - My Best Dividend Picks For Income And Growth
- Feb -07 - The Next Big Opportunity: My Favorite Dividend Stocks For The Shift Ahead
- Feb -03 - FDX, Norfolk Southern, CSX Canadian Pacific downgraded on tariff woes
- Feb -02 - 2 Undervalued Dividend Stocks Ready For A Major Comeback
- Jan -30 - Norfolk Southern Posts Q4 Beat, Analysts Expect Continued Productivity Gains
- Jan -29 - Tariffs are an uncertainty but not a worry, railroad operator Norfolk Southern says
- Jan -29 - Watch CNBC's full interview with Norfolk Southern CEO Mark George
- Jan -29 - Norfolk Southern Tops EPS Forecast
- Jan -29 - Norfolk Southern Q4 Earnings Surpass Estimates, Revenues Lag
- Jan -29 - Norfolk Southern Corporation (NSC) Q4 2024 Earnings Call Transcript
- Jan -29 - Norfolk Southern (NSC) Reports Q4 Earnings: What Key Metrics Have to Say
- Jan -29 - Norfolk Southern beats profit estimates helped by cost cuts, insurance recovery
- Jan -29 - Norfolk Southern (NSC) Q4 Earnings Beat Estimates
- Jan -29 - Norfolk Southern reports fourth quarter and full year 2024 results
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Intermodal
Expected Growth : 4.5 %
What the company do ?
Intermodal from Norfolk Southern Corporation refers to the transportation of goods in shipping containers that can be easily transferred between ships, trains, and trucks, increasing efficiency and reducing transit times.
Why we expect these perspectives ?
Norfolk Southern's Intermodal segment growth of 4.5% is driven by increasing demand for efficient and environmentally friendly transportation, investments in network expansion and technology, and growing e-commerce activity. Additionally, the company's strategic partnerships and competitive pricing strategies have contributed to the segment's growth.
Segment n°2 -> Agriculture, Forest and Consumer Products
Expected Growth : 4.2 %
What the company do ?
Agriculture, Forest and Consumer Products from Norfolk Southern Corporation involves transportation of goods like grains, fertilizers, and lumber, serving industries like food processing and construction.
Why we expect these perspectives ?
Agriculture, Forest, and Consumer Products segment growth of 4.2% is driven by increased grain exports, higher lumber demand, and strong consumer spending on food and beverages. Additionally, favorable weather conditions, government subsidies, and growing demand for sustainable forestry products contribute to the segment's growth.
Segment n°3 -> Chemicals
Expected Growth : 4.8 %
What the company do ?
Norfolk Southern Corporation's chemicals segment transports chemicals, plastics, and other hazardous materials, accounting for approximately 20% of the company's total revenue.
Why we expect these perspectives ?
The 4.8% growth in Chemicals from Norfolk Southern Corporation is driven by increasing demand for petrochemicals, growth in the manufacturing sector, and rising exports. Additionally, investments in infrastructure and capacity expansion by chemical companies, as well as a favorable regulatory environment, contribute to the segment's growth.
Segment n°4 -> Coal
Expected Growth : 3.8 %
What the company do ?
Coal from Norfolk Southern Corporation refers to the transportation of coal, a fossil fuel, by the railroad company, playing a crucial role in the US energy market.
Why we expect these perspectives ?
The 3.8% growth in coal from Norfolk Southern Corporation is driven by increasing demand from utilities, particularly in the Midwest and Eastern US, as well as rising natural gas prices, which make coal a more competitive option. Additionally, NSC's strategic investments in its coal network and operational efficiencies have improved productivity and reduced costs.
Segment n°5 -> Metals and Construction
Expected Growth : 4.0 %
What the company do ?
Metals and Construction from Norfolk Southern Corporation refers to the transportation of metals, construction materials, and equipment, serving industries such as steel, lumber, and cement.
Why we expect these perspectives ?
The 4.0% growth in Metals and Construction from Norfolk Southern Corporation is driven by increasing demand for steel and construction materials, supported by government infrastructure investments and a rebound in industrial production. Additionally, rising commodity prices and a strong housing market contribute to the segment's growth.
Segment n°6 -> Automotive
Expected Growth : 4.6 %
What the company do ?
The Automotive segment of Norfolk Southern Corporation provides rail transportation services for finished vehicles and auto parts, serving major automotive manufacturers and distributors.
Why we expect these perspectives ?
The 4.6% growth in Automotive segment of Norfolk Southern Corporation is driven by increasing demand for electric vehicles, rising consumer spending, and growth in international trade. Additionally, the company's investments in digitalization and operational efficiency have improved its ability to handle high volumes of auto shipments, further contributing to the segment's growth.
Norfolk Southern Corporation Products
| Product Range | What is it ? |
|---|---|
| Intermodal | Norfolk Southern's intermodal service provides door-to-door transportation of goods in containers that can be easily transferred between ships, trains, and trucks. |
| Coal | Norfolk Southern provides transportation services for coal, a vital source of energy for power generation and industrial processes. |
| Automotive | Norfolk Southern offers specialized rail services for the automotive industry, including transportation of finished vehicles and auto parts. |
| Chemicals | Norfolk Southern provides safe and reliable transportation of hazardous and non-hazardous chemicals, including fuels, plastics, and other industrial chemicals. |
| Metals and Construction | Norfolk Southern offers transportation services for metals, including steel, aluminum, and copper, as well as construction materials like lumber and cement. |
| Agricultural Products | Norfolk Southern provides transportation services for agricultural products, including grains, soybeans, and fertilizers. |
| Forest Products | Norfolk Southern offers transportation services for forest products, including lumber, paper, and wood pulp. |
Norfolk Southern Corporation's Porter Forces
Threat Of Substitutes
The threat of substitutes for Norfolk Southern Corporation is medium due to the availability of alternative modes of transportation such as trucks and airplanes. However, the high cost of switching to these alternatives and the lack of a comprehensive network limit the threat.
Bargaining Power Of Customers
The bargaining power of customers is low due to the lack of concentration in the industry. Norfolk Southern Corporation has a diverse customer base, which reduces the bargaining power of individual customers.
Bargaining Power Of Suppliers
The bargaining power of suppliers is medium due to the presence of a few large suppliers of fuel and equipment. However, Norfolk Southern Corporation's large scale of operations and diversified supplier base mitigate the bargaining power of suppliers.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the railroad industry. The high capital requirements, regulatory hurdles, and complexity of building a railroad network make it difficult for new entrants to enter the market.
Intensity Of Rivalry
The intensity of rivalry is high due to the presence of a few large players in the industry. Norfolk Southern Corporation competes with other major railroads such as Union Pacific and CSX, which leads to intense competition for market share and customers.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 57.89% |
| Debt Cost | 5.22% |
| Equity Weight | 42.11% |
| Equity Cost | 10.44% |
| WACC | 7.42% |
| Leverage | 137.48% |
Norfolk Southern Corporation : Quality Control
Norfolk Southern Corporation passed 1 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| CMI | Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, … |
| PAYX | Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It … |
| WAB | Westinghouse Air Brake Technologies Corporation provides technology-based equipment, systems, and services for the freight rail and passenger transit industries worldwide. It operates through two segments, Freight and Transit. The Freight … |
| CAT | Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold … |
| UNP | Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇
Paychex
A-Score
1-Year Total Return ->
🥈
Cummins
A-Score
1-Year Total Return ->
🥉
Caterpillar
A-Score
1-Year Total Return ->
4
Wabtec
A-Score
1-Year Total Return ->
5
Union Pacific
A-Score
1-Year Total Return ->
6
