0.19 | 0.25%
NORFOLK SOUTHERN CORP's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. NORFOLK SOUTHERN CORP has weak liquidity. Currently, the Quick Ratio is 0.97 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.00% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 2738.0 | 2789.0 |
| EBITDA ($mil) | 918.0 | 969.0 |
| EBIT ($mil) | 691.0 | 745.0 |
| Net Income ($mil) | 450.0 | 410.0 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 687.0 | 831.0 |
| Total Assets ($mil) | 30599.0 | 29375.0 |
| Total Debt ($mil) | 8618.0 | 8017.0 |
| Equity ($mil) | 10110.0 | 9815.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 33.53 | 34.74 |
| EBITDA Margin | 33.52 | 34.74 |
| Operating Margin | 25.24 | 26.71 |
| Sales Turnover | 0.36 | 0.39 |
| Return on Assets | 5.84 | 6.81 |
| Return on Equity | 17.69 | 20.38 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.22 | 1.21 |
| Debt/Capital | 0.46 | 0.45 |
| Interest Expense | 129.0 | 120.0 |
| Interest Coverage | 5.36 | 6.21 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 315.09 | 325.76 |
| Div / share | 0.5 | 0.47 |
| EPS | 1.41 | 1.23 |
| Book value / share | 32.09 | 30.13 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2063686.0 | 2622052.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 21.96 for the Road & Rail industry and a discount compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 2.47 indicates valuation on par with the S&P 500 average of 2.44 and a discount versus the industry average of 3.81. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, NORFOLK SOUTHERN CORP proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NSC 14.29 | Peers 21.96 | NSC 8.94 | Peers 11.74 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. NSC is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. NSC is trading at a discount to its peers. |
|||||||||||||||||||||||
| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| NSC 12.43 | Peers 17.20 | NSC 3.34 | Peers 2.45 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. NSC is trading at a discount to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. NSC trades at a significant premium to its peers. |
|||||||||||||||||||||||
| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| NSC 2.47 | Peers 3.81 | NSC -4.32 | Peers 12.76 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. NSC is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, NSC is expected to significantly trail its peers on the basis of its earnings growth rate. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| NSC 2.27 | Peers 3.10 | NSC -3.11 | Peers 5.26 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. NSC is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. NSC significantly trails its peers on the basis of sales growth |
|||||||||||||||||||||||
