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Norfolk Southern Corp
NSC : NYSE : Services
$106.84 -0.77 | -0.72%
Today's Range: 106.05 - 108.84
Avg. Daily Volume: 1,362,400
07/23/14 - 4:02 PM ET

Financial Analysis


NORFOLK SOUTHERN CORP's gross profit margin for the first quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. NORFOLK SOUTHERN CORP has average liquidity. Currently, the Quick Ratio is 1.14 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 15.65% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY14 Q1 FY13
Net Sales ($mil)2689.02738.0
EBITDA ($mil)904.0918.0
EBIT ($mil)667.0691.0
Net Income ($mil)368.0450.0


Balance Sheet Q1 FY14 Q1 FY13
Cash & Equiv. ($mil)1532.0687.0
Total Assets ($mil)32700.030599.0
Total Debt ($mil)9354.08618.0
Equity ($mil)11693.010110.0


Profitability Q1 FY14 Q1 FY13
Gross Profit Margin33.6233.53
EBITDA Margin33.6133.52
Operating Margin24.825.24
Sales Turnover0.340.36
Return on Assets5.595.84
Return on Equity15.6317.69
Debt Q1 FY14 Q1 FY13
Current Ratio1.351.22
Debt/Capital0.440.46
Interest Expense139.0129.0
Interest Coverage4.85.36


Share Data Q1 FY14 Q1 FY13
Shares outstanding (mil)309.65315.09
Div / share0.540.5
EPS1.171.41
Book value / share37.7632.09
Institutional Own % n/a n/a
Avg Daily Volume1364296.02305080.0

Valuation


BUY. NORFOLK SOUTHERN CORP's P/E ratio indicates a discount compared to an average of 25.01 for the Road & Rail industry and a value on par with the S&P 500 average of 19.42. To use another comparison, its price-to-book ratio of 2.76 indicates valuation on par with the S&P 500 average of 2.68 and a discount versus the industry average of 4.12. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NSC 18.00 Peers 25.01   NSC 10.91 Peers 12.47

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
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NSC 14.40 Peers 18.54   NSC 3.44 Peers 4.94

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.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NSC 2.76 Peers 4.12   NSC 4.50 Peers 15.97

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
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NSC 2.89 Peers 3.55   NSC 1.88 Peers 7.27

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 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

 

 

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