NORFOLK SOUTHERN CORP's gross profit margin for the first quarter of its fiscal year 2015 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 weak liquidity. Currently, the Quick Ratio is 0.74 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.97% 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.
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|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||2567.0||2689.0|
|Net Income ($mil)||310.0||368.0|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||524.0||1532.0|
|Total Assets ($mil)||32775.0||32700.0|
|Total Debt ($mil)||9210.0||9487.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||33.15||33.62|
|Return on Assets||5.92||5.59|
|Return on Equity||15.97||15.63|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||304.85||309.65|
|Div / share||0.59||0.54|
|Book value / share||39.88||37.76|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2228260.0||2230519.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 19.45 for the Road & Rail industry and a discount compared to the S&P 500 average of 20.38. To use another comparison, its price-to-book ratio of 2.53 indicates valuation on par with the S&P 500 average of 2.81 and a significant discount versus the industry average of 4.08. 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.
|NSC 16.21||Peers 19.45||NSC 10.80||Peers 10.86|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
NSC is trading at a discount to its peers.
Average. 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 valuation on par to its peers.
|NSC 14.51||Peers 21.59||NSC NM||Peers 1.77|
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.
Neutral. 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's negative PEG ratio makes this valuation measure meaningless.
|NSC 2.53||Peers 4.08||NSC 7.24||Peers 80.65|
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.
|NSC 2.67||Peers 3.25||NSC 2.73||Peers 9.09|
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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