Norfolk Southern Corp

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NSC : NYSE : Services
$130.99 up 0.28 | 0.21%
Today's Range: 129.86 - 131.15
Avg. Daily Volume: 1569900.0
09/22/17 - 4:02 PM ET

Financial Analysis

NORFOLK SOUTHERN CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. NORFOLK SOUTHERN CORP has weak liquidity. Currently, the Quick Ratio is 0.67 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 3.16% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)2637.02454.0
EBITDA ($mil)1152.01027.0
EBIT ($mil)888.0770.0
Net Income ($mil)497.0405.0

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)642.0866.0
Total Assets ($mil)34922.034334.0
Total Debt ($mil)9873.010099.0
Equity ($mil)12662.012273.0

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin43.6941.85
EBITDA Margin43.6841.85
Operating Margin33.6731.38
Sales Turnover0.290.29
Return on Assets5.174.67
Return on Equity14.2613.07
Debt Q2 FY17 Q2 FY16
Current Ratio0.831.06
Interest Expense140.0138.0
Interest Coverage6.345.58

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)288.18293.55
Div / share0.610.59
Book value / share43.9441.81
Institutional Own % n/a n/a
Avg Daily Volume1582735.01849997.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 21.81 for the Road & Rail industry and a discount compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 2.89 indicates valuation on par with the S&P 500 average of 3.10 and a discount versus the industry average of 4.16. The current price-to-sales ratio is well above the S&P 500 average, but 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NSC 20.61 Peers 21.81   NSC 11.50 Peers 12.01

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

NSC is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
NSC 18.13 Peers 23.08   NSC 1.70 Peers 7.44

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NSC 2.89 Peers 4.16   NSC 15.35 Peers -0.29

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.


Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

NSC is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NSC 3.58 Peers 3.74   NSC 1.19 Peers 2.79

Average. 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 valuation on par with 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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