Norfolk Southern Corp

Find Ratings Reports
NSC : NYSE : Services
$110.55 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 2144200.0
03/23/17 - 4:02 PM ET

Financial Analysis


NORFOLK SOUTHERN CORP's gross profit margin for the fourth quarter of its fiscal year 2016 has increased 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 0.81 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 1.81% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)2490.02518.0
EBITDA ($mil)1020.0944.0
EBIT ($mil)761.0692.0
Net Income ($mil)416.0361.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)956.01101.0
Total Assets ($mil)34892.034260.0
Total Debt ($mil)10492.010373.0
Equity ($mil)12409.012188.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin40.9637.49
EBITDA Margin40.9637.49
Operating Margin30.5627.48
Sales Turnover0.280.31
Return on Assets4.784.54
Return on Equity13.4412.76
Debt Q4 FY16 Q4 FY15
Current Ratio0.981.18
Debt/Capital0.460.46
Interest Expense142.0142.0
Interest Coverage5.364.87


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)290.42297.8
Div / share0.590.59
EPS1.421.2
Book value / share42.7340.93
Institutional Own % n/a n/a
Avg Daily Volume2021937.01821992.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 20.69 for the Road & Rail industry and a discount compared to the S&P 500 average of 26.73. To use another comparison, its price-to-book ratio of 2.70 indicates valuation on par with the S&P 500 average of 2.98 and a discount versus the industry average of 3.92. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NSC 20.52 Peers 20.69   NSC 11.04 Peers 11.17

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NSC 16.84 Peers 22.15   NSC 2.18 Peers 2.17

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NSC 2.70 Peers 3.92   NSC 10.19 Peers 0.20

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NSC 3.39 Peers 3.63   NSC -5.93 Peers -5.21

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

 

 

Latest Stock Upgrades/Downgrades