NSC Norfolk Southern Corporation - Fundamental Analysis
NEUTRAL
Sign in to save
Save this symbol to a watchlist or track a position.
NSC Stock | Fundamental Analysis & Investment Insights
NYSE
Industrials
Railroads
Current Price
Live
$290.63
Analyst Target
$310.63
+6.9%
Upside
52W High
$302.24
52W Low
$201.63
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$65.21B
P/E
22.17
ROE
20.5%
Profit margin
24.2%
Debt/Equity
1.16
Dividend yield
1.86%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
75%
Analysis Accuracy
Norfolk Southern's financial health is concerning with a weak Piotroski F-Score of 4/9, indicating marginal stability. Despite strong profitability metrics like a 36.58% operating margin and 20.48% ROE, earnings growth is sharply negative year-over-year (-34.90%), and the technical trend is bearish. The stock trades at a significant premium to both the Graham Number ($141.08) and intrinsic value ($91.77), supported by a high P/E of 22.17, though it remains in line with sector peers. Analysts consensus is a hold, and insider activity shows slight selling pressure, tempering near-term optimism.
Key Strengths
High operating margin of 36.58% reflects strong pricing power and cost control
Solid return on equity (20.48%) above sector average despite recent earnings decline
Dividend payout ratio of 41.19% is sustainable with a modest yield of 1.86%
Profit margin of 24.22% significantly exceeds sector average of 8.71%
Price/Sales ratio of 5.33 is lower than peer PWR (Quanta Services) at 63.69, suggesting relative value
Key Risks
Piotroski F-Score of 4/9 indicates weak financial health, particularly concerning given declining earnings
YoY earnings growth of -34.90% and Q/Q decline of -35.30% signal severe profitability deterioration
Current ratio of 0.86 and quick ratio of 0.71 suggest potential liquidity pressure
Debt/Equity of 1.16 is elevated, though below sector average of 1.54
Technical trend score of 10/100 indicates strong bearish momentum
AI Fair Value Estimate
Based on comprehensive analysis
$141.08
-51.5% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
48
Moderate
45
30
65
40
60
AI Verdict
Neutral with caution due to weak financial health and declining earnings despite solid profitability
Key drivers: Piotroski F-Score of 4/9, Negative earnings growth, High valuation multiples, Strong margins, Bearish technical trend
Confidence
75%
Value
45/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 22.17 is below sector average of 32.12
Watchpoints
- Stock trades at 2.06x Graham Number ($141.08)
- No PEG ratio due to negative growth
- Price significantly above intrinsic value of $91.77
Future
30/100
Ref Growth rates
Positives
- Analyst target price of $310.63 implies 6.9% upside
Watchpoints
- Revenue growth of only 1.70% YoY
- Earnings growth of -34.90% YoY
- Q/Q earnings down -35.30%
Past
65/100
Ref Historical trends
Positives
- Historically beat earnings estimates in 2 of last 4 quarters
- Long-term 5Y price return of +29.1% outpaces sector average
Watchpoints
- Recent quarters show declining EPS trend
- Mixed earnings surprises with several misses
Health
40/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- ROE of 20.48% indicates efficient use of equity
Watchpoints
- Piotroski F-Score of 4/9 indicates weak financial health
- Current ratio below 1.0 (0.86)
- Quick ratio of 0.71 indicates limited liquid assets
Dividend
60/100
Ref Yield, Payout
Positives
- Dividend yield of 1.86% is modest but stable
- Payout ratio of 41.19% is sustainable
Watchpoints
- Dividend strength score of 40/100 suggests limited growth potential
- No 5-year average yield data available
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$290.63
Analyst Target
$310.63
Upside/Downside
+6.9%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for NSC and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
NSC
Norfolk Southern Corporation
Primary
|
+29.1% | +21.3% | +20.1% | +6.1% | -1.3% | +1.2% |
|
RSG
Republic Services, Inc.
Peer
|
+120.4% | +68.9% | +1.2% | -14.9% | -5.1% | +2.0% |
|
CMI
Cummins Inc.
Peer
|
+125.6% | +98.6% | +29.8% | +39.8% | +9.3% | -2.3% |
|
PWR
Quanta Services, Inc.
Peer
|
+524.9% | +199.4% | +32.7% | +24.6% | -1.8% | -3.5% |
|
PCAR
PACCAR Inc
Peer
|
+145.8% | +100.3% | +13.8% | +32.1% | +10.1% | +2.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
22.17
Forward P/E
22.72
PEG Ratio
N/A
P/B Ratio
4.31
P/S Ratio
5.33
EV/Revenue
6.66
EV/EBITDA
14.34
Market Cap
$65.21B
Profitability
Profit margins and return metrics
Profit Margin
24.22%
Operating Margin
36.58%
Gross Margin
46.43%
ROE
20.48%
ROA
6.11%
Growth
Revenue and earnings growth rates
Revenue Growth
+1.7%
Earnings Growth
-34.9%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
-35.3%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.16
Moderate
Current Ratio
0.86
Weak
Quick Ratio
0.71
Poor
Cash/Share
$6.32
Quarterly Earnings History
EPS performance vs analyst estimates
2026-01-29
$N/A
2025-10-23
$3.3
+3.0% surprise
2025-07-29
$3.29
-0.5% surprise
2025-04-23
$2.69
+0.5% surprise
Industrials Sector Comparison
Comparing NSC against 122 companies in the Industrials sector
(6 bullish, 59 neutral, 57 bearish)
P/E Ratio
22.17
This Stock
vs
73.49
Sector Avg
-69.8%
(Discount)
Return on Equity (ROE)
20.48%
This Stock
vs
7.83%
Sector Avg
+161.5%
(Excellent)
Profit Margin
24.22%
This Stock
vs
57.85%
Sector Avg
-58.1%
(Weaker)
Debt to Equity
1.16
This Stock
vs
5.46
Sector Avg
-78.7%
(Less Debt)
Revenue Growth
1.7%
This Stock
vs
22.8%
Sector Avg
-92.5%
(Slower)
Current Ratio
0.86
This Stock
vs
2.64
Sector Avg
-67.3%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
NSC
Norfolk Southern Corporation
|
NEUTRAL | $65.21B | 22.17 | 20.5% | 24.2% | $290.63 | |
|
RSG
Republic Services, Inc.
|
NEUTRAL | $64.95B | 31.17 | 18.2% | 12.8% | $209.8 | |
|
CMI
Cummins Inc.
|
NEUTRAL | $64.53B | 23.98 | 22.8% | 7.9% | $462.61 | |
|
PWR
Quanta Services, Inc.
|
NEUTRAL | $64.02B | 63.69 | 13.4% | 3.7% | $429.3 | |
|
PCAR
PACCAR Inc
|
NEUTRAL | $63.74B | 23.8 | 14.2% | 9.1% | $121.36 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-05 | CLYBURN WILLIAM JR. | Director | Purchase | 204 | $60,137 |
| 2025-11-19 | BHATT ANIL | Chief Technology Officer | Sale | 900 | $253,442 |
| 2025-11-05 | FAHMY, SAMEH | Director | Purchase | 1,650 | $466,900 |
| 2025-10-27 | ANDERSON RICHARD H | Director | Purchase | 2,600 | $732,823 |
| 2025-10-24 | ZAMPI JASON ANDREW | Chief Financial Officer | Stock Award | 150 | - |
| 2025-10-24 | BHATT ANIL | Chief Technology Officer | Stock Award | 3,479 | - |
| 2025-09-12 | GEORGE MARK R. | Chief Executive Officer | Stock Award | 2,653 | - |
| 2025-08-01 | LAMPHERE GILBERT H | Director | Stock Award | 460 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
19 analysts
JP Morgan
2026-01-12
Neutral
Neutral
Citigroup
2026-01-08
Neutral
Neutral
Barclays
2025-12-16
Overweight
Overweight
Deutsche Bank
2025-12-11
Buy
Hold
TD Cowen
2025-10-24
Buy
Buy
Citigroup
2025-10-24
Neutral
Neutral
UBS
2025-10-24
Buy
Buy
RBC Capital
2025-10-24
Sector Perform
Sector Perform
BMO Capital
2025-10-24
Market Perform
Market Perform
Citigroup
2025-10-13
Neutral
Neutral
Past News Coverage
Recent headlines mentioning NSC from our newsroom.
Newest → oldest
No matching news yet.