Norfolk Southern Stock Fundamentals

NSC Stock  USD 264.26  5.33  2.06%   
Norfolk Southern fundamentals help investors to digest information that contributes to Norfolk Southern's financial success or failures. It also enables traders to predict the movement of Norfolk Stock. The fundamental analysis module provides a way to measure Norfolk Southern's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Norfolk Southern stock.
At present, Norfolk Southern's Other Operating Expenses is projected to increase significantly based on the last few years of reporting. The current year's Total Operating Expenses is expected to grow to about 9.8 B, whereas Depreciation And Amortization is forecasted to decline to about 660.1 M.
  
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Norfolk Southern Company Return On Equity Analysis

Norfolk Southern's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

 = 

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current Norfolk Southern Return On Equity

    
  0.18  
Most of Norfolk Southern's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Norfolk Southern is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Norfolk Return On Equity Historical Pattern

Today, most investors in Norfolk Southern Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Norfolk Southern's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Norfolk Southern return on equity as a starting point in their analysis.
   Norfolk Southern Return On Equity   
       Timeline  
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Competition

Norfolk Total Stockholder Equity

Total Stockholder Equity

9.48 Billion

At present, Norfolk Southern's Total Stockholder Equity is projected to increase significantly based on the last few years of reporting.
Based on the latest financial disclosure, Norfolk Southern has a Return On Equity of 0.183. This is 58.41% lower than that of the Ground Transportation sector and 93.78% lower than that of the Industrials industry. The return on equity for all United States stocks is 159.03% lower than that of the firm.

Norfolk Southern Fundamental Drivers Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Norfolk Southern's current stock value. Our valuation model uses many indicators to compare Norfolk Southern value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Norfolk Southern competition to find correlations between indicators driving Norfolk Southern's intrinsic value. More Info.
Norfolk Southern is regarded fifth in return on equity category among its peers. It is regarded fourth in return on asset category among its peers reporting about  0.37  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Norfolk Southern is roughly  2.70 . At present, Norfolk Southern's Return On Equity is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Norfolk Southern's earnings, one of the primary drivers of an investment's value.

Norfolk Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Norfolk Southern's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Norfolk Southern could also be used in its relative valuation, which is a method of valuing Norfolk Southern by comparing valuation metrics of similar companies.
Norfolk Southern is currently under evaluation in return on equity category among its peers.

Norfolk Southern ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Norfolk Southern's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Norfolk Southern's managers, analysts, and investors.
Environmental
Governance
Social

Norfolk Fundamentals

About Norfolk Southern Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Norfolk Southern's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Norfolk Southern using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Norfolk Southern based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for Next Year
Current Deferred Revenue117 M111.2 M
Total Revenue12.2 B8.4 B
Cost Of Revenue6.1 B4.1 B
Sales General And Administrative To Revenue(0.01)(0.01)
Capex To Revenue 0.19  0.13 
Revenue Per Share 53.57  56.25 
Ebit Per Revenue 0.23  0.19 

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When determining whether Norfolk Southern offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Norfolk Southern's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Norfolk Southern Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Norfolk Southern Stock:
Check out Norfolk Southern Piotroski F Score and Norfolk Southern Altman Z Score analysis.
For information on how to trade Norfolk Stock refer to our How to Trade Norfolk Stock guide.
You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Is Ground Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Norfolk Southern. If investors know Norfolk will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Norfolk Southern listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.31
Dividend Share
5.4
Earnings Share
10.65
Revenue Per Share
53.858
Quarterly Revenue Growth
0.027
The market value of Norfolk Southern is measured differently than its book value, which is the value of Norfolk that is recorded on the company's balance sheet. Investors also form their own opinion of Norfolk Southern's value that differs from its market value or its book value, called intrinsic value, which is Norfolk Southern's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Norfolk Southern's market value can be influenced by many factors that don't directly affect Norfolk Southern's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Norfolk Southern's value and its price as these two are different measures arrived at by different means. Investors typically determine if Norfolk Southern is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Norfolk Southern's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.