Norfolk Southern Net Income vs. Revenue
| NFS Stock | EUR 246.00 2.00 0.81% |
For Norfolk Southern profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Norfolk Southern to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Norfolk Southern utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Norfolk Southern's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Norfolk Southern over time as well as its relative position and ranking within its peers.
Norfolk |
Norfolk Southern Revenue vs. Net Income Fundamental Analysis
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. Norfolk Southern is considered to be number one stock in net income category among its peers. It also is rated top company in revenue category among its peers totaling about 3.90 of Revenue per Net Income. 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 Revenue vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Norfolk Southern |
| = | 3.27 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Norfolk Southern |
| = | 12.74 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Norfolk Revenue vs Competition
Norfolk Southern is rated top company in revenue category among its peers. Market size based on revenue of Railroads industry is now estimated at about 666.18 Billion. Norfolk Southern claims roughly 12.74 Billion in revenue contributing just under 2% to equities listed under Railroads industry.
Norfolk Southern Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Norfolk Southern, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Norfolk Southern will eventually generate negative long term returns. The profitability progress is the general direction of Norfolk Southern's change in net profit over the period of time. It can combine multiple indicators of Norfolk Southern, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods. Norfolk Southern Corporation was founded in 1883 and is based in Norfolk, Virginia. NORFOLK STHN operates under Railroads classification in Germany and is traded on Frankfurt Stock Exchange. It employs 26662 people.
Norfolk Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Norfolk Southern. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Norfolk Southern position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Norfolk Southern's important profitability drivers and their relationship over time.
Use Norfolk Southern in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Norfolk Southern position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Norfolk Southern will appreciate offsetting losses from the drop in the long position's value.Norfolk Southern Pair Trading
Norfolk Southern Pair Trading Analysis
The ability to find closely correlated positions to Norfolk Southern could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Norfolk Southern when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Norfolk Southern - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Norfolk Southern to buy it.
The correlation of Norfolk Southern is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Norfolk Southern moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Norfolk Southern moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Norfolk Southern can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Norfolk Southern position
In addition to having Norfolk Southern in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Computers Thematic Idea Now
Computers
Companies that manufacture and distribute personal and business computers. The Computers theme has 44 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Computers Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Norfolk Stock
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 Correlation Analysis. For more detail on how to invest in Norfolk Stock please use our How to Invest in Norfolk Southern guide.You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
To fully project Norfolk Southern's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Norfolk Southern at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Norfolk Southern's income statement, its balance sheet, and the statement of cash flows.