Norfolk Southern Return On Asset vs. Return On Equity
| NSC Stock | USD 275.85 0.47 0.17% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.58 | 0.4427 |
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| Net Profit Margin | 0.12 | 0.1503 |
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| Operating Profit Margin | 0.19 | 0.2345 |
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| Pretax Profit Margin | 0.17 | 0.1909 |
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| Return On Assets | 0.0419 | 0.0439 |
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| Return On Equity | 0.1 | 0.1429 |
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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's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
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 10.66 | 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.
Norfolk Southern Return On Equity vs. Return On Asset 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 regarded second in return on asset category among its peers. It is regarded third in return on equity category among its peers reporting about 2.70 of Return On Equity per Return On Asset. 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 vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Norfolk Southern |
| = | 0.0677 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
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.
Norfolk Southern |
| = | 0.18 |
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.
Norfolk Return On Equity Comparison
Norfolk Southern is currently under evaluation in return on equity category among its peers.
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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -320 M | -336 M | |
| Operating Income | 2.9 B | 2.2 B | |
| Income Before Tax | 2.3 B | 1.9 B | |
| Total Other Income Expense Net | -531 M | -504.4 M | |
| Net Income | 1.8 B | 1.5 B | |
| Income Tax Expense | 493 M | 505.8 M | |
| Net Income Applicable To Common Shares | 3.8 B | 1.9 B | |
| Net Income From Continuing Ops | 2.1 B | 2.5 B | |
| Non Operating Income Net Other | 11.7 M | 11.1 M | |
| Interest Income | 795.8 M | 507.1 M | |
| Net Interest Income | -704 M | -739.2 M | |
| Change To Netincome | -61.2 M | -64.3 M | |
| Net Income Per Share | 8.05 | 8.45 | |
| Income Quality | 1.74 | 2.77 | |
| Net Income Per E B T | 0.79 | 0.57 |
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?
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Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 constituents at this time.
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Check out Correlation Analysis. For information on how to trade Norfolk Stock refer to our How to Trade Norfolk Stock guide.You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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.