Norfolk Southern Stock Analysis, Valuation (NYSE:NSC)

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$153.02 $0.03 (0.02%) NSC stock closing price May 25, 2018 (Closing)
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Norfolk Southern
Updated on : May 25, 2018
previous close
NSC 153 (0%)
S&P 500 2721.3 (0%)
Closing Price On: May 25, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Transportation-Rail
Sector :
Transportation
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.5%
Operating Profit
Operating Margin:
34.1%
Sector Average:
8.1%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$816M
Net Income:
$552M
Dividend Yield
NSC dividend yield:
1.67%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
Long Term Growth
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
NSC PS :
4.1
Industry PS :
1.5
Sector:   Transportation.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
9.6%
Return on Equity:
39.1%
Free Cash Flow Margin:
16.4%
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Norfolk Southern Stock Analysis

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View the Norfolk Southern stock analysis video on Amigobulls. Our NSC analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Norfolk Southern Corp. Stock Rating 3.6/5

Amigobulls NSC stock analysis uses latest quarter 2018 Q1 financial data like Norfolk Southern revenue growth, profit margins and cash flows. Norfolk Southern valuation forms a crucial part of our stock analysis. Norfolk Southern stock rating is our opinion about the business fundamentals of the company.

Should you buy NSC stock?

  • Norfolk Southern's average operating margin of 34.1% was exceptional.
  • Net margins stood at a healthy 51.7% (average) for Norfolk Southern in the Trailing Twelve Months.
  • Norfolk Southern has an attractive ROIC (Return on Invested Capital) of 9.6%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Norfolk Southern at 39.1%.
  • The company has a healthy free cash flow margin of 16.4%.

Should you sell NSC stock?

  • Sales declined by -0.5% annually over the last 5 years.
  • The company is trading at a price to sales multiple of 4.1, which is higher in comparison to the Transportation-Rail industry average of 1.5, making NSC stock expensive.

Comments on this video and Norfolk Southern stock

Amigobulls Norfolk Southern stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, Norfolk Southern revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.