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Norfolk Southern (NSC) Stock Analysis

This is a peer-relative look at Norfolk Southern (NSC): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Transportation peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Norfolk Southern (NSC)
Profile ItemNSC
NameNorfolk Southern Corporation
Country/RegionUnited States
GICS SectorIndustrials
GICS Industry GroupTransportation
GICS IndustryGround Transportation
GICS Sub-IndustryRail Transportation
Market Capitalization75.10 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJune 2, 1982
Security TypeCommon Stock

Price Performance

Cumulative Growth

NSC
GSPC
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Norfolk Southern (NSC) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Norfolk Southern (NSC) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Norfolk Southern (NSC) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Norfolk Southern (NSC) metric values compared with Transportation industry-group medians
MetricCurrent stock: NSCIndustry group median
Total Return (1Y)21.32%39.74%
Total Return (3Y, Annualized)16.68%8.29%
Total Return (5Y, Annualized)7.72%8.88%

Risk Profile

Drawdown History

NSC
GSPC
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Norfolk Southern (NSC) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Norfolk Southern (NSC) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Norfolk Southern (NSC) metric values compared with Transportation industry-group medians
MetricCurrent stock: NSCIndustry group median
Volatility (1Y, Annualized)20.45%40.60%
Beta (5Y)1.271.16
Max Drawdown (5Y)-35.64%-52.55%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. NSC is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Norfolk Southern (NSC) metric values compared with Transportation industry-group medians
MetricCurrent stock: NSCIndustry group median
Sharpe Ratio (1Y)0.840.89
Sortino Ratio (1Y)1.331.39

Profitability

ROE (TTM)

Norfolk Southern (NSC) posts ROE of 16.99%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

NSC

Transportation industry group

16.99%

Group distribution
Max
42.67%
Q3
21.80%
NSC
16.99%
Median
11.68%
Q1
3.11%
Min
-15.07%
Largest peers
UNP
39.70%
UBER
37.16%
UPS
29.60%
CSX
24.36%
CNI
22.02%
NSC
16.99%
CP
8.15%
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Where Norfolk Southern (NSC) stands on ROE within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Norfolk Southern (NSC) keeps 21.02% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

NSC

Transportation industry group

21.02%

Group distribution
Max
50.36%
NSC
21.02%
Q3
20.85%
Median
5.56%
Q1
0.93%
Min
-11.37%
Largest peers
UNP
28.85%
CNI
26.92%
CP
25.03%
CSX
22.21%
NSC
21.02%
UBER
17.35%
UPS
5.08%
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Where Norfolk Southern (NSC) stands on net margin within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Norfolk Southern (NSC) turns 35.30% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

NSC

Transportation industry group

35.30%

Group distribution
Max
53.49%
NSC
35.30%
Q3
23.53%
Median
9.30%
Q1
3.10%
Min
-11.50%
Largest peers
UNP
40.98%
CNI
40.27%
CP
38.98%
CSX
38.42%
NSC
35.30%
UBER
13.32%
UPS
4.36%
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Where Norfolk Southern (NSC) stands on operating margin within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Norfolk Southern (NSC) metric values compared with Transportation industry-group medians
MetricCurrent stock: NSCIndustry group median
ROE (TTM)16.99%11.68%
ROA (TTM)5.95%4.23%
Net Margin (TTM)21.02%5.56%
Operating Margin (TTM)35.30%9.30%
Gross Margin (TTM)45.16%27.93%

Growth

Revenue Growth

Norfolk Southern (NSC) grew revenue 0.47%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Norfolk Southern (NSC): Revenue Growth across different time periods, set against Transportation industry-group medians.

EPS Growth

Norfolk Southern (NSC) grew earnings per share 10.20%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Norfolk Southern (NSC): EPS Growth across different time periods, set against Transportation industry-group medians.

Growth Metrics

Norfolk Southern (NSC) metric values compared with Transportation industry-group medians
MetricCurrent stock: NSCIndustry group median
Revenue Growth (YoY)0.47%2.79%
Revenue Growth (3Y CAGR)-1.50%1.64%
EPS Growth (YoY)10.20%-2.81%
EPS Growth (3Y CAGR)-2.79%-8.96%

Financial Strength

Current Ratio (MRQ)

Norfolk Southern (NSC) has current ratio of 0.83, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

NSC

Transportation industry group

0.83

Group distribution
Max
2.97
Q3
1.69
Median
1.19
NSC
0.83
Q1
0.79
Min
0.28
Largest peers
UPS
1.18
UNP
0.99
CNI
0.87
UBER
0.84
NSC
0.83
CSX
0.82
CP
0.59
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Where Norfolk Southern (NSC) stands on current ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Norfolk Southern (NSC) has debt-to-equity ratio of 1.06, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

NSC

Transportation industry group

1.06

Group distribution
Max
2.94
Q3
1.39
NSC
1.06
Median
0.80
Q1
0.36
Min
0.00
Largest peers
UPS
1.90
UNP
1.51
CSX
1.38
NSC
1.06
CNI
1.04
CP
0.53
UBER
0.52
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Where Norfolk Southern (NSC) stands on debt-to-equity ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Norfolk Southern (NSC) metric values compared with Transportation industry-group medians
MetricCurrent stock: NSCIndustry group median
Current Ratio (MRQ)0.831.19
Debt / Equity (MRQ)1.060.80
Net Debt / EBITDA2.842.26

Dividends

Dividend Yield (TTM)

Norfolk Southern (NSC) has dividend yield of 1.58%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

NSC

Transportation industry group

1.58%

Group distribution
Max
3.84%
Q3
1.74%
NSC
1.58%
Median
0.67%
Q1
0.00%
Min
0.00%
Largest peers
UPS
6.36%
CNI
2.85%
UNP
1.87%
NSC
1.58%
CSX
1.07%
CP
1.05%
UBER
0.00%
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Where Norfolk Southern (NSC) stands on dividend yield within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Norfolk Southern (NSC) has payout ratio of 46.08%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

NSC

Transportation industry group

46.08%

Group distribution
Max
85.28%
NSC
46.08%
Q3
43.41%
Median
21.92%
Q1
0.00%
Min
0.00%
Largest peers
UPS
121.93%
CNI
46.28%
NSC
46.08%
UNP
44.70%
CSX
31.40%
CP
22.14%
UBER
0.00%
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Where Norfolk Southern (NSC) stands on payout ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Norfolk Southern (NSC) metric values compared with Transportation industry-group medians
MetricCurrent stock: NSCIndustry group median
Dividend Yield (TTM)1.58%0.67%
Dividend Payout Ratio (TTM)46.08%21.92%

Valuation

P/E Ratio (TTM)

Norfolk Southern (NSC) trades at P/E ratio of 29.23, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

NSC

Transportation industry group

29.23

Group distribution
Max
57.88
Q3
33.39
NSC
29.23
Median
21.05
Q1
13.76
Min
2.18
Largest peers
CSX
29.57
CP
29.46
NSC
29.23
UNP
23.93
CNI
22.81
UPS
19.42
UBER
15.47
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Where Norfolk Southern (NSC) stands on P/E ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Norfolk Southern (NSC) trades at 5.99 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

NSC

Transportation industry group

5.99

Group distribution
NSC
5.99
Max
4.31
Q3
2.40
Median
1.26
Q1
0.67
Min
0.07
Largest peers
UNP
6.85
CSX
6.42
NSC
5.99
CP
5.21
CNI
4.31
UBER
2.77
UPS
0.99
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Where Norfolk Southern (NSC) stands on P/S ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Norfolk Southern (NSC) trades at 4.62 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

NSC

Transportation industry group

4.62

Group distribution
Max
7.77
NSC
4.62
Q3
4.30
Median
2.05
Q1
1.25
Min
-2.66
Largest peers
UNP
8.96
CSX
6.61
UBER
6.17
UPS
5.90
CNI
4.90
NSC
4.62
CP
2.43
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Where Norfolk Southern (NSC) stands on P/B ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Norfolk Southern (NSC) metric values compared with Transportation industry-group medians
MetricCurrent stock: NSCIndustry group median
P/E Ratio (TTM)29.2321.05
P/S Ratio (TTM)5.991.26
P/B Ratio (MRQ)4.622.05
Free Cash Flow Yield (TTM)1.84%2.73%