Norfolk Southern Corporation

Valuation Analysis

About the Company

Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals, including sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement,

Norfolk Southern Corporation Stock at a Glance

Norfolk Southern Corporation (NSC) is currently trading at $313.91 with a market capitalization of $70.5B. The trailing P/E ratio stands at 26.45x, with a forward P/E of 23.17x. The 52-week range spans from $248.82 to $326.00; the current price is 3.7% below the yearly high. Year-over-year revenue growth stands at +0.2%. The net profit margin stands at 21.91%.

💰 Dividend

Norfolk Southern Corporation pays an annual dividend of $5.40 per share, representing a yield of 1.72%. The payout ratio stands at 45.49%.

📊 Analyst Rating

17 analysts rate Norfolk Southern Corporation (NSC) on consensus: Hold. The average price target is $335.71, implying +6.94% from the current price. Analyst price targets range from $297.00 to $378.00.

Norfolk Southern Corporation: The Investment Case in Detail

Norfolk Southern Corporation (NSC) operates in the Industrials — specifically Railroads — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

The combination of a 45.85% gross margin and 32.26% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat. Free cash flow is positive and net margins stand at 21.91%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

The Bear Case

Revenue growth has slowed to just 0.2%, which is below nominal GDP — the business is no longer outgrowing the broader economy.

Valuation in Context

At a PEG of 4.59, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

What to Watch Next

• The forward P/E of 23.17x is meaningfully below the trailing 26.45x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to market-like volatility, higher leverage relative to equity.

Trading Data

💵 Dividend Info

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