Norfolk Southern Corporation (NSC) 10-Year Financial Performance & Capital Metrics

NSC • • Industrial / General

IndustrialsRailroadsClass I RailroadsNorth American Class I Railroads

AboutNorfolk 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, scrap paper, beverages, canned goods, and consumer products; chemicals consist of sulfur and related chemicals, petroleum products, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, and sand; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal. It also transports overseas freight through various Atlantic and Gulf Coast ports; and provides commuter rail passenger transportation services and operates an intermodal network. As of December 31, 2021, the company operated approximately 19,300 route miles in 22 states and the District of Columbia. Norfolk Southern Corporation was incorporated in 1980 and is based in Atlanta, Georgia.Show more

Revenue $12.12B -0.3%
EBITDA $5.12B +24.6%
Net Income $2.62B +43.5%
EPS (Diluted) 11.57 +44.3%
Gross Margin 31.05% +34.4%
EBITDA Margin 42.21% +25.0%
Operating Margin 31.05% +34.4%
Net Margin 21.63% +43.9%
ROE 19.36% +35.2%
ROIC 9.58% +28.9%
Debt/Equity 1.22 -11.1%
Interest Coverage 4.66 +19.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 7/9
✓23 consecutive years of dividend growth
✓High quality earnings: Operating CF exceeds net income
✓Good 3Y average ROE of 19.5%
✓Healthy 5Y average net margin of 22.0%
✓Trading near 52-week high

✗Weaknesses

✗Low asset turnover indicates capital-intensive operations

Price & Volume

Loading chart...

Growth Metrics

Revenue CAGR

10Y0.42%

5Y1.42%

3Y2.85%

TTM0.48%

Profit (Net Income) CAGR

10Y2.74%

5Y-0.75%

3Y-4.44%

TTM22.6%

EPS CAGR

10Y6.12%

5Y2.45%

3Y-1.51%

TTM22.98%

ROCE

10Y Avg10.41%

5Y Avg10.35%

3Y Avg10.03%

Latest9.51%

Peer Comparison

North American Class I Railroads

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
NSCNorfolk Southern Corporation	64.67B	288.20	24.91	-0.27%	24.22%	19.56%	2.58%	1.22
UNPUnion Pacific Corporation	136.01B	229.29	20.68	0.54%	28.73%	40.75%	4.33%	1.92
CSXCSX Corporation	66.35B	35.63	19.91	-0.8%	19.21%	22.57%	4.1%	1.52
CPCanadian Pacific Kansas City Ltd.	63.64B	70.65	17.75	15.86%	28.38%	12.73%	3.78%	0.47
CNICanadian National Railway Company	59.93B	97.36	13.89	1.3%	26.62%	21.19%	5.26%	1.02

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	10.51B	9.89B	10.55B	11.46B	11.3B	9.79B	11.14B	12.74B	12.16B	12.12B
Revenue Growth %	-0.1%	-0.06%	0.07%	0.09%	-0.01%	-0.13%	0.14%	0.14%	-0.05%	-0%
Cost of Goods Sold+	7.63B	6.82B	7.03B	7.5B	7.4B	6.39B	6.78B	8.01B	9.35B	8.36B
COGS % of Revenue	0.73%	0.69%	0.67%	0.65%	0.66%	0.65%	0.61%	0.63%	0.77%	0.69%
Gross Profit+	2.88B	3.07B	3.52B	3.96B	3.89B	3.4B	4.37B	4.73B	2.81B	3.76B
Gross Margin %	0.27%	0.31%	0.33%	0.35%	0.34%	0.35%	0.39%	0.37%	0.23%	0.31%
Gross Profit Growth %	-0.19%	0.07%	0.15%	0.12%	-0.02%	-0.13%	0.28%	0.08%	-0.41%	0.34%
Operating Expenses+	0	0	0	0	0	0	0	0	0	0
OpEx % of Revenue	-	-	-	-	-	-	-	-	-	-
Selling, General & Admin	0	0	0	0	0	0	0	0	0	-120M
SG&A % of Revenue	-	-	-	-	-	-	-	-	-	-0.01%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	0	0	0	0	0	0	0	120M
Operating Income+	2.88B	3.07B	3.52B	3.96B	3.89B	3.4B	4.37B	4.73B	2.81B	3.76B
Operating Margin %	0.27%	0.31%	0.33%	0.35%	0.34%	0.35%	0.39%	0.37%	0.23%	0.31%
Operating Income Growth %	-0.19%	0.07%	0.15%	0.12%	-0.02%	-0.13%	0.28%	0.08%	-0.41%	0.34%
EBITDA+	3.94B	4.13B	4.58B	5.06B	5.03B	4.55B	5.55B	5.95B	4.11B	5.12B
EBITDA Margin %	0.37%	0.42%	0.43%	0.44%	0.45%	0.46%	0.5%	0.47%	0.34%	0.42%
EBITDA Growth %	-0.13%	0.05%	0.11%	0.11%	-0.01%	-0.1%	0.22%	0.07%	-0.31%	0.25%
D&A (Non-Cash Add-back)	1.06B	1.06B	1.05B	1.1B	1.14B	1.15B	1.18B	1.22B	1.3B	1.35B
EBIT	2.99B	3.15B	3.68B	4.03B	4.09B	3.15B	4.52B	4.82B	3.04B	4.14B
Net Interest Income+	-541M	-559M	-550M	-557M	-604M	-625M	-646M	-692M	-722M	-807M
Interest Income	8M	10M	0	0	0	0	0	0	0	0
Interest Expense	545M	569M	550M	557M	604M	625M	646M	692M	722M	807M
Other Income/Expense	-437M	-488M	-394M	-490M	-402M	-867M	-487M	-603M	-488M	-435M
Pretax Income+	2.44B	2.58B	3.13B	3.47B	3.49B	2.53B	3.88B	4.13B	2.32B	3.33B
Pretax Margin %	0.23%	0.26%	0.3%	0.3%	0.31%	0.26%	0.35%	0.32%	0.19%	0.27%
Income Tax+	886M	914M	-2.28B	803M	769M	517M	873M	860M	493M	707M
Effective Tax Rate %	0.64%	0.65%	1.73%	0.77%	0.78%	0.8%	0.77%	0.79%	0.79%	0.79%
Net Income+	1.56B	1.67B	5.4B	2.67B	2.72B	2.01B	3B	3.27B	1.83B	2.62B
Net Margin %	0.15%	0.17%	0.51%	0.23%	0.24%	0.21%	0.27%	0.26%	0.15%	0.22%
Net Income Growth %	-0.22%	0.07%	2.24%	-0.51%	0.02%	-0.26%	0.49%	0.09%	-0.44%	0.44%
Net Income (Continuing)	1.56B	1.67B	5.4B	2.67B	2.72B	2.01B	3B	3.27B	1.83B	2.62B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	5.10	5.62	18.61	9.51	10.25	7.84	12.11	13.88	8.02	11.57
EPS Growth %	-0.2%	0.1%	2.31%	-0.49%	0.08%	-0.24%	0.54%	0.15%	-0.42%	0.44%
EPS (Basic)	5.13	5.66	18.76	9.94	10.32	7.88	12.16	13.92	8.04	11.58
Diluted Shares Outstanding	304.4M	296M	290.3M	280.2M	265.6M	256.6M	248.1M	235.6M	227.4M	226.4M
Basic Shares Outstanding	301.9M	293.9M	287.9M	268.1M	263.3M	255.1M	246.9M	234.8M	226.9M	226.1M
Dividend Payout Ratio	0.46%	0.42%	0.13%	0.32%	0.35%	0.48%	0.34%	0.36%	0.67%	0.47%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	2.63B	2.29B	2.15B	1.86B	2.08B	2.32B	2.17B	2.01B	3.27B	3.19B
Cash & Short-Term Investments	1.1B	956M	690M	358M	580M	1.11B	839M	456M	1.57B	1.64B
Cash Only	1.1B	956M	690M	358M	580M	1.11B	839M	456M	1.57B	1.64B
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	946M	945M	955M	1.01B	920M	848M	976M	1.15B	1.15B	1.07B
Days Sales Outstanding	32.85	34.88	33.04	32.14	29.73	31.62	31.97	32.88	34.44	32.19
Inventory	271M	257M	222M	207M	244M	221M	218M	253M	264M	277M
Days Inventory Outstanding	12.96	13.76	11.53	10.08	12.03	12.62	11.74	11.53	10.31	12.1
Other Current Assets	194M	133M	282M	288M	337M	134M	134M	150M	292M	201M
Total Non-Current Assets+	31.63B	32.6B	33.56B	34.38B	35.84B	35.64B	36.33B	36.88B	38.38B	40.49B
Property, Plant & Equipment	28.99B	29.75B	30.33B	31.09B	31.61B	31.34B	31.65B	32.16B	33.33B	35.83B
Fixed Asset Turnover	0.36x	0.33x	0.35x	0.37x	0.36x	0.31x	0.35x	0.40x	0.36x	0.34x
Goodwill	0	0	0	0	0	0	0	0	0	0
Intangible Assets	-421M	-329M	-366M	-380M	-388M	-399M	0	0	0	0
Long-Term Investments	2.57B	2.78B	2.98B	3.11B	3.43B	3.59B	3.71B	3.69B	3.84B	3.37B
Other Non-Current Assets	363M	-8.74B	-5.71B	557M	1.19B	1.11B	966M	1.03B	1.22B	1.29B
Total Assets+	34.26B	34.89B	35.71B	36.24B	37.92B	37.96B	38.49B	38.88B	41.65B	43.68B
Asset Turnover	0.31x	0.28x	0.30x	0.32x	0.30x	0.26x	0.29x	0.33x	0.29x	0.28x
Asset Growth %	0.03%	0.02%	0.02%	0.01%	0.05%	0%	0.01%	0.01%	0.07%	0.05%
Total Current Liabilities+	2.23B	2.34B	2.54B	2.59B	2.3B	2.16B	2.52B	2.65B	2.63B	3.54B
Accounts Payable	602M	650M	822M	828M	710M	552M	850M	712M	997M	985M
Days Payables Outstanding	28.79	34.8	42.68	40.3	35.01	31.52	45.78	32.44	38.93	43.01
Short-Term Debt	700M	650M	700M	585M	316M	579M	553M	703M	4M	555M
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	423M	436M	438M	460M	429M	375M	365M	396M	760M	1.03B
Current Ratio	1.18x	0.98x	0.84x	0.72x	0.90x	1.07x	0.86x	0.76x	1.24x	0.90x
Quick Ratio	1.06x	0.87x	0.76x	0.64x	0.80x	0.97x	0.77x	0.66x	1.14x	0.82x
Cash Conversion Cycle	17.02	13.84	1.88	1.92	6.75	12.72	-2.07	11.97	5.82	1.27
Total Non-Current Liabilities+	19.84B	20.14B	16.81B	18.29B	20.44B	21.01B	22.33B	23.5B	26.24B	25.83B
Long-Term Debt	9.39B	9.56B	9.14B	10.56B	11.88B	12.1B	13.29B	14.48B	17.18B	16.65B
Capital Lease Obligations	0	0	0	0	441M	344M	331M	316M	287M	191M
Deferred Tax Liabilities	9.06B	9.14B	6.32B	6.46B	6.82B	6.92B	7.17B	7.26B	7.22B	7.42B
Other Non-Current Liabilities	1.1B	1.16B	1.07B	986M	1.02B	1.11B	1.01B	909M	1.55B	1.57B
Total Liabilities	22.07B	22.48B	19.35B	20.88B	22.74B	23.17B	24.85B	26.15B	28.87B	29.38B
Total Debt+	10.09B	10.21B	9.84B	11.14B	12.73B	13.11B	14.25B	15.59B	17.57B	17.48B
Net Debt	8.99B	9.26B	9.15B	10.79B	12.15B	12B	13.41B	15.14B	16B	15.84B
Debt / Equity	0.83x	0.82x	0.60x	0.73x	0.84x	0.89x	1.04x	1.22x	1.37x	1.22x
Debt / EBITDA	2.56x	2.47x	2.15x	2.20x	2.53x	2.88x	2.57x	2.62x	4.28x	3.42x
Net Debt / EBITDA	2.28x	2.24x	2.00x	2.13x	2.42x	2.64x	2.42x	2.54x	3.90x	3.09x
Interest Coverage	5.28x	5.40x	6.40x	7.11x	6.45x	5.44x	6.76x	6.84x	3.89x	4.66x
Total Equity+	12.19B	12.41B	16.36B	15.36B	15.18B	14.79B	13.64B	12.73B	12.78B	14.31B
Equity Growth %	-0.02%	0.02%	0.32%	-0.06%	-0.01%	-0.03%	-0.08%	-0.07%	0%	0.12%
Book Value per Share	40.04	41.92	56.35	54.83	57.17	57.64	54.98	54.04	56.20	63.19
Total Shareholders' Equity	12.19B	12.41B	16.36B	15.36B	15.18B	14.79B	13.64B	12.73B	12.78B	14.31B
Common Stock	299M	292M	285M	269M	259M	254M	242M	230M	227M	228M
Retained Earnings	10.19B	10.43B	14.18B	13.44B	13.21B	12.88B	11.59B	10.7B	10.7B	12.09B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-445M	-487M	-356M	-563M	-491M	-594M	-402M	-351M	-320M	-262M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	2.88B	3.03B	3.25B	3.73B	3.89B	3.64B	4.25B	4.22B	3.18B	4.05B
Operating CF Margin %	0.27%	0.31%	0.31%	0.33%	0.34%	0.37%	0.38%	0.33%	0.26%	0.33%
Operating CF Growth %	0.01%	0.05%	0.07%	0.15%	0.04%	-0.07%	0.17%	-0.01%	-0.25%	0.27%
Net Income	1.56B	1.67B	5.4B	2.67B	2.72B	2.01B	3B	3.27B	1.83B	2.62B
Depreciation & Amortization	1.06B	1.03B	1.06B	1.1B	1.14B	1.15B	1.18B	1.22B	1.3B	1.35B
Stock-Based Compensation	0	0	0	0	0	28M	0	53M	0	0
Deferred Taxes	320M	227M	-2.86B	173M	330M	142M	184M	83M	-49M	176M
Other Non-Cash Items	-78M	-196M	-409M	-339M	-160M	169M	-262M	-204M	-265M	-724M
Working Capital Changes	114M	305M	58M	122M	-139M	131M	147M	-201M	368M	625M
Change in Receivables	109M	23M	-41M	-70M	87M	71M	-133M	-171M	-2M	85M
Change in Inventory	-35M	42M	35M	15M	-37M	23M	3M	-35M	-11M	-13M
Change in Payables	0	0	0	0	0	0	0	0	379M	0
Cash from Investing+	-2.09B	-1.83B	-1.48B	-1.66B	-1.76B	-1.18B	-1.22B	-1.6B	-2.18B	-2.78B
Capital Expenditures	-2.38B	-1.89B	-1.72B	-1.95B	-2.02B	-1.49B	-1.47B	-1.95B	-2.35B	-4.02B
CapEx % of Revenue	0.23%	0.19%	0.16%	0.17%	0.18%	0.15%	0.13%	0.15%	0.19%	0.33%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	63M	0	0	0	377M	333M	0	0	86M	0
Cash from Financing+	-662M	-1.35B	-2.04B	-2.31B	-1.99B	-1.93B	-3.31B	-3B	115M	-1.2B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-713M	-695M	-703M	-844M	-949M	-960M	-1.03B	-1.17B	-1.23B	-1.22B
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	0	0	0	0	23M	0	0	0	3M	0
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	492M	1.15B	1.53B	1.77B	1.87B	2.14B	2.79B	2.27B	830M	1.67B
FCF Margin %	0.05%	0.12%	0.15%	0.15%	0.17%	0.22%	0.25%	0.18%	0.07%	0.14%
FCF Growth %	-0.33%	1.33%	0.33%	0.16%	0.06%	0.14%	0.3%	-0.18%	-0.64%	1.01%
FCF per Share	1.62	3.88	5.27	6.33	7.05	8.35	11.23	9.65	3.65	7.38
FCF Conversion (FCF/Net Income)	1.85x	1.82x	0.60x	1.40x	1.43x	1.81x	1.42x	1.29x	1.74x	1.55x
Interest Paid	518M	543M	528M	496M	555M	577M	579M	619M	653M	764M
Taxes Paid	386M	593M	705M	519M	543M	311M	654M	750M	681M	305M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	12.65%	13.56%	37.57%	16.81%	17.82%	13.43%	21.14%	24.8%	14.32%	19.36%
Return on Invested Capital (ROIC)	10.37%	10.75%	11.2%	11.5%	10.92%	9.41%	12.16%	12.93%	7.43%	9.58%
Gross Margin	27.39%	31.05%	33.38%	34.55%	34.46%	34.7%	39.18%	37.14%	23.1%	31.05%
Net Margin	14.8%	16.87%	51.22%	23.27%	24.1%	20.56%	26.97%	25.66%	15.03%	21.63%
Debt / Equity	0.83x	0.82x	0.60x	0.73x	0.84x	0.89x	1.04x	1.22x	1.37x	1.22x
Interest Coverage	5.28x	5.40x	6.40x	7.11x	6.45x	5.44x	6.76x	6.84x	3.89x	4.66x
FCF Conversion	1.85x	1.82x	0.60x	1.40x	1.43x	1.81x	1.42x	1.29x	1.74x	1.55x
Revenue Growth	-9.57%	-5.93%	6.71%	8.6%	-1.41%	-13.34%	13.82%	14.39%	-4.62%	-0.27%

Revenue by Segment

	2018	2019	2020	2021	2022	2023	2024
Railway Operating Revenues Market Group Merchandise	6.74B	6.8B	6.09B	6.67B	7.33B	7.35B	7.47B
Railway Operating Revenues Market Group Merchandise Growth	-	0.87%	-10.51%	9.54%	9.93%	0.30%	1.59%
Railway Operating Revenues Market Group Intermodal	2.89B	2.82B	2.65B	3.16B	3.68B	3.09B	3.04B
Railway Operating Revenues Market Group Intermodal Growth	-	-2.39%	-6.02%	19.18%	16.38%	-16.06%	-1.55%
Railway Operating Revenues Market Group Coal	1.82B	1.67B	1.05B	1.31B	1.73B	1.71B	1.61B
Railway Operating Revenues Market Group Coal Growth	-	-8.35%	-37.27%	25.12%	32.29%	-1.15%	-5.95%

Frequently Asked Questions

Valuation & Price

Norfolk Southern Corporation (NSC) has a price-to-earnings (P/E) ratio of 24.9x. This is roughly in line with market averages.

Growth & Financials

Norfolk Southern Corporation (NSC) reported $12.23B in revenue for fiscal year 2024. This represents a 9% increase from $11.17B in 2011.

Norfolk Southern Corporation (NSC) saw revenue decline by 0.3% over the past year.

Yes, Norfolk Southern Corporation (NSC) is profitable, generating $2.96B in net income for fiscal year 2024 (21.6% net margin).

Dividend & Returns

Yes, Norfolk Southern Corporation (NSC) pays a dividend with a yield of 1.87%. This makes it attractive for income-focused investors.

Norfolk Southern Corporation (NSC) has a return on equity (ROE) of 19.4%. This is reasonable for most industries.

Norfolk Southern Corporation (NSC) generated $2.10B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

US Stock Screener

...