Norfolk Southern (NSC) AI Stock Analysis

• Market Cap: $56.66B
• Dividend Yield: 2.15%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.92
• Revenue Growth: 0.70%
• EPS Growth: 135.08%
• Country: US
• Employees: 19,600
• Sector: Industrials
• Sector Strength: 87
• Industry: Railroads
• EPS (TTM): 2.69
• Shares Outstanding: 225,443,500
• 10 Day Avg. Volume: 1,497,614
• 30 Day Avg. Volume: 1,231,792
• PEG Ratio: 0.85
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.65
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 14.86
• Enterprise Value/Ebitda: 2.98
• 1Y Price Target: $262.29
• Price Target Upside: 5.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 78 Outperform
• Price Target: $283.00 ▲(13.84%Upside)

Norfolk Southern's overall stock score reflects its strong financial performance and efficient management, balanced by moderate technical indicators and reasonable valuation. The earnings call highlighted resilience and operational strength despite external challenges. Leadership changes add a positive strategic outlook, though macro-economic uncertainties remain a concern.

Positive Factors

Financial Performance

Norfolk Southern reported first-quarter adjusted earnings per share of $2.69, which exceeded the consensus estimate, demonstrating strong financial performance despite challenges.

Market Share

Norfolk Southern's service rebound is enabling it to win business, customers, and market share, with volumes up 7%.

Revenue Growth

The company reaffirmed its 2025 targets for revenue growth and operational efficiency, aiming for a 3% revenue increase and a notable improvement in operating ratio.

Negative Factors

Coal Pricing

Coal pricing remains a significant challenge due to depressed seaborne coal pricing, affecting Norfolk Southern's pricing strategy.

Export Coal Volumes

Weak seaborne prices are anticipated to pressure export coal volumes and revenue per unit.

Macro Uncertainty

Macro uncertainty is weakening volume as weekly volume has decreased.

Norfolk Southern Business Overview & Revenue Model

Company Description

Norfolk Southern Corporation (NSC) is a major American transportation company headquartered in Atlanta, Georgia. Operating primarily in the eastern United States, the company is one of the nation's leading railroad networks, providing rail transportation services for raw materials, intermediate products, and finished goods. Its core services include the transportation of industrial products, coal, intermodal containers, and automotive products, serving various sectors such as agriculture, construction, and manufacturing.

How the Company Makes Money

Norfolk Southern makes money primarily through its freight transportation services, which generate revenue by transporting goods across its extensive rail network. The company's revenue streams are divided into several key segments: merchandise, intermodal, and coal. The merchandise segment includes transportation of products such as chemicals, agriculture, and metals, which is the largest revenue contributor. The intermodal segment involves transporting shipping containers and trailers, capitalizing on the efficiency of rail over long distances. Coal transport, although declining in demand, remains a significant revenue source. Norfolk Southern also forms strategic partnerships with other rail companies to optimize routes and service offerings, enhancing its competitive position and contributing to its earnings.

Norfolk Southern Financial Statement Overview

Summary

Norfolk Southern demonstrates solid financial health with strong profitability and efficient cash flow management. While revenue growth has plateaued, profitability metrics remain high, and the balance sheet is well-structured with manageable leverage. Continued focus on revenue expansion and careful debt management will be crucial for sustaining long-term growth.

Income Statement

Norfolk Southern shows robust profitability with a strong gross profit margin of 45.3% and a net profit margin of 27.4% TTM (Trailing-Twelve-Months). EBIT and EBITDA margins are also healthy at 41.1% and 50.3% respectively. However, revenue growth has been stagnant, with a slight decline in total revenue over the recent periods, which may signal challenges in expanding market reach or competitive pressures.

Balance Sheet

The balance sheet indicates solid equity with a debt-to-equity ratio of 1.19 and an equity ratio of 33.1% TTM. Return on Equity is commendable at 22.9%, reflecting effective use of shareholder funds. The company's substantial debt load is balanced by strong equity, yet the relatively high leverage could pose risks if market conditions change.

Cash Flow

Cash flow performance is strong, with a free cash flow to net income ratio of 0.70 TTM, highlighting efficient cash conversion. Operating cash flow to net income ratio stands at 1.25, indicating robust cash generation relative to net income. Though free cash flow growth has been inconsistent, the company maintains healthy operational cash flows.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.11B	12.12B	12.16B	12.74B	11.14B	9.79B
	Gross Profit
4.73B	4.54B	5.38B	5.52B	4.99B	4.04B
	EBIT
4.98B	4.07B	2.85B	4.81B	4.45B	3.00B
	EBITDA
6.47B	4.07B	4.34B	6.04B	5.71B	4.63B
	Net Income Common Stockholders
3.32B	2.62B	1.83B	3.27B	3.00B	2.01B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.07B	1.64B	1.57B	456.00M	839.00M	1.11B
	Total Assets
36.16B	43.68B	41.65B	38.88B	38.49B	37.96B
	Total Debt
10.29B	17.48B	17.57B	15.18B	13.84B	12.68B
	Net Debt
9.21B	15.84B	16.00B	14.73B	13.00B	11.57B
	Total Liabilities
19.74B	29.38B	28.87B	26.15B	24.85B	23.17B
	Stockholders Equity
16.42B	14.31B	12.78B	12.73B	13.64B	14.79B
Cash Flow		Free Cash Flow
1.89B	1.67B	830.00M	2.27B	2.79B	2.14B
	Operating Cash Flow
4.16B	4.05B	3.18B	4.22B	4.25B	3.64B
	Investing Cash Flow
-1.96B	-2.78B	-2.18B	-1.60B	-1.22B	-1.18B
	Financing Cash Flow
-1.85B	-1.20B	115.00M	-3.00B	-3.31B	-1.93B

Norfolk Southern Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 248.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSC, the sentiment is Positive. The current price of 248.6 is above the 20-day moving average (MA) of 246.35, above the 50-day MA of 231.99, and above the 200-day MA of 243.82, indicating a bullish trend. The MACD of 4.86 indicates Positive momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 51.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NSC.

Norfolk Southern Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSC	78 Outperform	$56.66B	17.16	24.52%	2.15%	0.70%	135.08%
FDX	76 Outperform	$53.67B	14.06	14.74%	2.45%	0.34%	-8.45%
CSX	73 Outperform	$60.71B	19.26	26.13%	1.60%	-2.39%	-7.80%
UPS	73 Outperform	$85.66B	14.76	35.96%	6.50%	1.30%	-0.76%
UNP	71 Outperform	$134.86B	20.34	42.47%	2.38%	0.63%	5.93%
JBHT	67 Neutral	$13.98B	25.39	13.97%	1.25%	-3.82%	-12.80%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%

Norfolk Southern Corporate Events

Norfolk Southern Appoints Richard Anderson as New Chair

On June 12, 2025, Norfolk Southern Corporation announced the election of Richard H. Anderson as the new Chair of the Board, following the resignation of Claude Mongeau on June 2, 2025. Anderson, with a background as CEO of Delta Air Lines and Amtrak, has been on the board since May 2024 and will also chair the Executive and Strategy & Planning Committees. The board size was reduced to 12 members, and Jack Huffard was appointed as chair of the Compensation and Talent Management Committee. This leadership change is expected to continue driving Norfolk Southern’s strategic priorities and enhance value for shareholders, customers, and employees.

The most recent analyst rating on (NSC) stock is a Hold with a $275.00 price target. To see the full list of analyst forecasts on Norfolk Southern stock, see the NSC Stock Forecast page.

Norfolk Southern Board Chair Claude Mongeau Resigns

On June 2, 2025, Claude Mongeau resigned as Chair of Norfolk Southern‘s Board of Directors for personal reasons. Mongeau, who has been with the board since September 2019 and served as chair since May 2024, was praised for his leadership during challenging times and for strengthening the company. The board plans to appoint a new chair at its next meeting later in June 2025.

The most recent analyst rating on (NSC) stock is a Hold with a $275.00 price target. To see the full list of analyst forecasts on Norfolk Southern stock, see the NSC Stock Forecast page.

Norfolk Southern Holds Annual Shareholders Meeting

On May 8, 2025, Norfolk Southern Corporation held its Annual Meeting of Shareholders, where thirteen directors were elected for one-year terms. Additionally, shareholders ratified the appointment of KPMG LLP as the independent registered public accounting firm for 2025 and approved an advisory resolution on executive compensation.

Norfolk Southern Reports Strong Q1 2025 Results

On April 23, 2025, Norfolk Southern Corporation announced its first-quarter results for 2025, reporting a revenue of $3.0 billion and an income from railway operations of $1.1 billion. Despite weather-related disruptions, the company achieved an 8% growth in adjusted net income and earnings per share, and maintained its full-year guidance amidst macro-economic uncertainties. The operating ratio improved to 61.7%, and the company credited its team for overcoming challenges to enhance service performance and customer confidence. Adjustments for the Eastern Ohio incident showed an income from railway operations of $961 million and an operating ratio of 67.9%, with insurance recoveries exceeding incremental costs.