ScoreWhy is Norfolk Southern Corp. ?
1
Poor long term growth as Operating profit has grown by an annual rate 4.71% of over the last 5 years
2
With ROCE of 14.29%, it has a expensive valuation with a 2.53 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 18.93%, its profits have risen by 114.5% ; the PEG ratio of the company is 0.2
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Norfolk Southern Corp. should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Norfolk Southern Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Norfolk Southern Corp.
33.04%
1.33
22.98%
S&P 500
27.0%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.47%
EBIT Growth (5y)
3.13%
EBIT to Interest (avg)
5.43
Debt to EBITDA (avg)
2.99
Net Debt to Equity (avg)
1.12
Sales to Capital Employed (avg)
0.39
Tax Ratio
22.40%
Dividend Payout Ratio
42.36%
Pledged Shares
0
Institutional Holding
73.82%
ROCE (avg)
13.59%
ROE (avg)
19.29%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
4.58
EV to EBIT
22.11
EV to EBITDA
16.35
EV to Capital Employed
2.75
EV to Sales
7.17
PEG Ratio
NA
Dividend Yield
1.72%
ROCE (Latest)
12.46%
ROE (Latest)
17.74%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 99.72 %
RAW MATERIAL COST(Y)
Fallen by 1.94% (YoY
CASH AND EQV(HY)
Highest at USD 2,871 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 10.35 times
-3What is not working for the Company
PRE-TAX PROFIT(Q)
Lowest at USD 777 MM
NET PROFIT(Q)
Lowest at USD 593.43 MM
EPS(Q)
Lowest at USD 2.43
Here's what is working for Norfolk Southern Corp.
Debt-Equity Ratio
Lowest at 99.72 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Cash and Eqv
Highest at USD 2,871 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 10.35 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by 1.94% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Norfolk Southern Corp.
Pre-Tax Profit
Lowest at USD 777 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 593.43 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 2.43
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
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