Norfolk Southern Corp. (NSC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Norfolk Southern Corp.

Why is Norfolk Southern Corp. ?

Poor long term growth as Operating profit has grown by an annual rate 4.71% of over the last 5 years

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 Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Norfolk Southern Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Norfolk Southern Corp.

29.31%

1.33

22.98%

S&P 500

12.95%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

73.82%

ROCE (avg)

13.59%

ROE (avg)

19.29%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.22

EV to EBIT

21.23

EV to EBITDA

16.17

EV to Capital Employed

3.02

EV to Sales

7.66

PEG Ratio

0.33

Dividend Yield

1.59%

ROCE (Latest)

14.23%

ROE (Latest)

21.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 4,361 MM

DEBT-EQUITY RATIO (HY)

Lowest at 104.9 %

DEBTORS TURNOVER RATIO(HY)

Highest at 11.84 times

-9What is not working for the Company

NET PROFIT(HY)

At USD 1,411.77 MM has Grown at -25.64%

INTEREST COVERAGE RATIO(Q)

Lowest at 632.31

RAW MATERIAL COST(Y)

Grown by 18.64% (YoY

NET SALES(Q)

Lowest at USD 2,974 MM

OPERATING PROFIT(Q)

Lowest at USD 1,233 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 41.46 %

EPS(Q)

Lowest at USD 2.87

Here's what is working for Norfolk Southern Corp.

Operating Cash Flow

Highest at USD 4,361 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at 104.9 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 11.84 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at USD 353 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Norfolk Southern Corp.

Interest Coverage Ratio

Lowest at 632.31

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At USD 1,411.77 MM has Grown at -25.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Net Sales

Lowest at USD 2,974 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 1,233 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 41.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at USD 2.87

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 18.64% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.18 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income