Why 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 8.86%, its profits have risen by 114.5% ; the PEG ratio of the company is 0.2
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.
10.28%
1.32
23.29%
S&P 500
13.22%
0.64
20.20%
Quality key factors
Factor
Value
Sales Growth (5y)
3.53%
EBIT Growth (5y)
4.71%
EBIT to Interest (avg)
5.43
Debt to EBITDA (avg)
2.99
Net Debt to Equity (avg)
1.12
Sales to Capital Employed (avg)
0.41
Tax Ratio
22.40%
Dividend Payout Ratio
46.66%
Pledged Shares
0
Institutional Holding
81.74%
ROCE (avg)
13.59%
ROE (avg)
19.29%
Valuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
4.25
EV to EBIT
17.73
EV to EBITDA
13.53
EV to Capital Employed
2.53
EV to Sales
6.43
PEG Ratio
0.17
Dividend Yield
1.99%
ROCE (Latest)
14.29%
ROE (Latest)
22.32%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Mildly Bullish
Technical Movement
10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 4,204 MM
NET PROFIT(HY)
At USD 1,345.66 MM has Grown at 52.11%
ROCE(HY)
Highest at 24.11%
DEBT-EQUITY RATIO
(HY)
Lowest at 108.64 %
NET SALES(Q)
Highest at USD 3,110 MM
-2What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 25.08 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 10.53 times
Here's what is working for Norfolk Southern Corp.
Net Profit
At USD 1,345.66 MM has Grown at 52.11%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Operating Cash Flow
Highest at USD 4,204 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 3,110 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Debt-Equity Ratio
Lowest at 108.64 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Norfolk Southern Corp.
Inventory Turnover Ratio
Lowest at 25.08 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 10.53 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






