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Norfolk Southern

NYSE: NSC

Stock price

331.46 USD

(+15.68%) 5 years

Rail TransportationRailroads

Financial Performance

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5Y price score: 23

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The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.

A score of 100 indicates that the stock did as well as the S&P 500 Index.

A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.

10Y return: 300.3%

DATE RANGE:

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  • Free cash flow per share

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277.8

52-week range

358.6

331.46

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Required return / cost of capital
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FCFF terminal growth rate
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Valuation

Free Cash Flow Yield

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FCF Yield TTM = Trailing Twelve Months free cash flow per share / current market price per shareLearn more

4.2 %

Dividend Yield TTM

1.6 %

Market cap $

$ 74,449

Price / Earnings TTM

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P/E TTM = current market price per share / Trailing Twelve Months diluted earnings per shareLearn more

27.8

Price / Book TTM

4.4

PEG TTM

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Price/Earnings-to-Growth ratio = P/E TTM divided by most recent annual diluted earnings per share growth rateLearn more

2.7

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

16.7 %

24.5 %

300.3 %

Free cash flow per share growth

(14.7) %

14.9 %

493.7 %

Earnings per share growth

6.6 %

62.6 %

150 %

Founded: 1,881

Employees: 19,600

Business Summary:Norfolk Southern Corporation (NSC), operating through its various subsidiaries, is a prominent rail transport provider in the United States. The company's core business involves the conveyance of raw materials, semi-finished goods, and completed merchandise across the nation. Its extensive freight services cover a broad spectrum of commodities. This includes a variety of agricultural and forestry products like grains (e.g., soybeans, wheat, corn), fertilizers, animal feeds, and diverse foodstuffs such as oils, flour, sweeteners, beverages, and canned goods, alongside lumber and paper products. NSC also handles a wide range of chemicals, from sulfur and petroleum derivatives to chlorine compounds, plastics, industrial chemicals, and sand. Furthermore, the company moves metals and construction supplies, including steel, aluminum, heavy machinery, cement, aggregates, and specialized military equipment. Transportation of both finished motor vehicles and automotive components is a significant segment, as is the consistent shipment of coal. Beyond its principal freight operations, Norfolk Southern facilitates global trade by connecting with various Atlantic and Gulf Coast ports for overseas cargo. The corporation also manages an expansive intermodal network and offers commuter passenger rail services. As of the close of 2021, the company's vast railway infrastructure extended over roughly 19,300 route miles, serving 22 states and the District of Columbia. Norfolk Southern Corporation, originally incorporated in 1980, is based in Atlanta, Georgia.

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Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q3 (Oct 22, 2026)

1) Strong Financial Performance - Norfolk Southern reported a 14% overall revenue growth for Q3 2026, with a 6% increase in revenue less fuel, setting an all-time record. - Operating income increased by 7%, and net income and earnings per share both rose by 10%. - The operating ratio for the quarter was 65.4% after adjusting for merger-related expenses and costs from the Eastern Ohio incident.

2) Operational Improvements and Productivity - The company achieved a 12 percentage point increase in on-time origin performance, contributing to record productivity in a higher volume environment. - Workforce productivity reached a record high, with 3% carload growth and significant operational adjustments leading to 95 crew starts eliminated per week. - Norfolk Southern is investing in capital expenditures, increasing the outlook to $2.1 billion to enhance network resilience and efficiency.

3) Market Dynamics and Competitive Positioning - The tightening truck market has positively impacted rail competitiveness, with Norfolk Southern capturing increased customer demand. - The company anticipates that while current freight conversions from truck to rail are favorable, these gains may revert if fuel prices decline. - The merger with Union Pacific is expected to create a more competitive rail service, potentially enhancing long-term market share.

4) Challenges and Headwinds - Higher fuel prices have been a significant driver of increased costs, impacting the operating ratio negatively by about 250 basis points. - The company faces ongoing inflationary pressures in labor, health benefits, and insurance costs, which are expected to persist into 2027. - Despite operational improvements, there are concerns about maintaining service levels amidst rising volumes and the need for additional resources.

5) Guidance and Outlook - Norfolk Southern remains optimistic about the demand environment and expects to continue growing volumes and revenue. - The updated adjusted operating expense guidance for the full year is projected to be just above $9 billion, influenced by elevated fuel costs. - The company is focused on balancing growth with operational efficiency, with a commitment to safety and reliability as foundational priorities.

Bottom line: Norfolk Southern's strong Q3 performance reflects effective operational improvements and a favorable market environment, though challenges from rising fuel costs and inflation persist. The merger with Union Pacific is seen as a strategic move to enhance competitiveness and capture market share in the long term.

Annual Reports, Presentations And IR Contacts

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Norfolk Southern — Financial Overview, Stock Price, Market Cap

Norfolk Southern is a company. Founded in 1881. As of October 23, 2026, the company's market capitalization is $74448567680 with a current stock price of $331.46.