Class I railroad Norfolk Southern operates in the Eastern United States. On more than 20,000 miles of track, the rail hauls shipments of coal, intermodal traffic, and a diverse mix of automotive, agricultural, metal, chemical, and forest products.
It is a $71.4B industrial company. Revenue grew 3.0% over the last year, it keeps 21¢ of every dollar of sales as profit, and its net debt equals ~9.5 years of free cash flow. It trades at 27.1× earnings — in the most expensive third of its own history.
- Website
- norfolksouthern.com
- Location
- Atlanta, GA
- Employees
- 19 300
- Sector
- Industrials
- Founded
- 1980
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong profitability and quality; Valuation, Growth and Health lag behind.
Valuation29
- P/E vs own history83th pct · 0/25
- FCF yield2.3% · 5/25
- P/S5.7x · 12/25
- EV/EBITDA16.0x · 12/25
Growth46
- Revenue CAGR2.3% · 6/25
- Net income CAGR-1.1% · 0/25
- EPS CAGR ~5Y10.2% · 20/25
- Fwd implied growth20.1% · 20/25
Profitability82
- ROIC9.2% · 12/25
- ROE16.8% · 20/25
- Net margin21.0% · 25/25
- Operating margin32.2% · 25/25
Health47
- Altman Z2.19 · 18/25
- Current ratio0.83 · 6/25
- Interest coverage5.7x · 18/25
- Net cash / debtD/A 34% · 5/25
Quality82
- Piotroski F7/9 · 22/25
- Beneish M-2.59 · 25/25
- FCF conversion62% · 15/25
- Margin stabilityσ 5.9% · 20/25
Moat69
- ROIC >12% years3/10 yrs · 6/25
- Median gross margin35.3% · 13/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 15.0% · 25/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- Jul 29, 2025AcquisitionThe Union Pacific Railroad announced plans to acquire Norfolk Southern in a deal worth $85 billion
- 2023MilestoneNorfolk Southern became the first major North American railroad to offer sick time to all union workers
- Dec 6, 2022ProductNorfolk Southern announced a new service-and-growth plan to maintain its train crew levels…
- FY2017FinancialRevenue crossed $10B$10.6B for the year
- FY2017FinancialBest year on record$5.40B net income
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $1B$9.89B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 1987IPOStanley Crane proposed an initial public offering to privatize the company
- 1982AcquisitionHeadquartered in Atlanta, the company was formed in 1982 with the merger of the Norfolk and Western Railway and…
- Jul 23, 1980FoundedNorfolk Southern Corporation was incorporated in Virginia on July 23, 1980
- 1953MilestoneProfitable and innovative, Southern became, in 1953, the first major US railroad to completely switch to…
- 1894Acquisition) and Norfolk & Western Railway (N&W, formed in 1881) quickly…
- 1870MilestoneAfter the Civil War, it became part of the Atlantic, Mississippi & Ohio Railroad (AM&O), a trunk line across…
- 1854AcquisitionIt was acquired by the South Side Railroad in 1854
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (48.5%)
- Strongly profitable — 21.0% net margin
- Interest covered 5.7× by operating earnings
- Piotroski F-Score 7/9 — fundamentally strong checklist
Watch-outs
- Net debt would take ~9.9 years of free cash flow to repay
- Net debt equals ~9.5 years of free cash flow
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+3.0% YoY
- Profitable — makes more than it spends$2.64B TTM
- Profit growing — earnings are higher than last year-2.7% YoY
- Generates cash — cash left after running and investing$1.63B TTM
- Debt under control — could handle its obligations~9.5y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$71.4B market cap
- Not printing shares — share count not ballooning — you keep your slice-12.2% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distressAltman Z 2.2 — grey
- Pays a dividend — returns cash to shareholdersyield 1.70%
- Valuation not extreme — price not wildly above earningsP/E 27.1
Peer comparisonNorfolk Southern Corp. vs 6 largest industrials peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| NSC this company | $71.4B | 27.1 | +3.0% | 21.0% | Mixed |
| LRCX Lam Research Corp | $399.2B | 54.9 | +26.0% | 31.3% | Strong |
| CAT Caterpillar Inc. | $368.0B | 33.9 | +18.4% | 14.5% | Solid |
| RTX RTX Corporation | $251.3B | 32.4 | +11.8% | 8.3% | Strained |
| DE Deere & Company | $167.7B | 34.4 | +8.3% | 10.2% | Solid |
| ETN Eaton Corporation, plc | $167.2B | 43.6 | +15.5% | 12.8% | Mixed |
| UNP Union Pacific Corp. | $166.8B | 22.6 | +4.2% | 28.8% | Strained |
Head-to-head: NSC vs LRCX · NSC vs CAT · NSC vs RTX
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/NSC
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of NSC on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $317.79 · market cap $71.4B.