Fact based stock research
Norfolk Southern (NYSE:NSC)

US6558441084

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Norfolk Southern stock research in summary

nscorp.com

ANALYSIS: With an Obermatt Combined Rank of 26 (worse than 74% compared with investment alternatives), Norfolk Southern (Railroads, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Norfolk Southern are low in value (priced high) with a consolidated Value Rank of 32 (worse than 68% of alternatives), and are riskily financed (Safety Rank of 38, which means above-average debt burdens) but show above-average growth (Growth Rank of 53). ...read more

RECOMMENDATION: A Combined Rank of 26, is a hold recommendation based on Norfolk Southern's financial characteristics. As the company Norfolk Southern shows low value with an Obermatt Value Rank of 32 (68% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 53% of comparable companies (Obermatt Growth Rank is 53). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 38 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Norfolk Southern, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	32
Growth Rank	53
Safety Rank	38
Combined Rank	26

Country	USA
Industry	Railroads
Index	Low Emissions, Dividends USA, Low Waste, Recycling, S&P 500
Size class	X-Large

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Norfolk Southern

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	35	45	29	32
GROWTH
GROWTH	34	35	33	53
SAFETY
SAFETY	76	32	44	38
SENTIMENT
SENTIMENT	99	65	72	^new
360° VIEW
360° VIEW	74	27	26	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Norfolk Southern is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	35	45	29	32
GROWTH
GROWTH	34	35	33	53
SAFETY
SAFETY	76	32	44	38
COMBINED
COMBINED	39	23	23	26

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Norfolk Southern the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 32 (worse than 68% compared with alternatives), Norfolk Southern shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Norfolk Southern. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 76% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 7 which means that the stock price compared with what market professionals expect for future profits is higher than 93% of comparable companies, indicating a low value concerning Norfolk Southern's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 32 which means that the stock price compared with what market professionals expect for future profit levels is higher than 68% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 30 is also low. Compared with invested capital, the stock price is higher than for 70% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 32, is a hold recommendation based on Norfolk Southern's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Norfolk Southern? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Norfolk Southern only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	12	15	9	7
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	32	43	36	32
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	27	36	33	30
DIVIDEND YIELD
DIVIDEND YIELD	79	84	77	76
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	35	45	29	32

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Norfolk Southern; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 53 (better than 53% compared with alternatives), Norfolk Southern shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Norfolk Southern. Profit Growth has a rank of 84, which means that currently professionals expect the company to grow its profits more than 84% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 69 (above 69% of alternative investments). But Sales Growth has a below the median rank of 18, which means that, currently, professionals expect the company to grow less than 82% of its competitors, and Capital Growth also has a lower rank of 36. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 53, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Norfolk Southern. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	38	26	33	18
PROFIT GROWTH
PROFIT GROWTH	34	56	47	84
CAPITAL GROWTH
CAPITAL GROWTH	59	42	30	36
STOCK RETURNS
STOCK RETURNS	49	35	63	69
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	34	35	33	53

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Norfolk Southern.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 38 (better than 38% compared with alternatives), the company Norfolk Southern has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Norfolk Southern is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Norfolk Southern. Liquidity is at 58, meaning the company generates more profit to service its debt than 58% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 40, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 60% of its competitors. Leverage is also high at a rank of 30, which means that the company has an above-average debt-to-equity ratio. It has more debt than 70% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 38 (worse than 62% compared with alternatives), Norfolk Southern has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	50	34	36	30
REFINANCING
REFINANCING	97	37	42	40
LIQUIDITY
LIQUIDITY	56	45	64	58
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	76	32	44	38

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Norfolk Southern and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	46	49	^new
OPINIONS CHANGE
OPINIONS CHANGE	75	49	14	^new
PRO HOLDINGS
PRO HOLDINGS	88	86	100	^new
MARKET PULSE
MARKET PULSE	76	52	63	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	99	65	72	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Norfolk Southern.
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