Norfolk Southern engages in the rail transportation of raw materials, intermediate products, and finished goods. The Company's system reaches various individual industries, electric generating facilities, mines, distribution centers, transload facilities and other businesses located in its service area. The company was founded in 1883 and is based Norfolk, Virginia.
NSC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Norfolk Southern Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Norfolk Southern Corp ranked in the 43th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Norfolk Southern Corp ended up being:
The company's balance sheet shows it gets 79% of its capital from equity, and 21% of its capital from debt. Its equity weight surpasses that of 58.36% of free cash flow generating stocks in the Industrials sector.
Norfolk Southern Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 23.46% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AVY, NNBR, ZNH, BKNG, and WCN can be thought of as valuation peers to NSC, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Norfolk Southern Corporation (NYSE: NSC ) is planning to add more intermodal service products in the Southern U.S. as a way to take volume away from the trucking market, executives said during the company's second-quarter earnings call on Wednesday, July 29. Those products, which could be launched as early as the third quarter of this year, include products between the U.S. Southwest and the U.S. Southeast, as well as between the U.S. Southeast to the U.S. Northeast, said NS Chief Marketing Officer Alan Shaw. "They are a new level of product that is not out there in the marketplace right now, or had not been. We're confident that…it's going to help us grow moving forward," Shaw said. Railroad executives said NS is seeking to take advantage of higher spot truck prices and tight truck mar...
Norfolk Southern (NSC) reports railway operating revenues fell 29% Y/Y to $2.1B, driven by a 26% decline in total volume. The company's operating ratio was 70.7% vs. 70.6% consensus. "Underscoring our commitment to shareholder value, we forged ahead with our ongoing transformation by further reducing our hump yard footprint, achieving...
Norfolk Southern's (NYSE: NSC ) net profits for the second quarter slipped 46% to $392 million, or $1.53 in diluted earnings per share, compared with $722 million, or $2.70 in diluted earnings per share, in the second quarter of 2019. A 26% decline in rail volumes contributed to the drop in profits year-over-year. Operating revenues fell 29% to $2.1 billion. Meanwhile, operating expenses slipped 21% to $1.5 billion on lower expenses for fuel, compensation and benefits and purchased services. Income from railway operations was $610 million, a 43% drop from nearly $1.07 billion in the second quarter of 2019. The profit decline in the second quarter … Full story available on Benzinga.com