Norfolk Southern Corporation Fundamental Analysis (XETRA: NFS.DE)
Norfolk Southern Corporation (XETRA: NFS.DE) shows moderate financial fundamentals with a PE ratio of 28.68, profit margin of 21.03%, and ROE of 16.80%. The company generates $12.5B in annual revenue with weak year-over-year growth of 0.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NFS.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakNFS.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateNFS.DE shows balanced valuation metrics.
Growth Score
ModerateNFS.DE shows steady but slowing expansion.
Financial Health Score
WeakNFS.DE carries high financial risk with limited liquidity.
Profitability Score
ExcellentNFS.DE achieves industry-leading margins.
Key Financial Metrics
Is NFS.DE Expensive or Cheap?
P/E Ratio
NFS.DE trades at 28.68 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NFS.DE's PEG of -1.23 indicates potential undervaluation.
Price to Book
The market values Norfolk Southern Corporation at 4.65 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.68 times EBITDA. This signals the market has high growth expectations.
How Well Does NFS.DE Make Money?
Net Profit Margin
For every $100 in sales, Norfolk Southern Corporation keeps $21.03 as profit after all expenses.
Operating Margin
Core operations generate 33.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.80 in profit for every $100 of shareholder equity.
ROA
Norfolk Southern Corporation generates $5.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Norfolk Southern Corporation generates strong operating cash flow of $3.73B, reflecting robust business health.
Free Cash Flow
Norfolk Southern Corporation generates strong free cash flow of $1.63B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.25 in free cash annually.
FCF Yield
NFS.DE converts 2.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How NFS.DE Stacks Against Its Sector Peers
| Metric | NFS.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.68 | 27.30 | Neutral |
| ROE | 16.80% | 1167.00% | Weak |
| Net Margin | 21.03% | 44.00% | Weak |
| Debt/Equity | 1.02 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.83 | 21.98 | Weak Liquidity |
| ROA | 5.84% | -1343549.00% (disorted) | Weak |
NFS.DE outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Norfolk Southern Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.20%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
61.96%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
36.07%
Industry Style: Cyclical, Value, Infrastructure
High Growth