NYSE:NSC
$47.30
(2/9 2:38PM)
+2.1%
| Open | $47.27 |
Mkt Cap | $17.0 Billion |
| High | $47.75 |
52Wk High | $54.76 |
| Low | $46.93 |
52Wk Low | $26.69 |
| Volume | 1.3 Million |
Avg Vol 10D | 2.9 Million |
Ockham's Rating/Recommendation Summary
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NSC Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, NSC the high and low end of the Price to Sales per share ratios are 2.32x and 1.43x respectively.
Notice that NSC's current Price to Sales per share ratio is 2.17x, which is significantly above its historical average. This places NSC at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 16% merely to return NSC to its historical average.
NSC Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. NSC is below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for NSC to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 10.91 and a 6.69 low over the same period.
With a historical average Cash Earnings ratio of 8.80, the current Cash Earnings ratio of 8.58 is a positive opportunity for value in the Ockham view. Naturally, we would love to see a deeper value opportunity for NSC, but to get there one of two things must occur (or both). Either the stock price must decline further to increase the long term buying opportunity, or the management at NSC needs to earn more cash. If either, or both, of these occur, then we could see a significant gap emerge between what investors were willing to pay for in the past, and where NSC is trading currently (latest close price of $47.10).
NSC Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for NSC to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for NSC is $1.36 producing a current dividend yield of 2.89%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from NSC against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from NSC over previous years was 5.10% while the lowest dividend yield was 0.96%. Given this range, the current dividend yield for NSC is below its historical median and not terribly attractive from this perspective.
Stay Current on NSC's News on Fast Money
News has broken via the television and viral blogs regarding NSC, so investors should take an interest in learning what was said.
Norfolk Southern Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; NSC has received less coverage from the financial media in business television and blogs.
“… NORFOLK SOUTHERN down. > > we just talked about that. The rails have been drops. I think they can drop a little bit further. I still think they have further to go. > > …”
NSC's EPS discussed on Seeking Alpha Wall St Breakfast
Whenever news breaks regarding earnings or earnings per share data, we pay close attention.
Norfolk Southern Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; NSC has received less coverage from the financial media in business television and blogs. The latest news on NSC has created quite a stir as the stock is trading $3.33 higher in today's session.
“… (PR) NORFOLK SOUTHERN (NSC): Q4 EPS of $0. 82 misses by $0. 02. Railway operating revenue of $2. 1B (-16%) in-line. Shares -1. 4% AH. …”
Closing Bell Has the Latest News on NSC
As always, the latest news on NSC is available to Ockham clients through RazorWire, and it was mentioned recently on Closing Bell.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, NSC has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Norfolk Southern Corporation will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on NSC.
“… come come NORFOLK SOUTHERN and dozens of other small cap names will close. Cnbc's matt nesto takes a look at what's moving ahead of the news. > > …”
Norfolk Southern Corporation Was Talked About by Fox Business
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on NSC from Fox Business.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. The Ockham valuation currently has a Fairly Valued stance on NSC because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Norfolk Southern Corporation has actually sunk a bit in comparison to the others.
“… Yesterday I sold NORFOLK SOUTHERN entirely from my clients' portfolios. You know what? I love NORFOLK SOUTHERN. I think it is a fabulous company and fabulous industry. …”
Closing Bell Discussed the Latest Development of Norfolk Southern Corporation
The latest news on Closing Bell in regards to NSC came through on RazorWire recently.
The Motley Fool CAPS data suggests that investors believe Norfolk Southern Corporation will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, NSC has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on NSC.
“… Csx on NORFOLK SOUTHERN, union pacific, kansas city, all trading lower here today. Burlington northern bought today by berkshire. …”
See More News on NSC from Street Signs
Norfolk Southern Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Street Signs.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Norfolk Southern Corporation has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on NSC because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… And also coal names which coal typically will trade with nat gas like consol energy and by proxy, a company like NORFOLK SOUTHERN that ships the coal to northeastern utilities. …”
Holding NSC Stock? See What Is Being Discussed on Mad Money
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Norfolk Southern Corporation.
Norfolk Southern Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; NSC has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… to show you just how important it is to follow the transports. Stocks like fedex as well as rails like NORFOLK SOUTHERN. …”
RazorWire has Detected News About NSC on Power Lunch
As always, the latest news on NSC is available to Ockham clients through RazorWire, and it was mentioned recently on Power Lunch.
The Ockham valuation currently has a Fairly Valued stance on NSC because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Norfolk Southern Corporation has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… We're talking about the likes of pepsico, network appliances, and NORFOLK SOUTHERN. Network apply lanceiances higher by more than 3%. > > i'm tyler mathisen. …”
NSC in Developing Markets on Power Lunch
News related to emerging markets affecting Norfolk Southern Corporation today, and Power Lunch discussed some recent developments.
Going and do you like the sector and are there any interesting >> I like to transport sector. For me, i'm long NORFOLK SOUTHERN, nfc. I really think that whole rail play is really a china play. I know you talked about it last night on "fast money," but I like the rails. It kind of goes to how good the retailers might do. >> this is the exact corollary I wanted to ask jim about. Amazon, a new, 52-week high. Does this mean though that the
“… like the rails. It kind of goes to how good the retailers might do. >> this is the exact corollary I wanted to ask jim about. Amazon, a new, 52-week high. Does this mean though that the …”
NSC News Mentioned on Closing Bell Recently
>> we're going to leave it thanks to both of you for joining us. Bob pisani has breaking news. >> let's put up union pacific and NORFOLK SOUTHERN here, melissa. According to a regulatory filing, mr. Buffett is going to sell his union pacific and you can see that stock's this is an intraday chart. Put up NORFOLK SOUTHERN as you can see that. It's not clear whether he will sell his entire stake or not. We'll get more information on both of these stocks coming off the highs. The markets still holding up, though, melissa. >>> the bulls still firmly in charge here. The dow up 182 points. S&p up 21.
“… ee that stock's this is an intraday chart. Put up NORFOLK SOUTHERN as you can see that. It's not clear whether he will sell his entire stake or not. We'll get more information on both of these stocks coming off the highs. The markets still holding up, though, melissa. >>> the bulls still firmly in charge here. The dow up 182 points. S&p up 21. …”