NYSE:NSC
$55.33
(3/19 4:00PM)
-0.6%
| Open | $55.71 |
Mkt Cap | $20.5 Billion |
| High | $56.17 |
52Wk High | $56.17 |
| Low | $54.98 |
52Wk Low | $32.99 |
| Volume | 3.2 Million |
Avg Vol 10D | 2.0 Million |
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 2.66x and 1.62x respectively.
Notice that NSC's current Price to Sales per share ratio is 2.53x, which is high enough compared with historical norms of NSC to cause some concern. The current Price to Sales per share is near the upper end of the historical range. In our eyes, this is a negative factor because it is more likely that it will return to the normal range than continue rising outside of the range. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 17% 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 above 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 12.01 and a 7.35 low over the same period.
So when we look at NSC, what does this slightly higher than historical level of Price to Cash Earnings mean? From the Ockham perspective, it basically represents that the market has a higher stock price attributed to this level of Cash Earnings than compared to normal. So while we view this as a negative from a valuation perspective, it certainly doesn't mean that NSC couldn't rapidly improve in its value from other factors or a decline in stock price. The current Price to Cash Earnings level of 10.72 is 10% above the historical norm as calculated at Ockham. So a decline in stock price, or more hopefully, an increase in NSC's Cash Earnings levels would improve our outlook for the stock.
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 2.50%. 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 5.08% while the lowest dividend yield was 0.96%. While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as NSC that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 17.22% below the median yield.
Fast Money Discusses Higher Prices and Norfolk Southern Corporation
When a stock reaches a notable high point, investors have to ask themselves: take profits or let it run? See what Fast Money recommends for Norfolk Southern Corporation and obviously Ockham has an opinion as well.
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.
“… We had some upgrades not long ago from the NORFOLK SOUTHERN and all the rest of it. I own NORFOLK SOUTHERN. I like it. It's at a 52-week high. …”
Analyst Opinion on NSC the Topic for Squawk On The Street
When the television or blog talks about an analysts' opinion it could have a major impact on the stock.
In comparison to the other stocks that we follow, Norfolk Southern Corporation has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. 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.
“… NORFOLK SOUTHERN overweight from equal weight to barclays capital. Increasing the price target to $62 from $55. Aeropostale upgraded to buy. …”
News on NSC From the Pundits on Fox Business
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on NSC from Fox Business.
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 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.
“… NORFOLK SOUTHERN we just talked about. Nucor is a great company at a great price. The list goes on and on. I mean ge is in there. …”
Income Investors: A Discussion of NSC and Dividends on Fox Business
Dividends are a management decision and can be seen as a signal of strength or weakness depending on the latest news. RazorWire captured a discussion of NSC's dividends recently on Fox Business.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. 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.
“… NORFOLK SOUTHERN is one that I like. Outside of burlington northern, they don't trade with that warren buffett premium anymore. …”
News on NSC From the Pundits on Fox Business
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.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. 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.
“… NORFOLK SOUTHERN, nucor, caterpillar, there's a long list that's out there. Cheryl: here's the s&p. You are looking at 985, 1035 -- > > the range i'm looking for is 985 to ... …”
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. > > …”
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. …”