Norfolk Southern Intrinsic Value Calculator – Investing in Norfolk Southern in 2024: Why Now is the Time to Build Wealth
December 30, 2023
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Investing in Norfolk Southern ($NYSE:NSC) in 2024 is an opportune moment to start building wealth. Norfolk Southern Corporation is a premier transportation company that operates one of North America’s most extensive rail networks. Norfolk Southern also provides logistics services such as truckload shipping, intermodal services, and warehousing and distribution services. Its customer base includes shippers from a variety of industries including chemicals, automotive, aerospace, paper and forest products, metals and construction materials, and agricultural products. Norfolk Southern’s growth potential lies in its strong financial performance, long-term investments in technology and infrastructure, and its strong commitment to safety and environmental stewardship. The company has a stellar track record of increasing shareholder value over the past few years. With its healthy balance sheet, strong cash flow, and steady dividend payments, Norfolk Southern is well-positioned for sustained growth.
However, the company has taken proactive steps to reduce costs and increase efficiency to mitigate the impact.
In addition, the company has taken proactive steps to diversify its business and expand its customer base. The strong demand for freight services is expected to remain solid in the coming years.
Market Price
On Thursday, NORFOLK SOUTHERN opened at $236.0 and closed at $236.5, up by 0.4% from the last closing price of 235.5. This is an indication of the company’s strong performance in the stock market and should be seen as a positive sign for investors looking to make a long-term investment. The company has been able to maintain its financial strength despite that fact that it has faced some economic headwinds in recent years. It has managed to reduce its debt levels and has continued to invest in its infrastructure and operations, which should have a positive effect on its future performance.
In addition, the company has made investments in technology to increase operational efficiency and cost savings. Norfolk Southern also has a strong focus on safety and security, which is important to consider when investing in any company. By investing in Norfolk Southern, investors can be assured that their money is safe and that the company will continue to thrive in the future. Investors can expect to see returns on their investment in the years to come and should feel that their money is safe when they invest in this company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Norfolk Southern. More…
| Total Revenues | Net Income | Net Margin |
| 12.32k | 2.09k | 23.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Norfolk Southern. More…
| Operations | Investing | Financing |
| 3.3k | -1.94k | -1.07k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Norfolk Southern. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 40.74k | 28.12k | 55.78 |
Key Ratios Snapshot
Some of the financial key ratios for Norfolk Southern are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.5% | 6.6% | 27.7% |
| FCF Margin | ROE | ROA |
| 9.3% | 16.9% | 5.2% |
Analysis – Norfolk Southern Intrinsic Value Calculator
GoodWhale has conducted an analysis of NORFOLK SOUTHERN‘s financials and calculated the fair value of its share to be around $278.9, using our proprietary Valuation Line. This means that the current market price of $236.5 is undervalued by 15.2%. This offers a great opportunity for potential investors to benefit from the undervalued stock as the price is expected to eventually move up to its fair value. More…
Peers
Norfolk Southern Corp is a publicly traded company on the New York Stock Exchange under the ticker symbol NSC. The company’s headquarters are located in Norfolk, Virginia. Norfolk Southern is one of the largest railroads in the United States. The company operates 19,500 miles of track in 22 states and the District of Columbia. Norfolk Southern employs 28,000 people. The company was founded in 1838.
Norfolk Southern’s main competitors are CSX Corp, Westshore Terminals Investment Corp, Canadian Pacific Railway Ltd.
– CSX Corp ($NASDAQ:CSX)
CSX Corporation is an American publicly traded company that operates as a Class I railroad in the United States. The company’s operating revenues and net income have both grown in recent years, and its market capitalization reached nearly $60 billion by early 2021. The company’s strong financial performance is due in part to its focus on efficiency and cost-cutting measures.
– Westshore Terminals Investment Corp ($TSX:WTE)
Westshore Terminals Investment Corp is a Canadian company that owns and operates a coal terminal on the west coast of Canada. The company has a market cap of 1.56B as of 2022 and a Return on Equity of 13.29%. The company’s terminal is the largest coal export facility in North America and handles nearly 30% of all thermal coal exports from the United States.
– Canadian Pacific Railway Ltd ($TSX:CP)
As of 2022, Canadian Pacific Railway Ltd has a market cap of 90.72B and a Return on Equity of 6.42%. The company operates a transcontinental railway in Canada and the United States, connecting major cities such as Vancouver, Toronto, and Chicago. CP is known for its efficiency and service, and is a major player in the freight transportation industry.
Summary
Norfolk Southern (NS) is an attractive investment opportunity in the railroad industry, especially for long-term investors. The company has seen strong performance over the past few years and is poised to benefit from further growth in the coming years. Its strong financial position and efficient operations should translate into above-average returns for shareholders in the coming years. NS has consistently delivered positive free cash flow, attractive dividend yields, and promising growth prospects.
The company’s ability to leverage its strong balance sheet to make acquisitions and secure new contracts should continue to drive value for shareholders. Despite headwinds in the industry, NS looks favorably positioned to benefit from its efficient operations and prudent capital allocation. Investors looking to add railroad stocks to their portfolios should consider Norfolk Southern.
