Norfolk Southern Corp.
NSC
Market Cap$49.74B
Close$
Earnings Call Q4 2024
January 29, 2025 - AI Summary
Strong Q4 Performance: Norfolk Southern closed out 2024 with solid financial results, delivering a 3% increase in volume and a 2% revenue increase (excluding fuel), driven by improved operational efficiencies and safety metrics. The adjusted operating ratio (OR) ended at 65.8, surpassing initial guidance.
2025 Revenue Growth Outlook: Management is forecasting 3% revenue growth for 2025, attributing it to positive volume increases and healthy core pricing, while also contending with headwinds from fuel surcharges and declining coal prices. The expectation is for volume growth driven by intermodal and merchandise markets, with coal remaining a weak spot.
Productivity Improvements: The company is targeting to exceed a $150 million productivity improvement goal for 2025, building on 2024's nearly $300 million in cost reductions. Management emphasized a focus on increasing asset utilization, reducing overtime, and optimizing operations to improve the adjusted OR consistently.
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$171.88
21.5% downside
Current Fair Value
21.5% downsideOvervalued by 21.5% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $49.74 Billion |
|---|---|
| Enterprise Value | $65.91 Billion |
| Dividend Yield | $5.4 (2.45633187772926%) |
| Earnings per Share | $11.6 |
| Beta | 1.3 |
| Outstanding Shares | 226,200,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 17.87 |
|---|---|
| PEG | 45.73 |
| Price to Sales | 4.13 |
| Price to Book Ratio | 3.48 |
| Enterprise Value to Revenue | 5.44 |
| Enterprise Value to EBIT | 19.43 |
| Enterprise Value to Net Income | 23 |
| Total Debt to Enterprise | 0.27 |
| Debt to Equity | 1.25 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Norfolk Southern Corp.
CEO: James Squires