Norfolk Southern Corporation [NYSE: NSC] shares went lower by -1.37% from its previous closing of $199.23, now trading at the price of $196.51, also adding -2.72 points. Is NSC stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 1.75 million contracts. Compared to the average trading volume of NSC shares, the company saw a far better performance. Moreover, the stock has a 265.70M float and a -1.68% run over in the last seven days. NSC share price has been hovering between $211.46 and $138.65 lately, and is definitely worthy of attention.
Norfolk Southern Corporation [NYSE:NSC]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Norfolk Southern Corporation [NSC], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in December. On average, stock market experts give NSC an Outperform rating. Its stock price has been found in the range of 138.65 to 211.46. This is compared to its latest closing price of $199.23.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Norfolk Southern Corporation [NSC] is sitting at 2.23. This is compared to 1 month ago, when its average rating was 2.23.
For the quarter ending in Mar-19 Norfolk Southern Corporation [NSC] generated $2.84 billion in sales. That’s 0.59% higher than the average estimate of $2.82 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Wed 24 Jul (In 40 Days).
Fundamental Analysis of Norfolk Southern Corporation [NSC]
Now let’s turn to look at profitability: with a current Operating Margin for Norfolk Southern Corporation [NSC] sitting at +34.55 and its Gross Margin at +34.55, this company’s Net Margin is now 24.00%. These measurements indicate that Norfolk Southern Corporation [NSC] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 14.87, and its Return on Invested Capital has reached 11.90%. Its Return on Equity is 16.77, and its Return on Assets is 7.32. These metrics all suggest that Norfolk Southern Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Norfolk Southern Corporation [NSC] has generated a Total Debt to Total Equity ratio of 74.37. Similarly, its Total Debt to Total Capital is 42.65, while its Total Debt to Total Assets stands at 31.20. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 70.56, and its Long-Term Debt to Total Capital is 40.47. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 12.86 and its Total Debt to EBITDA Value is 2.26. The Enterprise Value to Sales for this firm is now 5.62, and its Total Debt to Enterprise Value stands at 0.22. Norfolk Southern Corporation [NSC] has a Price to Book Ratio of 2.61, a Price to Cash Flow Ratio of 11.25 and P/E Ratio of 19.46. These metrics all suggest that Norfolk Southern Corporation is more likely to generate a positive ROI.
Similarly, this company’s Receivables Turnover is 11.67 and its Total Asset Turnover is 0.32. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.64 and its Current Ratio is 0.72. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Norfolk Southern Corporation [NSC] has 267.10M shares outstanding, amounting to a total market cap of $52.49B. Its stock price has been found in the range of 138.65 to 211.46. At its current price, it has moved down by -7.07% from its 52-week high, and it has moved up 41.73% from its 52-week low.
This stock’s Beta value is currently 1.37, which indicates that it is 2.35% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 45.34. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Norfolk Southern Corporation [NSC] a Reliable Buy?
Shares of Norfolk Southern Corporation [NSC], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.