NSC

Industrials

Norfolk Southern Corporation · Railroads · $71B

UQS Score — Balanced Preset
47.9
Below Average

Norfolk Southern Corporation scores 47.9/100 using the Balanced preset.

UQS vs Industrials Sector
NSC
47.9
Sector avg
42.4
Quality
Good
Moat
Neutral
Growth
Weak
Risk
Weak
Valuation
Elevated

What is Norfolk Southern Corporation?

Norfolk Southern Corporation is one of the largest freight railroad operators in the eastern United States, moving a wide range of goods across a vast rail network. Incorporated in 1982 and headquartered in Atlanta, Georgia, the company serves customers across 22 states and the District of Columbia.

Norfolk Southern generates revenue by transporting raw materials, intermediate products, and finished goods by rail. Its network connects manufacturers, agricultural producers, chemical companies, and automotive suppliers to markets across the eastern US and through Atlantic and Gulf Coast ports for international freight. The company also operates an intermodal network and provides commuter rail passenger services, giving it exposure to both freight and transit revenue streams.

Norfolk Southern was incorporated in 1982 and is headquartered in Atlanta, Georgia.

  • Freight rail transportation across 22 eastern US states
  • Intermodal network connecting rail and truck shipping
  • Agricultural and consumer goods transport
  • Chemicals, metals, and construction materials hauling
  • Automotive and coal freight services

Is NSC a Good Stock to Buy?

UQS Score rates NSC as Below Average overall, reflecting meaningful headwinds across several key dimensions.

The Quality pillar stands out as the relative bright spot, suggesting the underlying business retains some operational durability. The Valuation pillar comes in as Neutral, meaning the stock is not obviously mispriced relative to its fundamentals at current levels.

Growth and Risk are both rated Weak — the two pillars that most directly affect near-term investor outcomes. The Moat pillar registers as Neutral, indicating the company's competitive positioning is not a clear differentiator at this time.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does NSC pay dividends?

Yes — Norfolk Southern Corporation pays a dividend.

Norfolk Southern pays a regular dividend, which is common among large, capital-intensive rail operators that generate relatively predictable cash flows. For income-oriented investors, the dividend provides a return component independent of share price movement. That said, dividend sustainability should always be evaluated alongside the company's Risk and Growth profiles, both of which are currently rated Weak.

When does NSC report earnings?

Norfolk Southern reports earnings on a quarterly cadence, consistent with standard practice for US-listed public companies.

The company's current UQS pillar profile — particularly Weak Growth and Weak Risk ratings — suggests recent results have faced pressure. Investors should monitor freight volume trends and operating ratio improvements as key indicators of trajectory.

For the most recent quarter's results and guidance, visit Norfolk Southern's investor relations page directly.

NSC Price History

+19.0% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Norfolk Southern Corporation?

$
Today it would be worth
$12,270
That's a +22.7% total return, or +4.2% annualized.

Based on Norfolk Southern Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

NSC Long-term Outlook

Norfolk Southern's fundamental outlook is shaped by its Weak Growth and Weak Risk pillar ratings, pointing to a challenging near-term environment. Rail freight demand is closely tied to broader industrial activity, and softness in key end markets — including coal and chemicals — can weigh on volume growth. The Neutral Moat rating suggests the company's network advantages exist but may not be sufficient to fully offset cyclical or operational pressures in the current period.

Growth drivers

  • Intermodal network expansion connecting rail and truck freight
  • Recovery in industrial and agricultural freight volumes
  • Operational efficiency improvements across the rail network

Key risks

  • Weak Risk pillar signals elevated financial or operational vulnerability
  • Cyclical freight demand tied to broader US industrial output
  • Competitive pressure from other eastern rail operators

NSC vs Peers

Norfolk Southern operates in a concentrated freight rail industry alongside a small number of large competitors, each with distinct geographic footprints and strategic priorities.

CNINSC scores lower
Canadian National Railway Company

Canadian National spans coast-to-coast across Canada with deep US connections, giving it a broader continental reach than NSC's eastern US focus.

CPSimilar UQS
Canadian Pacific Kansas City Ltd.

Following its merger with Kansas City Southern, CPKC is the only single-line rail network connecting Canada, the US, and Mexico, a unique cross-border positioning.

CSXNSC scores lower
CSX Corporation

CSX is Norfolk Southern's most direct eastern US rival, competing for many of the same freight corridors and industrial customers across overlapping geographies.

Frequently Asked Questions

What does Norfolk Southern do?

Norfolk Southern is a major freight railroad operator in the eastern United States. It transports raw materials, agricultural products, chemicals, metals, automotive goods, and coal across roughly 19,300 route miles in 22 states. The company also operates an intermodal network and provides commuter rail passenger services.

Does NSC pay dividends?

Yes, Norfolk Southern pays a regular dividend. This is typical for large rail operators that generate relatively stable cash flows from freight transportation. Investors should weigh the dividend against the company's current Weak Risk and Weak Growth pillar ratings when assessing income sustainability.

When does NSC report earnings?

Norfolk Southern reports earnings quarterly, in line with standard US public company practice. For exact dates and the most recent results, check the investor relations section of Norfolk Southern's official website.

Is NSC a good stock to buy?

UQS Score rates NSC as Below Average overall. While the Quality pillar shows some resilience, the Growth and Risk pillars are both rated Weak, which presents meaningful concerns for investors. The full pillar breakdown is available to Pro members on UQS Score.

Is NSC overvalued?

The UQS Valuation pillar for NSC is rated Neutral, suggesting the stock is neither clearly cheap nor obviously expensive relative to its fundamentals. Valuation context is most useful when read alongside the other four pillars — view the complete analysis on UQS Score.

How does NSC compare to its competitors?

Norfolk Southern competes primarily with CSX in the eastern US, and faces broader competition from Canadian National and Canadian Pacific Kansas City. Each rival has distinct geographic strengths. UQS Score provides side-by-side pillar comparisons for all major rail operators for Pro members.

What is NSC's market cap bracket?

Norfolk Southern is classified as a large-cap stock, reflecting its scale as one of the dominant freight rail operators in the eastern United States. Large-cap status generally implies greater liquidity and institutional coverage compared to smaller peers.

Who founded Norfolk Southern?

Norfolk Southern Corporation was incorporated in 1982 through the merger of Norfolk and Western Railway and Southern Railway. The combined entity brought together two historic rail systems with deep roots in eastern US freight transportation. Further founding history is widely available through public sources.

Is NSC a long-term quality investment?

As a long-term quality indicator, NSC's UQS profile is mixed. The Quality pillar shows some durability, but Weak Growth and Weak Risk ratings are important considerations for long-term holders. Long-term quality investing benefits from reviewing all five pillars together — available in full on UQS Score.

What is the main competitive advantage of Norfolk Southern?

Norfolk Southern's primary advantage is its extensive rail network across the eastern US — a physical infrastructure that is extraordinarily difficult and costly to replicate. However, the UQS Moat pillar rates this advantage as Neutral, suggesting it may not be translating into outsized financial returns at present.

What sector does NSC belong to?

Norfolk Southern belongs to the Industrials sector, specifically within freight transportation and rail. Rail stocks in this sector are generally sensitive to economic cycles, industrial production levels, and commodity demand — all factors reflected in NSC's current UQS pillar profile.

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Pro Analysis

NSC — Score History

40455055Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 15 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202647.971.354.029.433.837.2+0.1
May 17, 202647.871.354.029.433.837.2-1.5
May 7, 202649.375.354.029.034.140.8-0.1
May 4, 202649.475.354.029.034.140.9+0.1
May 3, 202649.375.354.028.934.140.90.0
Apr 26, 202649.375.354.028.834.140.6+0.1
Apr 25, 202649.275.354.027.234.142.1+0.1
Apr 19, 202649.175.354.026.934.142.1-0.1
Apr 18, 202649.275.354.026.934.142.7+1.1
Apr 12, 202648.175.354.026.934.135.2-0.1

NSC — Pillar Breakdown

Quality

71.3/100 (25%)

Norfolk Southern Corporation shows solid profitability with healthy returns on capital and reasonable margins.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityStrong

Ability to convert revenue into operating profit.

Net ProfitabilityStrong

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationModerate

Free cash flow relative to market value.

Growth

29.4/100 (20%)

Norfolk Southern Corporation faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthModerate

Year-over-year earnings per share growth.

Forward Revenue OutlookModerate

Analyst consensus for future revenue growth.

Forward EPS GrowthWeak

Analyst consensus for future earnings growth.

Risk

33.8/100 (15%)

Norfolk Southern Corporation presents elevated risk with concerns around leverage or financial stability.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityModerate

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

37.3/100 (15%)

Norfolk Southern Corporation has a mixed valuation — some metrics suggest fair value while others appear stretched.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowModerate

How many years of FCF the market cap represents.

PEG RatioWeak

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorModerate

Enterprise value multiple relative to sector median.

Moat

54/100 (25%)

Norfolk Southern Corporation possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for NSC.

Score Composition

Quality
71.3×25%17.8
Growth
29.4×20%5.9
Risk
33.8×15%5.1
Valuation
37.3×15%5.6
Moat
54.0×25%13.5
Total
47.9Below Average

Financial Data

More Stock Analysis

How is the NSC UQS Score Calculated?

The UQS (Unified Quality Score) for Norfolk Southern Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Norfolk Southern Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Norfolk Southern Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.