Norfolk Story

NSC -- USA Stock

USD 252.06 2.04 0.80%

Macroaxis Story

Norfolk Southern Calculated Tax Rate is projected to decrease significantly based on the last few years of reporting. The past year's Calculated Tax Rate was at 25.33. The current year PPandE Turnover is expected to grow to 0.45, whereas Net Income Per Employee is forecasted to decline to about 87.1 K. While many traders are getting carried away by overanalyzing industrials space, it is reasonable to go over Norfolk Southern. We will evaluate if Norfolk Southern shares are reasonably priced going into February. In this post, I will also go over a few different drivers affecting Norfolk Southern's products and services, and explain how it may impact Norfolk Southern investors.

Published over a month ago

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Here is why Norfolk Southern (NYSE:NSC) can still attract investors

The company's average rating is Buy from 20 analysts. Macroaxis provides trade recommendations on Norfolk Southern to complement and cross-verify current analyst consensus on Norfolk Southern. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.

And What about dividends?

A dividend is the distribution of a portion of Norfolk Southern earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Norfolk Southern dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Norfolk one year expected dividend income is about $2.17 per share.

The current year Dividend Yield is expected to grow to 0.0176, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (1 B).

	Last Reported	Projected for 2021
Payment of Dividends and Other Cash Distributions	-960 M	-1 B
Dividend Yield	0.016	0.0176
Dividends per Basic Common Share	3.76	3.39

Investing in dividend-paying stocks, such as Norfolk Southern Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Norfolk Southern must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Norfolk Southern. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Norfolk Southern's Liquidity

Norfolk Southern financial leverage refers to using borrowed capital as a funding source to finance Norfolk Southern Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Norfolk Southern financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Norfolk Southern's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Norfolk Southern, but it might be worth checking our own buy vs. sell analysis

What did Norfolk Southern file with SEC?

The SEC filings are financial statements or other formal documents of Norfolk Southern Corp that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database.

Please check here for more information.

Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Norfolk shareholders may or may not be submitted as SEC does not always require it.

	10th of February 2021 Unclassified Corporate Event	View
	27th of January 2021 Financial Statements and Exhibits. Regulation FD Disclosure. Unclassified Corporate Event. Results of Operations and Financial Condition	View

Norfolk Southern exotic insider transaction detected

Legal trades by Norfolk Southern insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Norfolk insider trading alert for general transaction of common stock by James Squires, Chairman President and CEO, on 26th of February 2021. This event was filed by Norfolk Southern Corp with SEC on 2021-02-26. Statement of changes in beneficial ownership - SEC Form 4. James Squires currently serves as chairman of the board, president, chief executive officer of Norfolk Southern Corp [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Norfolk

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Norfolk Southern has an asset utilization ratio of 49.66 percent. This suggests that the company is making $0.5 for each dollar of assets. An increasing asset utilization means that Norfolk Southern is more efficient with each dollar of assets it utilizes for everyday operations.

Will Norfolk pull back in February 2021?

The downside deviation is down to 1.59 as of today. As of the 26th of January, Norfolk Southern secures the Mean Deviation of 1.35, downside deviation of 1.59, and Risk Adjusted Performance of 0.1255. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Norfolk Southern, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for Norfolk Southern, which can be compared to its peers in the industry. Please verify Norfolk Southern information ratio, value at risk, as well as the relationship between the Value At Risk and expected short fall to decide if Norfolk Southern is priced some-what accurately, providing market reflects its recent price of 245.96 per share. Given that Norfolk Southern has jensen alpha of 0.139, we recommend you to check Norfolk Southern's last-minute market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Whereas few other entities within the railroads industry are still a little expensive, even after the recent corrections, Norfolk Southern may offer a potential longer-term growth to investors. Taking everything into account, as of the 26th of January 2021, our present 30 days 'Buy-vs-Sell' recommendation on the company is Buy. However, we believe Norfolk Southern is currently overvalued with below average chance of distress for the next two years.

About Contributor

Gabriel Shpitalnik is a Member of Macroaxs Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Norfolk Southern Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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