Norfolk SouthernMEX:NSC 84 Gross Margin % is 34.49% as of Mar. 2026, which is 8% below its 10-year median of 37.29. GuruFocus rates MEX:NSC with a GF Score™ of 84/100 and a GF Value™ of MXN4,459.10. The stock has 10 warning signs investors should review. Among 985 Transportation companies, Norfolk Southern ranks better than 77.26% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Norfolk Southern had a gross margin of 34.49% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Norfolk Southern Gross Margin % Related Terms
Norfolk Southern Gross Margin % Historical Data
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The historical data trend for Norfolk Southern's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:NSC vs CSX, WAB, TRN: Gross Margin % Comparison
For the Railroads subindustry, Norfolk Southern's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Norfolk Southern Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Norfolk Southern's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Norfolk Southern's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Norfolk Southern (MEX:NSC) has a Gross Margin % of 34.49% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Norfolk Southern and its competitors. This is near median its historical median of 37.29. Over the past decade, Norfolk Southern's Gross Margin % has ranged from 34.83 to 42.58. According to the industry distribution chart, Norfolk Southern ranks #224 out of 985 companies in the Transportation industry, placing it in the top 22.7%.
Is Norfolk Southern's Gross Margin % too high?
Norfolk Southern's current Gross Margin % of 34.49% is near median its 10-year median of 37.29. Over the past 10 years, this metric has ranged from a low of 34.83 to a high of 42.58. The Transportation industry median Gross Margin % is 20.42. Norfolk Southern's value of 34.49% is 68.9% above this industry median. Based on the distribution chart, Norfolk Southern ranks #224 out of 985 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Norfolk Southern has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Norfolk Southern's Gross Margin % compare to CSX and WAB?
According to the Transportation industry distribution chart, Norfolk Southern ranks #224 out of 985 companies for Gross Margin %. This places Norfolk Southern in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.42. Norfolk Southern's value of 34.49% is 68.9% above this benchmark. Historically, Norfolk Southern's own Gross Margin % has ranged from 34.83 to 42.58 over the past decade. While the company's 10-year median is 37.29 vs. the industry median of 20.42, Norfolk Southern has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Norfolk Southern's current Gross Margin % of 34.49% is 68.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Norfolk Southern and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Norfolk Southern's current Gross Margin % is 34.49%, which is near median its own 10-year median of 37.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Norfolk Southern stock overvalued right now?
Norfolk Southern (MEX:NSC) has a current Gross Margin % of 34.49%. The stock's GF Value™ is MXN4,459.10, compared to a current price of MXN5,332.88 — trading 19.6% above its estimated fair value. The current Gross Margin % is 34.49%, which is near median its 10-year median of 37.29 and 68.9% above the Transportation industry median of 20.42. Norfolk Southern's overall GF Score™ is 84/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Norfolk Southern (MEX:NSC), the current Gross Margin % is 34.49% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Norfolk Southern (MEX:NSC) Overvalued in 2026?
Based on GuruFocus' analysis, Norfolk Southern stock appears to be overvalued.
The current stock price of MXN5,332.88 is trading 19.6% above its estimated GF Value™ of MXN4,459.10.
Key valuation signals for MEX:NSC:
Gross Margin %: 34.49% (near median its 10-year median of 37.29)
GF Value™: MXN4,459.10 vs. price of MXN5,332.88 (19.6% above fair value)
Industry Position: 68.9% above the Transportation median (#224 of 985)
No single metric tells the full story. See the MEX:NSC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Class I railroad Norfolk Southern operates in the Eastern United States. On more than 20,000 miles of track, the rail hauls shipments of coal, intermodal traffic, and a diverse mix of automotive, agricultural, metal, chemical, and forest products.
84GF Score
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