Norfolk SouthernMEX:NSC 84 Interest Coverage is 5.04 as of Mar. 2026, which is 21% below its 10-year median of 6.41. GuruFocus rates MEX:NSC with a GF Score™ of 84/100 and a GF Value™ of MXN4,464.90. The stock has 10 warning signs investors should review. Among 846 Transportation companies, Norfolk Southern ranks better than 50.47% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Norfolk Southern's
Operating Income
for the
three
months ended in Mar. 2026 was MXN17,888 Mil. Norfolk Southern's Interest Expense for the
three
months ended in Mar. 2026 was MXN-3,552 Mil.
Norfolk Southern's interest coverage for the quarter that ended in Mar. 2026 was 5.04.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Norfolk Southern's Interest Coverage or its related term are showing as below:
MEX:NSC'
s Interest Coverage Range Over the Past 10 Years
Min: 5.69 Med: 6.41 Max: 7.53
Current: 5.78
MEX:NSC's Interest Coverage is ranked better than 50.47% of 846
companies
in the Transportation industry
Industry Median: 5.67
vs MEX:NSC: 5.78
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Norfolk Southern Interest Coverage Related Terms
Norfolk Southern Interest Coverage Historical Data
* Premium members only.
The historical data trend for Norfolk Southern's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:NSC vs CSX, WAB, TRN: Interest Coverage Comparison
For the Railroads subindustry, Norfolk Southern's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Norfolk Southern's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Norfolk Southern's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Norfolk Southern (MEX:NSC) has a Interest Coverage of 5.04 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Norfolk Southern and its competitors. This is 21% below median its historical median of 6.41. Over the past decade, Norfolk Southern's Interest Coverage has ranged from 5.69 to 7.53. According to the industry distribution chart, Norfolk Southern ranks #419 out of 846 companies in the Transportation industry, placing it in the top 49.5%.
Is Norfolk Southern's Interest Coverage too high?
Norfolk Southern's current Interest Coverage of 5.04 is 21% below median its 10-year median of 6.41. Over the past 10 years, this metric has ranged from a low of 5.69 to a high of 7.53. The Transportation industry median Interest Coverage is 5.67. Norfolk Southern's value of 5.04 is 11.1% below this industry median. Based on the distribution chart, Norfolk Southern ranks #419 out of 846 companies in the Transportation industry, which is above the industry midpoint. 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 Interest Coverage compare to CSX and WAB?
According to the Transportation industry distribution chart, Norfolk Southern ranks #419 out of 846 companies for Interest Coverage. This puts Norfolk Southern in the upper half of its industry. The industry median Interest Coverage is 5.67. Norfolk Southern's value of 5.04 is 11.1% below this benchmark. Historically, Norfolk Southern's own Interest Coverage has ranged from 5.69 to 7.53 over the past decade. While the company's 10-year median is 6.41 vs. the industry median of 5.67, Norfolk Southern has consistently been below 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 Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.67, based on 846 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Norfolk Southern's current Interest Coverage of 5.04 is 11.1% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Norfolk Southern and its competitors. For the Transportation industry, the median Interest Coverage is 5.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Norfolk Southern's current Interest Coverage is 5.04, which is 21% below median its own 10-year median of 6.41. 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 Interest Coverage of 5.04. The stock's GF Value™ is MXN4,464.90, compared to a current price of MXN5,332.88 — trading 19.4% above its estimated fair value. The current Interest Coverage is 5.04, which is 21% below median its 10-year median of 6.41 and 11.1% below the Transportation industry median of 5.67. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Norfolk Southern (MEX:NSC), the current Interest Coverage is 5.04 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 19.4% above its estimated GF Value™ of MXN4,464.90.
Key valuation signals for MEX:NSC:
Interest Coverage: 5.04 (21% below median its 10-year median of 6.41)
GF Value™: MXN4,464.90 vs. price of MXN5,332.88 (19.4% above fair value)
Industry Position: 11.1% below the Transportation median (#419 of 846)
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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