NSCNEUTRAL

Return on Equity (ROE)

17.6%

Updated 222h ago

Sector Performance

61th percentile

NSC

17.6%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity—17.6% means NSC earns $0.176 for every $1 of equity.

That figure sits above the sector median of 13.9% and places NSC in the 60th percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter trend shows a decline of 4.9% (from 18.5% to 17.6%). While the current ROE is high relative to the sector, the recent quarter's drop introduces a cautionary note, as it suggests a short-term deterioration in profitability efficiency. This combination of a strong level with a mild downward move points to a moderate risk that the company's competitive advantage may be wavering, though without a broader trend the impact is contained. The metric supports the overall NEUTRAL verdict: the ROE is above average but the negative quarterly change keeps the assessment balanced rather than bullish.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about NSC?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are NSC's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.