CSX CORP (CSX) Stock Fundamental Analysis
NASDAQ:CSX - Nasdaq - US1264081035 - Common Stock
We assign a fundamental rating of 5 out of 10 to CSX. CSX was compared to 38 industry peers in the Ground Transportation industry. While CSX has a great profitability rating, there are some minor concerns on its financial health. CSX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CSX had positive earnings in the past year.
CSX had a positive operating cash flow in the past year.
CSX had positive earnings in each of the past 5 years.
In the past 5 years CSX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.41%, CSX is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
CSX has a better Return On Equity (28.02%) than 89.47% of its industry peers.
CSX has a Return On Invested Capital of 10.27%. This is in the better half of the industry: CSX outperforms 78.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CSX is above the industry average of 7.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 28.02% | ||
| ROIC | 10.27% |
ROA(3y)9.36%
ROA(5y)8.74%
ROE(3y)30.69%
ROE(5y)28.26%
ROIC(3y)10.77%
ROIC(5y)10.29%
1.3 Margins
CSX's Profit Margin of 24.68% is amongst the best of the industry. CSX outperforms 89.47% of its industry peers.
In the last couple of years the Profit Margin of CSX has remained more or less at the same level.
CSX's Operating Margin of 37.08% is amongst the best of the industry. CSX outperforms 92.11% of its industry peers.
CSX's Operating Margin has been stable in the last couple of years.
The Gross Margin of CSX (72.40%) is better than 78.95% of its industry peers.
In the last couple of years the Gross Margin of CSX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.08% | ||
| PM (TTM) | 24.68% | ||
| GM | 72.4% |
OM growth 3Y-2.92%
OM growth 5Y-0.65%
PM growth 3Y-1.01%
PM growth 5Y-1.26%
GM growth 3Y-3.15%
GM growth 5Y-0.99%
2. Health
2.1 Basic Checks
CSX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CSX has less shares outstanding
The number of shares outstanding for CSX has been reduced compared to 5 years ago.
CSX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.40 indicates that CSX is not a great score, but indicates only limited risk for bankruptcy at the moment.
CSX's Altman-Z score of 2.40 is in line compared to the rest of the industry. CSX outperforms 52.63% of its industry peers.
CSX has a debt to FCF ratio of 6.23. This is a slightly negative value and a sign of low solvency as CSX would need 6.23 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.23, CSX is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
CSX has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CSX (1.43) is worse than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 6.23 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.28
WACC8%
2.3 Liquidity
CSX has a Current Ratio of 1.39. This is a normal value and indicates that CSX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CSX (1.39) is better than 68.42% of its industry peers.
CSX has a Quick Ratio of 1.23. This is a normal value and indicates that CSX is financially healthy and should not expect problems in meeting its short term obligations.
CSX's Quick ratio of 1.23 is in line compared to the rest of the industry. CSX outperforms 55.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
CSX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
CSX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.47% yearly.
The Revenue has decreased by -0.18% in the past year.
Measured over the past years, CSX shows a small growth in Revenue. The Revenue has been growing by 3.65% on average per year.
EPS 1Y (TTM)0%
EPS 3Y14.78%
EPS 5Y7.47%
EPS Q2Q%9.52%
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y11.47%
Revenue growth 5Y3.65%
Sales Q2Q%1.32%
3.2 Future
CSX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.78% yearly.
Based on estimates for the next years, CSX will show a small growth in Revenue. The Revenue will grow by 2.91% on average per year.
EPS Next Y1.22%
EPS Next 2Y5.33%
EPS Next 3Y7.42%
EPS Next 5Y7.78%
Revenue Next Year-0.07%
Revenue Next 2Y1.52%
Revenue Next 3Y2.45%
Revenue Next 5Y2.91%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.88 indicates a rather expensive valuation of CSX.
Based on the Price/Earnings ratio, CSX is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
CSX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.29 indicates a correct valuation of CSX.
CSX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CSX is cheaper than 76.32% of the companies in the same industry.
CSX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 16.29 |
4.2 Price Multiples
CSX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CSX is cheaper than 63.16% of the companies in the same industry.
CSX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CSX is cheaper than 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.54 | ||
| EV/EBITDA | 11.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CSX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CSX may justify a higher PE ratio.
PEG (NY)14.64
PEG (5Y)2.39
EPS Next 2Y5.33%
EPS Next 3Y7.42%
5. Dividend
5.1 Amount
CSX has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.27, CSX pays a better dividend. On top of this CSX pays more dividend than 84.21% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.28, CSX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
On average, the dividend of CSX grows each year by 8.38%, which is quite nice.
CSX has paid a dividend for at least 10 years, which is a reliable track record.
CSX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.38%
Div Incr Years20
Div Non Decr Years22
5.3 Sustainability
25.28% of the earnings are spent on dividend by CSX. This is a low number and sustainable payout ratio.
The dividend of CSX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.28%
EPS Next 2Y5.33%
EPS Next 3Y7.42%
CSX CORP
NASDAQ:CSX (1/22/2025, 2:04:57 PM)
33.26
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners77.87%
Inst Owner Change0.15%
Ins Owners0.1%
Ins Owner Change-0.96%
Market Cap64.14B
Analysts77.5
Price Target39.58 (19%)
Short Float %1.74%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend0.44
Dividend Growth(5Y)8.38%
DP25.28%
Div Incr Years20
Div Non Decr Years22
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.42%
Min EPS beat(2)-4.49%
Max EPS beat(2)1.65%
EPS beat(4)3
Avg EPS beat(4)-0.33%
Min EPS beat(4)-4.49%
Max EPS beat(4)1.65%
EPS beat(8)5
Avg EPS beat(8)0.76%
EPS beat(12)9
Avg EPS beat(12)2.18%
EPS beat(16)12
Avg EPS beat(16)2.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-2.45%
Max Revenue beat(2)-1.02%
Revenue beat(4)1
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)0.41%
Revenue beat(8)2
Avg Revenue beat(8)-0.54%
Revenue beat(12)6
Avg Revenue beat(12)0.54%
Revenue beat(16)10
Avg Revenue beat(16)0.94%
PT rev (1m)-0.21%
PT rev (3m)-0.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.91%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 16.29 | ||
| P/S | 4.37 | ||
| P/FCF | 21.54 | ||
| P/OCF | 11.97 | ||
| P/B | 4.96 | ||
| P/tB | 5.18 | ||
| EV/EBITDA | 11.42 |
EPS(TTM)1.86
EY5.59%
EPS(NY)2.04
Fwd EY6.14%
FCF(TTM)1.54
FCFY4.64%
OCF(TTM)2.78
OCFY8.36%
SpS7.61
BVpS6.71
TBVpS6.42
PEG (NY)14.64
PEG (5Y)2.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 28.02% | ||
| ROCE | 13.44% | ||
| ROIC | 10.27% | ||
| ROICexc | 10.71% | ||
| ROICexgc | 10.87% | ||
| OM | 37.08% | ||
| PM (TTM) | 24.68% | ||
| GM | 72.4% | ||
| FCFM | 20.28% |
ROA(3y)9.36%
ROA(5y)8.74%
ROE(3y)30.69%
ROE(5y)28.26%
ROIC(3y)10.77%
ROIC(5y)10.29%
ROICexc(3y)11.34%
ROICexc(5y)10.91%
ROICexgc(3y)11.52%
ROICexgc(5y)11.02%
ROCE(3y)14.09%
ROCE(5y)13.46%
ROICexcg growth 3Y6.13%
ROICexcg growth 5Y1.23%
ROICexc growth 3Y5.34%
ROICexc growth 5Y0.77%
OM growth 3Y-2.92%
OM growth 5Y-0.65%
PM growth 3Y-1.01%
PM growth 5Y-1.26%
GM growth 3Y-3.15%
GM growth 5Y-0.99%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 6.23 | ||
| Debt/EBITDA | 2.61 | ||
| Cap/Depr | 144.1% | ||
| Cap/Sales | 16.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.52% | ||
| Profit Quality | 82.17% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 2.4 |
F-Score6
WACC8%
ROIC/WACC1.28
Cap/Depr(3y)136.64%
Cap/Depr(5y)130.06%
Cap/Sales(3y)14.74%
Cap/Sales(5y)14.69%
Profit Quality(3y)86.38%
Profit Quality(5y)90.07%
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y14.78%
EPS 5Y7.47%
EPS Q2Q%9.52%
EPS Next Y1.22%
EPS Next 2Y5.33%
EPS Next 3Y7.42%
EPS Next 5Y7.78%
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y11.47%
Revenue growth 5Y3.65%
Sales Q2Q%1.32%
Revenue Next Year-0.07%
Revenue Next 2Y1.52%
Revenue Next 3Y2.45%
Revenue Next 5Y2.91%
EBIT growth 1Y-3.13%
EBIT growth 3Y8.21%
EBIT growth 5Y2.98%
EBIT Next Year27.26%
EBIT Next 3Y12.19%
EBIT Next 5Y9.11%
FCF growth 1Y-15.59%
FCF growth 3Y7.41%
FCF growth 5Y2.45%
OCF growth 1Y-3.18%
OCF growth 3Y9.19%
OCF growth 5Y3.64%