CSX CORP (CSX) Stock Fundamental Analysis
NASDAQ:CSX - Nasdaq - US1264081035 - Common Stock - Currency: USD
CSX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Ground Transportation industry. CSX has an excellent profitability rating, but there are concerns on its financial health. CSX has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CSX was profitable.
In the past year CSX had a positive cash flow from operations.
In the past 5 years CSX has always been profitable.
Each year in the past 5 years CSX had a positive operating cash flow.
1.2 Ratios
CSX has a better Return On Assets (7.49%) than 72.50% of its industry peers.
CSX's Return On Equity of 26.59% is amongst the best of the industry. CSX outperforms 90.00% of its industry peers.
CSX's Return On Invested Capital of 9.65% is fine compared to the rest of the industry. CSX outperforms 75.00% of its industry peers.
CSX had an Average Return On Invested Capital over the past 3 years of 10.70%. This is above the industry average of 8.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 26.59% | ||
| ROIC | 9.65% |
ROA(3y)8.91%
ROA(5y)8.6%
ROE(3y)30.47%
ROE(5y)28.11%
ROIC(3y)10.7%
ROIC(5y)10.22%
1.3 Margins
The Profit Margin of CSX (22.66%) is better than 85.00% of its industry peers.
In the last couple of years the Profit Margin of CSX has declined.
With an excellent Operating Margin value of 35.34%, CSX belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
CSX's Operating Margin has declined in the last couple of years.
CSX has a better Gross Margin (71.83%) than 82.50% of its industry peers.
CSX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.34% | ||
| PM (TTM) | 22.66% | ||
| GM | 71.83% |
OM growth 3Y-3.63%
OM growth 5Y-2.09%
PM growth 3Y-7.54%
PM growth 5Y-3.08%
GM growth 3Y-1.48%
GM growth 5Y-1.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CSX is still 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.
Compared to 1 year ago, CSX has an improved debt to assets ratio.
2.2 Solvency
CSX has an Altman-Z score of 2.20. This is not the best score and indicates that CSX is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.20, CSX is in line with its industry, outperforming 47.50% of the companies in the same industry.
CSX has a debt to FCF ratio of 7.10. This is a slightly negative value and a sign of low solvency as CSX would need 7.10 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.10, CSX is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
CSX has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
CSX has a Debt to Equity ratio of 1.52. This is amonst the worse of the industry: CSX underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 7.1 | ||
| Altman-Z | 2.2 |
ROIC/WACC1.08
WACC8.97%
2.3 Liquidity
CSX has a Current Ratio of 0.88. This is a bad value and indicates that CSX is not financially healthy enough and could expect problems in meeting its short term obligations.
CSX has a worse Current ratio (0.88) than 65.00% of its industry peers.
A Quick Ratio of 0.75 indicates that CSX may have some problems paying its short term obligations.
CSX has a Quick ratio of 0.75. This is in the lower half of the industry: CSX underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
CSX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.04%.
The Earnings Per Share has been growing slightly by 5.65% on average over the past years.
Looking at the last year, CSX shows a decrease in Revenue. The Revenue has decreased by -2.39% in the last year.
CSX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.02% yearly.
EPS 1Y (TTM)-6.04%
EPS 3Y5.69%
EPS 5Y5.65%
EPS Q2Q%-26.09%
Revenue 1Y (TTM)-2.39%
Revenue growth 3Y5.11%
Revenue growth 5Y4.02%
Sales Q2Q%-7.01%
3.2 Future
Based on estimates for the next years, CSX will show a small growth in Earnings Per Share. The EPS will grow by 7.68% on average per year.
The Revenue is expected to grow by 3.17% on average over the next years.
EPS Next Y-8.73%
EPS Next 2Y3.05%
EPS Next 3Y5.75%
EPS Next 5Y7.68%
Revenue Next Year-2.26%
Revenue Next 2Y1.13%
Revenue Next 3Y2.16%
Revenue Next 5Y3.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 19.57 indicates a rather expensive valuation of CSX.
Based on the Price/Earnings ratio, CSX is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
CSX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.22, which indicates a rather expensive current valuation of CSX.
Based on the Price/Forward Earnings ratio, CSX is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, CSX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.57 | ||
| Fwd PE | 17.22 |
4.2 Price Multiples
CSX's Enterprise Value to EBITDA ratio is in line with the industry average.
CSX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CSX is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.34 | ||
| EV/EBITDA | 11.8 |
4.3 Compensation for Growth
The decent profitability rating of CSX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.46
EPS Next 2Y3.05%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, CSX has a reasonable but not impressive dividend return.
CSX's Dividend Yield is a higher than the industry average which is at 1.55.
CSX's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
On average, the dividend of CSX grows each year by 8.56%, 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)8.56%
Div Incr Years20
Div Non Decr Years22
5.3 Sustainability
CSX pays out 29.05% of its income as dividend. This is a sustainable payout ratio.
The dividend of CSX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.05%
EPS Next 2Y3.05%
EPS Next 3Y5.75%
33.47
+0.84 (+2.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners80.04%
Inst Owner Change-3.59%
Ins Owners0.11%
Ins Owner Change3.5%
Market Cap62.88B
Analysts76.77
Price Target33.62 (0.45%)
Short Float %1.57%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend0.48
Dividend Growth(5Y)8.56%
DP29.05%
Div Incr Years20
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.3%
Min EPS beat(2)-8.88%
Max EPS beat(2)-1.72%
EPS beat(4)1
Avg EPS beat(4)-3.36%
Min EPS beat(4)-8.88%
Max EPS beat(4)1.65%
EPS beat(8)3
Avg EPS beat(8)-1.99%
EPS beat(12)7
Avg EPS beat(12)0.97%
EPS beat(16)11
Avg EPS beat(16)2.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)-2.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)-1.02%
Revenue beat(8)1
Avg Revenue beat(8)-1.28%
Revenue beat(12)4
Avg Revenue beat(12)-0.18%
Revenue beat(16)8
Avg Revenue beat(16)0.61%
PT rev (1m)0.63%
PT rev (3m)-9.39%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-10.12%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-9.41%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.57 | ||
| Fwd PE | 17.22 | ||
| P/S | 4.4 | ||
| P/FCF | 23.34 | ||
| P/OCF | 11.6 | ||
| P/B | 5.17 | ||
| P/tB | 5.36 | ||
| EV/EBITDA | 11.8 |
EPS(TTM)1.71
EY5.11%
EPS(NY)1.94
Fwd EY5.81%
FCF(TTM)1.43
FCFY4.28%
OCF(TTM)2.88
OCFY8.62%
SpS7.6
BVpS6.48
TBVpS6.25
PEG (NY)N/A
PEG (5Y)3.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 26.59% | ||
| ROCE | 12.69% | ||
| ROIC | 9.65% | ||
| ROICexc | 9.94% | ||
| ROICexgc | 10.05% | ||
| OM | 35.34% | ||
| PM (TTM) | 22.66% | ||
| GM | 71.83% | ||
| FCFM | 18.86% |
ROA(3y)8.91%
ROA(5y)8.6%
ROE(3y)30.47%
ROE(5y)28.11%
ROIC(3y)10.7%
ROIC(5y)10.22%
ROICexc(3y)11.14%
ROICexc(5y)10.77%
ROICexgc(3y)11.31%
ROICexgc(5y)10.9%
ROCE(3y)14.07%
ROCE(5y)13.44%
ROICexcg growth 3Y-0.99%
ROICexcg growth 5Y-0.33%
ROICexc growth 3Y-0.95%
ROICexc growth 5Y-0.55%
OM growth 3Y-3.63%
OM growth 5Y-2.09%
PM growth 3Y-7.54%
PM growth 5Y-3.08%
GM growth 3Y-1.48%
GM growth 5Y-1.36%
F-Score5
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 7.1 | ||
| Debt/EBITDA | 2.76 | ||
| Cap/Depr | 162.82% | ||
| Cap/Sales | 19.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.63% | ||
| Profit Quality | 83.25% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.2 |
F-Score5
WACC8.97%
ROIC/WACC1.08
Cap/Depr(3y)145.06%
Cap/Depr(5y)135.78%
Cap/Sales(3y)15.72%
Cap/Sales(5y)15.36%
Profit Quality(3y)83.6%
Profit Quality(5y)86.73%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.04%
EPS 3Y5.69%
EPS 5Y5.65%
EPS Q2Q%-26.09%
EPS Next Y-8.73%
EPS Next 2Y3.05%
EPS Next 3Y5.75%
EPS Next 5Y7.68%
Revenue 1Y (TTM)-2.39%
Revenue growth 3Y5.11%
Revenue growth 5Y4.02%
Sales Q2Q%-7.01%
Revenue Next Year-2.26%
Revenue Next 2Y1.13%
Revenue Next 3Y2.16%
Revenue Next 5Y3.17%
EBIT growth 1Y-6.66%
EBIT growth 3Y1.29%
EBIT growth 5Y1.85%
EBIT Next Year21.4%
EBIT Next 3Y12.06%
EBIT Next 5Y9.56%
FCF growth 1Y-19%
FCF growth 3Y-6.34%
FCF growth 5Y-3.17%
OCF growth 1Y-2.75%
OCF growth 3Y0.96%
OCF growth 5Y1.59%