CSX CORP (CSX) Stock Fundamental Analysis
NASDAQ:CSX - Nasdaq - US1264081035 - Common Stock - Currency: USD
Taking everything into account, CSX scores 5 out of 10 in our fundamental rating. CSX was compared to 39 industry peers in the Ground Transportation industry. CSX has an excellent profitability rating, but there are concerns on its financial health. CSX has a decent growth rate and is not valued too expensively. CSX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CSX had positive earnings in the past year.
In the past year CSX had a positive cash flow from operations.
In the past 5 years CSX has always been profitable.
CSX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 8.11%, CSX is doing good in the industry, outperforming 76.32% of the companies in the same industry.
CSX has a better Return On Equity (27.74%) than 89.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.29%, CSX belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
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 | 8.11% | ||
| ROE | 27.74% | ||
| ROIC | 10.29% |
ROA(3y)8.91%
ROA(5y)8.6%
ROE(3y)30.46%
ROE(5y)28.1%
ROIC(3y)10.7%
ROIC(5y)10.22%
1.3 Margins
With an excellent Profit Margin value of 23.87%, CSX belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
CSX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 36.74%, CSX belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
In the last couple of years the Operating Margin of CSX has declined.
CSX has a Gross Margin of 72.35%. This is in the better half of the industry: CSX outperforms 78.95% of its industry peers.
CSX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.74% | ||
| PM (TTM) | 23.87% | ||
| GM | 72.35% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSX is creating some value.
CSX has less shares outstanding than it did 1 year ago.
CSX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CSX has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of CSX is 6.81, which is on the high side as it means it would take CSX, 6.81 years of fcf income to pay off all of its debts.
CSX has a Debt to FCF ratio of 6.81. This is in the better half of the industry: CSX outperforms 65.79% of its industry peers.
A Debt/Equity ratio of 1.43 is on the high side and indicates that CSX has dependencies on debt financing.
With a Debt to Equity ratio value of 1.43, CSX is not doing good in the industry: 76.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 6.81 | ||
| Altman-Z | N/A |
ROIC/WACC1.15
WACC8.98%
2.3 Liquidity
A Current Ratio of 0.86 indicates that CSX may have some problems paying its short term obligations.
CSX has a Current ratio of 0.86. This is in the lower half of the industry: CSX underperforms 71.05% of its industry peers.
CSX has a Quick Ratio of 0.86. 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's Quick ratio of 0.86 is on the low side compared to the rest of the industry. CSX is outperformed by 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for CSX have decreased by -0.54% in the last year.
CSX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.65% yearly.
The Revenue has decreased by -0.80% in the past 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)-0.54%
EPS 3Y5.69%
EPS 5Y5.65%
EPS Q2Q%-6.67%
Revenue 1Y (TTM)-0.8%
Revenue growth 3Y5.11%
Revenue growth 5Y4.02%
Sales Q2Q%-3.83%
3.2 Future
Based on estimates for the next years, CSX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.09% on average per year.
Based on estimates for the next years, CSX will show a small growth in Revenue. The Revenue will grow by 4.19% on average per year.
EPS Next Y1.64%
EPS Next 2Y7.79%
EPS Next 3Y8.72%
EPS Next 5Y10.09%
Revenue Next Year0.79%
Revenue Next 2Y2.87%
Revenue Next 3Y3.23%
Revenue Next 5Y4.19%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.65, CSX is valued on the expensive side.
Based on the Price/Earnings ratio, CSX is valued a bit cheaper than the industry average as 76.32% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CSX to the average of the S&P500 Index (29.63), we can say CSX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.36, CSX is valued on the expensive side.
76.32% of the companies in the same industry are more expensive than CSX, based on the Price/Forward Earnings ratio.
CSX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 17.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSX is valued a bit cheaper than the industry average as 60.53% of the companies are valued more expensively.
84.21% of the companies in the same industry are more expensive than CSX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.92 | ||
| EV/EBITDA | 11.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CSX may justify a higher PE ratio.
PEG (NY)10.74
PEG (5Y)3.12
EPS Next 2Y7.79%
EPS Next 3Y8.72%
5. Dividend
5.1 Amount
CSX has a Yearly Dividend Yield of 1.57%.
Compared to an average industry Dividend Yield of 1.35, CSX pays a better dividend. On top of this CSX pays more dividend than 81.58% of the companies listed in the same industry.
CSX's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
On average, the dividend of CSX grows each year by 8.40%, which is quite nice.
CSX has been paying a dividend for at least 10 years, so it has 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)8.4%
Div Incr Years20
Div Non Decr Years22
5.3 Sustainability
CSX pays out 26.80% of its income as dividend. This is a sustainable payout ratio.
CSX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP26.8%
EPS Next 2Y7.79%
EPS Next 3Y8.72%
32.3
-0.16 (-0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners77.87%
Inst Owner Change2.21%
Ins Owners0.1%
Ins Owner Change0.77%
Market Cap62.29B
Analysts79.38
Price Target38 (17.65%)
Short Float %1.53%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
Yearly Dividend0.48
Dividend Growth(5Y)8.4%
DP26.8%
Div Incr Years20
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.11%
Min EPS beat(2)-4.49%
Max EPS beat(2)-1.72%
EPS beat(4)2
Avg EPS beat(4)-0.95%
Min EPS beat(4)-4.49%
Max EPS beat(4)1.65%
EPS beat(8)4
Avg EPS beat(8)0.53%
EPS beat(12)8
Avg EPS beat(12)2%
EPS beat(16)11
Avg EPS beat(16)2.47%
Revenue beat(2)0
Avg Revenue beat(2)-2.24%
Min Revenue beat(2)-2.45%
Max Revenue beat(2)-2.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.51%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)-0.54%
Revenue beat(8)2
Avg Revenue beat(8)-0.69%
Revenue beat(12)5
Avg Revenue beat(12)0.2%
Revenue beat(16)9
Avg Revenue beat(16)0.76%
PT rev (1m)-3.99%
PT rev (3m)-3.23%
EPS NQ rev (1m)-14.3%
EPS NQ rev (3m)-22.32%
EPS NY rev (1m)-8.87%
EPS NY rev (3m)-9.33%
Revenue NQ rev (1m)-4.05%
Revenue NQ rev (3m)-7.79%
Revenue NY rev (1m)-2.43%
Revenue NY rev (3m)-2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 17.36 | ||
| P/S | 4.28 | ||
| P/FCF | 22.92 | ||
| P/OCF | 11.87 | ||
| P/B | 4.98 | ||
| P/tB | 4.98 | ||
| EV/EBITDA | 11.43 |
EPS(TTM)1.83
EY5.67%
EPS(NY)1.86
Fwd EY5.76%
FCF(TTM)1.41
FCFY4.36%
OCF(TTM)2.72
OCFY8.42%
SpS7.54
BVpS6.49
TBVpS6.49
PEG (NY)10.74
PEG (5Y)3.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.11% | ||
| ROE | 27.74% | ||
| ROCE | 13.53% | ||
| ROIC | 10.29% | ||
| ROICexc | 10.56% | ||
| ROICexgc | 10.56% | ||
| OM | 36.74% | ||
| PM (TTM) | 23.87% | ||
| GM | 72.35% | ||
| FCFM | 18.69% |
ROA(3y)8.91%
ROA(5y)8.6%
ROE(3y)30.46%
ROE(5y)28.1%
ROIC(3y)10.7%
ROIC(5y)10.22%
ROICexc(3y)11.14%
ROICexc(5y)10.77%
ROICexgc(3y)11.27%
ROICexgc(5y)10.88%
ROCE(3y)14.07%
ROCE(5y)13.44%
ROICexcg growth 3Y-1.37%
ROICexcg growth 5Y-0.55%
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-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 6.81 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 152.53% | ||
| Cap/Sales | 17.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.96% | ||
| Profit Quality | 78.33% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | N/A |
F-Score6
WACC8.98%
ROIC/WACC1.15
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)-0.54%
EPS 3Y5.69%
EPS 5Y5.65%
EPS Q2Q%-6.67%
EPS Next Y1.64%
EPS Next 2Y7.79%
EPS Next 3Y8.72%
EPS Next 5Y10.09%
Revenue 1Y (TTM)-0.8%
Revenue growth 3Y5.11%
Revenue growth 5Y4.02%
Sales Q2Q%-3.83%
Revenue Next Year0.79%
Revenue Next 2Y2.87%
Revenue Next 3Y3.23%
Revenue Next 5Y4.19%
EBIT growth 1Y-3.35%
EBIT growth 3Y1.29%
EBIT growth 5Y1.85%
EBIT Next Year29.86%
EBIT Next 3Y13.99%
EBIT Next 5Y10.93%
FCF growth 1Y-16.55%
FCF growth 3Y-6.34%
FCF growth 5Y-3.17%
OCF growth 1Y-4.84%
OCF growth 3Y0.96%
OCF growth 5Y1.59%