CSX CORP (CSX) Stock Fundamental Analysis
USA - NASDAQ:CSX - US1264081035 - Common Stock
36.13 USD
+0.56 (+1.57%)
36.05 USD
-0.08 (-0.22%)
Taking everything into account, CSX scores 5 out of 10 in our fundamental rating. CSX was compared to 42 industry peers in the Ground Transportation industry. CSX scores excellent on profitability, 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
CSX had positive earnings in the past year.
In the past year CSX had a positive cash flow from operations.
Each year in the past 5 years CSX has been profitable.
CSX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CSX has a Return On Assets of 7.23%. This is in the better half of the industry: CSX outperforms 78.57% of its industry peers.
The Return On Equity of CSX (25.07%) is better than 92.86% of its industry peers.
CSX's Return On Invested Capital of 9.31% is fine compared to the rest of the industry. CSX outperforms 78.57% 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 7.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.23% | ||
| ROE | 25.07% | ||
| ROIC | 9.31% |
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
CSX's Profit Margin of 21.91% is amongst the best of the industry. CSX outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of CSX has declined.
The Operating Margin of CSX (34.55%) is better than 90.48% of its industry peers.
In the last couple of years the Operating Margin of CSX has declined.
CSX has a better Gross Margin (71.73%) than 83.33% 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 | 34.55% | ||
| PM (TTM) | 21.91% | ||
| GM | 71.73% |
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
Compared to 5 years ago, CSX has less shares outstanding
The debt/assets ratio for CSX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.33 indicates that CSX is not a great score, but indicates only limited risk for bankruptcy at the moment.
CSX has a Altman-Z score (2.33) which is comparable to the rest of the industry.
CSX has a debt to FCF ratio of 9.55. This is a negative value and a sign of low solvency as CSX would need 9.55 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.55, CSX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.50 is on the high side and indicates that CSX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.50, CSX is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 9.55 | ||
| Altman-Z | 2.33 |
ROIC/WACC1.06
WACC8.81%
2.3 Liquidity
A Current Ratio of 0.77 indicates that CSX may have some problems paying its short term obligations.
CSX has a worse Current ratio (0.77) than 80.95% of its industry peers.
CSX has a Quick Ratio of 0.77. This is a bad value and indicates that CSX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.63, CSX is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
CSX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.79%.
Measured over the past 5 years, CSX shows a small growth in Earnings Per Share. The EPS has been growing by 5.65% on average per year.
The Revenue has decreased by -3.27% 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)-8.79%
EPS 3Y5.69%
EPS 5Y5.65%
EPS Q2Q%-10.2%
Revenue 1Y (TTM)-3.27%
Revenue growth 3Y5.11%
Revenue growth 5Y4.02%
Sales Q2Q%-3.43%
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 7.63% on average per year.
Based on estimates for the next years, CSX will show a small growth in Revenue. The Revenue will grow by 2.95% on average per year.
EPS Next Y-7.85%
EPS Next 2Y3.27%
EPS Next 3Y5.61%
EPS Next 5Y7.63%
Revenue Next Year-2.48%
Revenue Next 2Y0.92%
Revenue Next 3Y1.89%
Revenue Next 5Y2.95%
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 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 21.77 indicates a rather expensive valuation of CSX.
Based on the Price/Earnings ratio, CSX is valued a bit cheaper than 76.19% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. CSX is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.51 indicates a rather expensive valuation of CSX.
69.05% of the companies in the same industry are more expensive than CSX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.99. CSX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 18.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CSX is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, CSX is valued a bit cheaper than 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.58 | ||
| EV/EBITDA | 13.09 |
4.3 Compensation for Growth
The decent profitability rating of CSX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.85
EPS Next 2Y3.27%
EPS Next 3Y5.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.44%, CSX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.61, CSX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, CSX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
On average, the dividend of CSX grows each year by 8.56%, 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)8.56%
Div Incr Years20
Div Non Decr Years22
5.3 Sustainability
30.63% 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.
DP30.63%
EPS Next 2Y3.27%
EPS Next 3Y5.61%
36.13
+0.56 (+1.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners80.87%
Inst Owner Change-0.05%
Ins Owners0.11%
Ins Owner Change-0.94%
Market Cap67.36B
Analysts79.38
Price Target38.81 (7.42%)
Short Float %1.84%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend0.48
Dividend Growth(5Y)8.56%
DP30.63%
Div Incr Years20
Div Non Decr Years22
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.17%
Min EPS beat(2)-8.88%
Max EPS beat(2)4.53%
EPS beat(4)1
Avg EPS beat(4)-2.64%
Min EPS beat(4)-8.88%
Max EPS beat(4)4.53%
EPS beat(8)4
Avg EPS beat(8)-1.21%
EPS beat(12)7
Avg EPS beat(12)0.2%
EPS beat(16)11
Avg EPS beat(16)2.07%
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)-1.24%
Revenue beat(8)1
Avg Revenue beat(8)-1.2%
Revenue beat(12)3
Avg Revenue beat(12)-0.57%
Revenue beat(16)7
Avg Revenue beat(16)0.47%
PT rev (1m)-0.22%
PT rev (3m)15.46%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 18.51 | ||
| P/S | 4.76 | ||
| P/FCF | 33.58 | ||
| P/OCF | 13.57 | ||
| P/B | 5.44 | ||
| P/tB | 5.64 | ||
| EV/EBITDA | 13.09 |
EPS(TTM)1.66
EY4.59%
EPS(NY)1.95
Fwd EY5.4%
FCF(TTM)1.08
FCFY2.98%
OCF(TTM)2.66
OCFY7.37%
SpS7.59
BVpS6.64
TBVpS6.4
PEG (NY)N/A
PEG (5Y)3.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.23% | ||
| ROE | 25.07% | ||
| ROCE | 12.24% | ||
| ROIC | 9.31% | ||
| ROICexc | 9.4% | ||
| ROICexgc | 9.51% | ||
| OM | 34.55% | ||
| PM (TTM) | 21.91% | ||
| GM | 71.73% | ||
| FCFM | 14.17% |
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 | 1.5 | ||
| Debt/FCF | 9.55 | ||
| Debt/EBITDA | 2.82 | ||
| Cap/Depr | 175.03% | ||
| Cap/Sales | 20.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.44% | ||
| Profit Quality | 64.67% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 2.33 |
F-Score5
WACC8.81%
ROIC/WACC1.06
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)-8.79%
EPS 3Y5.69%
EPS 5Y5.65%
EPS Q2Q%-10.2%
EPS Next Y-7.85%
EPS Next 2Y3.27%
EPS Next 3Y5.61%
EPS Next 5Y7.63%
Revenue 1Y (TTM)-3.27%
Revenue growth 3Y5.11%
Revenue growth 5Y4.02%
Sales Q2Q%-3.43%
Revenue Next Year-2.48%
Revenue Next 2Y0.92%
Revenue Next 3Y1.89%
Revenue Next 5Y2.95%
EBIT growth 1Y-9.06%
EBIT growth 3Y1.29%
EBIT growth 5Y1.85%
EBIT Next Year21.82%
EBIT Next 3Y11.73%
EBIT Next 5Y9.19%
FCF growth 1Y-37.99%
FCF growth 3Y-6.34%
FCF growth 5Y-3.17%
OCF growth 1Y-10.91%
OCF growth 3Y0.96%
OCF growth 5Y1.59%