CSX CORP (CSX) Stock Fundamental Analysis
NASDAQ:CSX - Nasdaq - US1264081035 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CSX. CSX was compared to 41 industry peers in the Ground Transportation industry. CSX has an excellent profitability rating, but there are concerns on its financial health. CSX has a correct valuation and a medium growth rate.
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.
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
CSX has a Return On Assets of 7.49%. This is in the better half of the industry: CSX outperforms 78.05% of its industry peers.
CSX's Return On Equity of 26.59% is amongst the best of the industry. CSX outperforms 90.24% of its industry peers.
The Return On Invested Capital of CSX (9.65%) is better than 80.49% 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 8.12%.
| 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
Looking at the Profit Margin, with a value of 22.66%, CSX belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
In the last couple of years the Profit Margin of CSX has declined.
CSX has a better Operating Margin (35.34%) than 90.24% of its industry peers.
CSX's Operating Margin has declined in the last couple of years.
CSX has a Gross Margin of 71.83%. This is amongst the best in the industry. CSX outperforms 80.49% 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 | 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
CSX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CSX has been reduced compared to 1 year ago.
CSX has less shares outstanding than it did 5 years ago.
CSX has a better debt/assets ratio than last year.
2.2 Solvency
CSX has an Altman-Z score of 2.03. 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.
CSX has a Altman-Z score (2.03) which is comparable to the rest of the 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.
CSX has a Debt to FCF ratio of 7.10. This is in the better half of the industry: CSX outperforms 63.41% of its industry peers.
A Debt/Equity ratio of 1.52 is on the high side and indicates that CSX has dependencies on debt financing.
CSX has a Debt to Equity ratio of 1.52. This is in the lower half of the industry: CSX underperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 7.1 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.14
WACC8.5%
2.3 Liquidity
A Current Ratio of 0.88 indicates that CSX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.88, CSX is doing worse than 60.98% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that CSX may have some problems paying its short term obligations.
CSX's Quick ratio of 0.75 is on the low side compared to the rest of the industry. CSX is outperformed by 70.73% 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%.
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 -2.39% 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)-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
CSX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.18% yearly.
The Revenue is expected to grow by 3.29% on average over the next years.
EPS Next Y-7.26%
EPS Next 2Y3.79%
EPS Next 3Y5.97%
EPS Next 5Y8.18%
Revenue Next Year-2.15%
Revenue Next 2Y1.18%
Revenue Next 3Y2.18%
Revenue Next 5Y3.29%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
CSX is valuated correctly with a Price/Earnings ratio of 16.30.
CSX's Price/Earnings ratio is rather cheap when compared to the industry. CSX is cheaper than 80.49% of the companies in the same industry.
CSX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.14, CSX is valued correctly.
Based on the Price/Forward Earnings ratio, CSX is valued a bit cheaper than 75.61% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, CSX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 14.14 |
4.2 Price Multiples
CSX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CSX is cheaper than 60.98% of the companies in the same industry.
85.37% 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 | 19.43 | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
CSX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.88
EPS Next 2Y3.79%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
CSX has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.67, CSX pays a better dividend. On top of this CSX pays more dividend than 80.49% of the companies listed in the same industry.
CSX's Dividend Yield is slightly below the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
The dividend of CSX is nicely growing with an annual growth rate of 8.56%!
CSX has been paying a dividend for at least 10 years, so it has a reliable track record.
CSX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.56%
Div Incr Years20
Div Non Decr Years22
5.3 Sustainability
29.05% 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.
DP29.05%
EPS Next 2Y3.79%
EPS Next 3Y5.97%
27.87
+0.03 (+0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners80.14%
Inst Owner Change0.51%
Ins Owners0.1%
Ins Owner Change2.58%
Market Cap52.36B
Analysts78.18
Price Target33.46 (20.06%)
Short Float %1.48%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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)-10.36%
PT rev (3m)-15.46%
EPS NQ rev (1m)-9.66%
EPS NQ rev (3m)-20.07%
EPS NY rev (1m)-7.95%
EPS NY rev (3m)-16.85%
Revenue NQ rev (1m)-2.98%
Revenue NQ rev (3m)-5.88%
Revenue NY rev (1m)-2.92%
Revenue NY rev (3m)-4.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 14.14 | ||
| P/S | 3.67 | ||
| P/FCF | 19.43 | ||
| P/OCF | 9.66 | ||
| P/B | 4.3 | ||
| P/tB | 4.46 | ||
| EV/EBITDA | 10.46 |
EPS(TTM)1.71
EY6.14%
EPS(NY)1.97
Fwd EY7.07%
FCF(TTM)1.43
FCFY5.15%
OCF(TTM)2.88
OCFY10.35%
SpS7.6
BVpS6.48
TBVpS6.25
PEG (NY)N/A
PEG (5Y)2.88
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 | 2.03 |
F-Score5
WACC8.5%
ROIC/WACC1.14
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-7.26%
EPS Next 2Y3.79%
EPS Next 3Y5.97%
EPS Next 5Y8.18%
Revenue 1Y (TTM)-2.39%
Revenue growth 3Y5.11%
Revenue growth 5Y4.02%
Sales Q2Q%-7.01%
Revenue Next Year-2.15%
Revenue Next 2Y1.18%
Revenue Next 3Y2.18%
Revenue Next 5Y3.29%
EBIT growth 1Y-6.66%
EBIT growth 3Y1.29%
EBIT growth 5Y1.85%
EBIT Next Year28.45%
EBIT Next 3Y13.71%
EBIT Next 5Y9.8%
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%