CSX CORP (CSX) Stock Fundamental Analysis
USA - NASDAQ:CSX - US1264081035 - Common Stock
32.47 USD
-0.38 (-1.16%)
32.3 USD
-0.17 (-0.52%)
CSX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Ground Transportation industry. While CSX has a great profitability rating, there are quite some 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.
In the past 5 years CSX always reported a positive cash flow from operatings.
1.2 Ratios
CSX has a Return On Assets of 7.23%. This is in the better half of the industry: CSX outperforms 75.61% of its industry peers.
Looking at the Return On Equity, with a value of 25.07%, CSX belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
CSX has a better Return On Invested Capital (9.31%) than 75.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CSX is above the industry average of 7.92%.
| 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 85.37% of its industry peers.
In the last couple of years the Profit Margin of CSX has declined.
Looking at the Operating Margin, with a value of 34.55%, CSX belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
CSX's Operating Margin has declined in the last couple of years.
CSX has a Gross Margin of 71.73%. This is amongst the best in the industry. CSX outperforms 82.93% of its industry peers.
CSX's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSX is creating some value.
Compared to 1 year ago, CSX has less shares outstanding
Compared to 5 years ago, CSX has less shares outstanding
Compared to 1 year ago, CSX has an improved debt to assets ratio.
2.2 Solvency
CSX has an Altman-Z score of 2.21. 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 of 2.21. This is comparable to the rest of the industry: CSX outperforms 51.22% of its industry peers.
The Debt to FCF ratio of CSX is 9.55, which is on the high side as it means it would take CSX, 9.55 years of fcf income to pay off all of its debts.
CSX's Debt to FCF ratio of 9.55 is fine compared to the rest of the industry. CSX outperforms 65.85% of its industry peers.
CSX has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CSX (1.50) is worse than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 9.55 | ||
| Altman-Z | 2.21 |
ROIC/WACC1.04
WACC8.94%
2.3 Liquidity
CSX has a Current 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.
With a Current ratio value of 0.77, CSX is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
A Quick Ratio of 0.63 indicates that CSX may have some problems paying its short term obligations.
CSX has a Quick ratio of 0.63. This is amonst the worse of the industry: CSX underperforms 85.37% of its industry peers.
| 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%.
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 -3.27% in the last year.
The Revenue has been growing slightly by 4.02% on average over the past years.
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 7.52% on average per year.
CSX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.94% yearly.
EPS Next Y-7.91%
EPS Next 2Y3.35%
EPS Next 3Y5.76%
EPS Next 5Y7.52%
Revenue Next Year-2.38%
Revenue Next 2Y1.03%
Revenue Next 3Y1.96%
Revenue Next 5Y2.94%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.56, which indicates a rather expensive current valuation of CSX.
Based on the Price/Earnings ratio, CSX is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CSX is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.61, the valuation of CSX can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CSX indicates a somewhat cheap valuation: CSX is cheaper than 73.17% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CSX to the average of the S&P500 Index (22.73), we can say CSX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 16.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSX is valued a bit cheaper than the industry average as 60.98% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CSX is valued a bit cheaper than the industry average as 73.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.18 | ||
| EV/EBITDA | 12.16 |
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 2Y3.35%
EPS Next 3Y5.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, CSX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.58, CSX pays a bit more dividend than its industry peers.
CSX's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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 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
CSX pays out 30.63% 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.
DP30.63%
EPS Next 2Y3.35%
EPS Next 3Y5.76%
32.47
-0.38 (-1.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners80.52%
Inst Owner Change-2.76%
Ins Owners0.11%
Ins Owner Change-0.03%
Market Cap60.53B
Analysts78.13
Price Target38.9 (19.8%)
Short Float %1.48%
Short Ratio1.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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)8.44%
PT rev (3m)16.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.68%
EPS NY rev (1m)0.97%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 16.61 | ||
| P/S | 4.28 | ||
| P/FCF | 30.18 | ||
| P/OCF | 12.19 | ||
| P/B | 4.89 | ||
| P/tB | 5.07 | ||
| EV/EBITDA | 12.16 |
EPS(TTM)1.66
EY5.11%
EPS(NY)1.95
Fwd EY6.02%
FCF(TTM)1.08
FCFY3.31%
OCF(TTM)2.66
OCFY8.2%
SpS7.59
BVpS6.64
TBVpS6.4
PEG (NY)N/A
PEG (5Y)3.46
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 | 2.21 |
F-Score5
WACC8.94%
ROIC/WACC1.04
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-7.91%
EPS Next 2Y3.35%
EPS Next 3Y5.76%
EPS Next 5Y7.52%
Revenue 1Y (TTM)-3.27%
Revenue growth 3Y5.11%
Revenue growth 5Y4.02%
Sales Q2Q%-3.43%
Revenue Next Year-2.38%
Revenue Next 2Y1.03%
Revenue Next 3Y1.96%
Revenue Next 5Y2.94%
EBIT growth 1Y-9.06%
EBIT growth 3Y1.29%
EBIT growth 5Y1.85%
EBIT Next Year21.69%
EBIT Next 3Y11.79%
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%