CSX CORP (CSX) Stock Fundamental Analysis
USA - NASDAQ:CSX - US1264081035 - Common Stock
36.01 USD
+0.44 (+1.24%)
36.01 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CSX. CSX was compared to 42 industry peers in the Ground Transportation industry. While CSX has a great profitability rating, there are quite some concerns on its financial health. CSX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CSX had positive earnings in the past year.
CSX had a positive operating cash flow in the past year.
CSX had positive earnings in each of the past 5 years.
Each year in the past 5 years CSX had a positive operating cash flow.
1.2 Ratios
CSX's Return On Assets of 7.23% is fine compared to the rest of the industry. CSX outperforms 76.19% of its industry peers.
CSX's Return On Equity of 25.07% is amongst the best of the industry. CSX outperforms 92.86% of its industry peers.
CSX has a better Return On Invested Capital (9.31%) than 76.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 21.91%, CSX belongs to the top of the industry, outperforming 85.71% 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 34.55%, CSX belongs to the top of the industry, outperforming 90.48% 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 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
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
An Altman-Z score of 2.31 indicates that CSX is not a great score, but indicates only limited risk for bankruptcy at the moment.
CSX has a Altman-Z score (2.31) 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.
CSX has a Debt to FCF ratio of 9.55. This is in the better half of the industry: CSX outperforms 66.67% 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.
CSX's Debt to Equity ratio of 1.50 is on the low side compared to the rest of the industry. CSX is outperformed by 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 9.55 | ||
| Altman-Z | 2.31 |
ROIC/WACC1.04
WACC8.95%
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 78.57% 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.
CSX's Quick ratio of 0.63 is on the low side compared to the rest of the industry. CSX is outperformed by 83.33% 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.
CSX shows a decrease in Revenue. In the last year, the revenue decreased by -3.27%.
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
The Earnings Per Share is expected to grow by 7.52% on average over the next years.
Based on estimates for the next years, CSX will show a small growth in Revenue. The Revenue will grow by 2.94% on average per year.
EPS Next Y-7.85%
EPS Next 2Y3.27%
EPS Next 3Y5.61%
EPS Next 5Y7.52%
Revenue Next Year-2.38%
Revenue Next 2Y0.96%
Revenue Next 3Y1.86%
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
Based on the Price/Earnings ratio of 21.69, the valuation of CSX can be described as rather expensive.
CSX's Price/Earnings ratio is a bit cheaper when compared to the industry. CSX is cheaper than 76.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of CSX to the average of the S&P500 Index (27.86), we can say CSX is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.45, 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 69.05% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.29. CSX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.45 |
4.2 Price Multiples
CSX's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSX indicates a somewhat cheap valuation: CSX is cheaper than 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.47 | ||
| EV/EBITDA | 12.93 |
4.3 Compensation for Growth
The decent profitability rating of CSX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.84
EPS Next 2Y3.27%
EPS Next 3Y5.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, CSX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.63, CSX pays a bit more dividend than its industry peers.
CSX's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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 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
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%
36.01
+0.44 (+1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners80.87%
Inst Owner Change-2.77%
Ins Owners0.11%
Ins Owner Change-0.03%
Market Cap67.13B
Analysts78.13
Price Target38.94 (8.14%)
Short Float %1.84%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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)-0.65%
PT rev (3m)15.84%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.45 | ||
| P/S | 4.74 | ||
| P/FCF | 33.47 | ||
| P/OCF | 13.52 | ||
| P/B | 5.43 | ||
| P/tB | 5.62 | ||
| EV/EBITDA | 12.93 |
EPS(TTM)1.66
EY4.61%
EPS(NY)1.95
Fwd EY5.42%
FCF(TTM)1.08
FCFY2.99%
OCF(TTM)2.66
OCFY7.39%
SpS7.59
BVpS6.64
TBVpS6.4
PEG (NY)N/A
PEG (5Y)3.84
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 | 2.31 |
F-Score5
WACC8.95%
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-7.85%
EPS Next 2Y3.27%
EPS Next 3Y5.61%
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 2Y0.96%
Revenue Next 3Y1.86%
Revenue Next 5Y2.94%
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%