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 40 industry peers in the Ground Transportation industry. CSX has an excellent profitability rating, but there are concerns on its financial health. CSX has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
CSX had positive earnings in each of the past 5 years.
CSX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CSX (7.23%) is better than 70.00% of its industry peers.
With an excellent Return On Equity value of 25.07%, CSX belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
CSX has a Return On Invested Capital of 9.31%. This is in the better half of the industry: CSX outperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CSX is above the industry average of 8.55%.
| 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 85.00% of its industry peers.
CSX's Profit Margin has declined in the last couple of years.
CSX's Operating Margin of 34.55% is amongst the best of the industry. CSX outperforms 90.00% of its industry peers.
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 82.50% 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
The number of shares outstanding for CSX has been reduced compared to 5 years ago.
The debt/assets ratio for CSX has been reduced compared to a year ago.
2.2 Solvency
CSX has an Altman-Z score of 2.31. 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 2.31. This is comparable to the rest of the industry: CSX outperforms 50.00% 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.
The Debt to FCF ratio of CSX (9.55) is better than 67.50% 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.
With a Debt to Equity ratio value of 1.50, CSX is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 9.55 | ||
| Altman-Z | 2.31 |
ROIC/WACC1.19
WACC7.8%
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.
CSX has a worse Current ratio (0.77) than 82.50% 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 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for CSX have decreased by -8.79% in the last year.
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.
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
CSX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.68% yearly.
CSX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.17% yearly.
EPS Next Y-8.79%
EPS Next 2Y3.16%
EPS Next 3Y5.47%
EPS Next 5Y7.68%
Revenue Next Year-2.37%
Revenue Next 2Y1.04%
Revenue Next 3Y1.98%
Revenue Next 5Y3.17%
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
Based on the Price/Earnings ratio of 21.09, the valuation of CSX can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CSX indicates a somewhat cheap valuation: CSX is cheaper than 70.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, CSX is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.98 indicates a rather expensive valuation of CSX.
Based on the Price/Forward Earnings ratio, CSX is valued a bit cheaper than the industry average as 67.50% of the companies are valued more expensively.
CSX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.09 | ||
| Fwd PE | 17.98 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CSX.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSX indicates a somewhat cheap valuation: CSX is cheaper than 67.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.54 | ||
| EV/EBITDA | 12.92 |
4.3 Compensation for Growth
The decent profitability rating of CSX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.73
EPS Next 2Y3.16%
EPS Next 3Y5.47%
5. Dividend
5.1 Amount
CSX has a Yearly Dividend Yield of 1.47%.
CSX's Dividend Yield is a higher than the industry average which is at 1.55.
Compared to the average S&P500 Dividend Yield of 2.35, CSX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
The dividend of CSX is nicely growing with an annual growth rate of 8.56%!
CSX has paid a dividend for at least 10 years, which is 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 2Y3.16%
EPS Next 3Y5.47%
35.01
-0.53 (-1.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners80.04%
Inst Owner Change0.22%
Ins Owners0.11%
Ins Owner Change1.89%
Market Cap65.27B
Analysts75.48
Price Target35.87 (2.46%)
Short Float %1.26%
Short Ratio1.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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)6.71%
PT rev (3m)7.2%
EPS NQ rev (1m)-1.38%
EPS NQ rev (3m)-10.38%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.09 | ||
| Fwd PE | 17.98 | ||
| P/S | 4.61 | ||
| P/FCF | 32.54 | ||
| P/OCF | 13.15 | ||
| P/B | 5.28 | ||
| P/tB | 5.47 | ||
| EV/EBITDA | 12.92 |
EPS(TTM)1.66
EY4.74%
EPS(NY)1.95
Fwd EY5.56%
FCF(TTM)1.08
FCFY3.07%
OCF(TTM)2.66
OCFY7.61%
SpS7.59
BVpS6.64
TBVpS6.4
PEG (NY)N/A
PEG (5Y)3.73
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
WACC7.8%
ROIC/WACC1.19
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-8.79%
EPS Next 2Y3.16%
EPS Next 3Y5.47%
EPS Next 5Y7.68%
Revenue 1Y (TTM)-3.27%
Revenue growth 3Y5.11%
Revenue growth 5Y4.02%
Sales Q2Q%-3.43%
Revenue Next Year-2.37%
Revenue Next 2Y1.04%
Revenue Next 3Y1.98%
Revenue Next 5Y3.17%
EBIT growth 1Y-9.06%
EBIT growth 3Y1.29%
EBIT growth 5Y1.85%
EBIT Next Year21.4%
EBIT Next 3Y12.06%
EBIT Next 5Y9.56%
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%