CSX CORP (CSX) Stock Fundamental Analysis
NASDAQ:CSX - Nasdaq - US1264081035 - Common Stock - Currency: USD
Taking everything into account, CSX scores 5 out of 10 in our fundamental rating. CSX was compared to 40 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
In the past year CSX was profitable.
CSX had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 7.49%, CSX is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
CSX's Return On Equity of 26.59% is amongst the best of the industry. CSX outperforms 90.00% of its industry peers.
The Return On Invested Capital of CSX (9.65%) is better than 75.00% 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 8.58%.
| 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
The Profit Margin of CSX (22.66%) is better than 85.00% of its industry peers.
CSX's Profit Margin has declined in the last couple of years.
CSX has a Operating Margin of 35.34%. This is amongst the best in the industry. CSX outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of CSX has declined.
CSX has a better Gross Margin (71.83%) than 82.50% 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.
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
An Altman-Z score of 2.20 indicates that CSX is not a great score, but indicates only limited risk for bankruptcy at the moment.
CSX has a Altman-Z score of 2.20. This is comparable to the rest of the industry: CSX outperforms 47.50% of its industry peers.
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 70.00% 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's Debt to Equity ratio of 1.52 is on the low side compared to the rest of the industry. CSX is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 7.1 | ||
| Altman-Z | 2.2 |
ROIC/WACC1.08
WACC8.97%
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 65.00% of the companies in the same industry.
CSX has a Quick Ratio of 0.88. 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 Quick ratio (0.75) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The earnings per share for CSX have decreased by -6.04% in the last year.
CSX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.65% yearly.
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
The Earnings Per Share is expected to grow by 7.68% on average over the next years.
The Revenue is expected to grow by 3.17% on average over the next years.
EPS Next Y-8.73%
EPS Next 2Y3.05%
EPS Next 3Y5.75%
EPS Next 5Y7.68%
Revenue Next Year-2.26%
Revenue Next 2Y1.13%
Revenue Next 3Y2.16%
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
A Price/Earnings ratio of 19.08 indicates a rather expensive valuation of CSX.
75.00% of the companies in the same industry are more expensive than CSX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.15, CSX is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.79, the valuation of CSX can be described as correct.
75.00% of the companies in the same industry are more expensive than CSX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, CSX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 16.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CSX.
Based on the Price/Free Cash Flow ratio, CSX is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.75 | ||
| EV/EBITDA | 11.8 |
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)3.37
EPS Next 2Y3.05%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
CSX has a Yearly Dividend Yield of 1.60%.
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 2.42, CSX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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
CSX pays out 29.05% of its income as dividend. This is a sustainable payout ratio.
CSX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.05%
EPS Next 2Y3.05%
EPS Next 3Y5.75%
32.63
-0.28 (-0.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners80.04%
Inst Owner Change-3.59%
Ins Owners0.11%
Ins Owner Change3.5%
Market Cap61.30B
Analysts76.77
Price Target33.62 (3.03%)
Short Float %1.39%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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)0.63%
PT rev (3m)-9.39%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-10.12%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-9.41%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 16.79 | ||
| P/S | 4.29 | ||
| P/FCF | 22.75 | ||
| P/OCF | 11.31 | ||
| P/B | 5.04 | ||
| P/tB | 5.22 | ||
| EV/EBITDA | 11.8 |
EPS(TTM)1.71
EY5.24%
EPS(NY)1.94
Fwd EY5.96%
FCF(TTM)1.43
FCFY4.39%
OCF(TTM)2.88
OCFY8.84%
SpS7.6
BVpS6.48
TBVpS6.25
PEG (NY)N/A
PEG (5Y)3.37
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 | 2.2 |
F-Score5
WACC8.97%
ROIC/WACC1.08
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-8.73%
EPS Next 2Y3.05%
EPS Next 3Y5.75%
EPS Next 5Y7.68%
Revenue 1Y (TTM)-2.39%
Revenue growth 3Y5.11%
Revenue growth 5Y4.02%
Sales Q2Q%-7.01%
Revenue Next Year-2.26%
Revenue Next 2Y1.13%
Revenue Next 3Y2.16%
Revenue Next 5Y3.17%
EBIT growth 1Y-6.66%
EBIT growth 3Y1.29%
EBIT growth 5Y1.85%
EBIT Next Year21.4%
EBIT Next 3Y12.06%
EBIT Next 5Y9.56%
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%