CSX CORP (CSX) Stock Fundamental Analysis
NASDAQ:CSX - Nasdaq - US1264081035 - Common Stock - Currency: USD
CSX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Ground Transportation industry. CSX scores excellent on profitability, but there are concerns on its financial health. CSX is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years CSX has been profitable.
Each year in the past 5 years CSX had a positive operating cash flow.
1.2 Ratios
CSX's Return On Assets of 7.49% is fine compared to the rest of the industry. CSX outperforms 78.05% of its industry peers.
With an excellent Return On Equity value of 26.59%, CSX belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
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 8.11%.
| 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
CSX's Profit Margin of 22.66% is amongst the best of the industry. CSX outperforms 87.80% of its industry peers.
CSX's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 35.34%, CSX belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
In the last couple of years the Operating Margin of CSX has declined.
CSX has a better Gross Margin (71.83%) than 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.
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.
CSX has a better debt/assets ratio than last year.
2.2 Solvency
CSX has an Altman-Z score of 2.04. 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.
The Altman-Z score of CSX (2.04) is comparable to the rest of the industry.
The Debt to FCF ratio of CSX is 7.10, which is on the high side as it means it would take CSX, 7.10 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.10, CSX is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
CSX has a Debt/Equity ratio of 1.52. This is a high value indicating a heavy dependency on external financing.
CSX has a worse Debt to Equity ratio (1.52) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 7.1 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.13
WACC8.51%
2.3 Liquidity
CSX has a Current 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's Current ratio of 0.88 is on the low side compared to the rest of the industry. CSX is outperformed by 60.98% of its industry peers.
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'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%.
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 -2.39% in the last year.
Measured over the past years, CSX shows a small growth in Revenue. The Revenue has been growing by 4.02% on average per year.
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 8.18% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 16.78, which indicates a correct valuation of CSX.
Compared to the rest of the industry, the Price/Earnings ratio of CSX indicates a rather cheap valuation: CSX is cheaper than 80.49% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CSX to the average of the S&P500 Index (28.22), we can say CSX is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.56, the valuation of CSX can be described as correct.
Based on the Price/Forward Earnings ratio, CSX is valued a bit cheaper than 68.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. CSX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.78 | ||
| Fwd PE | 14.56 |
4.2 Price Multiples
60.98% of the companies in the same industry are more expensive than CSX, based on the Enterprise Value to EBITDA ratio.
82.93% 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 | 20.01 | ||
| EV/EBITDA | 10.53 |
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)2.97
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 1.71, CSX pays a better dividend. On top of this CSX pays more dividend than 80.49% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, CSX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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.
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%
28.7
+0.59 (+2.1%)
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 Cap53.91B
Analysts77.5
Price Target33.46 (16.59%)
Short Float %1.64%
Short Ratio1.83
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 | 16.78 | ||
| Fwd PE | 14.56 | ||
| P/S | 3.77 | ||
| P/FCF | 20.01 | ||
| P/OCF | 9.95 | ||
| P/B | 4.43 | ||
| P/tB | 4.59 | ||
| EV/EBITDA | 10.53 |
EPS(TTM)1.71
EY5.96%
EPS(NY)1.97
Fwd EY6.87%
FCF(TTM)1.43
FCFY5%
OCF(TTM)2.88
OCFY10.05%
SpS7.6
BVpS6.48
TBVpS6.25
PEG (NY)N/A
PEG (5Y)2.97
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 | 2.04 |
F-Score5
WACC8.51%
ROIC/WACC1.13
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%