CSX CORP (CSX) Stock Fundamental Analysis
NASDAQ:CSX - Nasdaq - US1264081035 - Common Stock - Currency: USD
Overall CSX gets a fundamental rating of 5 out of 10. We evaluated CSX against 39 industry peers in the Ground Transportation industry. While CSX belongs to the best of the industry regarding profitability, there are concerns on its financial health. CSX is valued correctly, 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.
Each year in the past 5 years CSX had a positive operating cash flow.
1.2 Ratios
CSX has a Return On Assets of 7.49%. This is in the better half of the industry: CSX outperforms 74.36% of its industry peers.
CSX's Return On Equity of 26.59% is amongst the best of the industry. CSX outperforms 92.31% of its industry peers.
CSX's Return On Invested Capital of 9.65% is fine compared to the rest of the industry. CSX outperforms 76.92% 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 8.06%.
| 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 84.62% of its industry peers.
In the last couple of years the Profit Margin of CSX has declined.
With an excellent Operating Margin value of 35.34%, CSX belongs to the best of the industry, outperforming 89.74% of the companies in the same industry.
CSX's Operating Margin has declined in the last couple of years.
The Gross Margin of CSX (71.83%) is better than 82.05% of its industry peers.
CSX's Gross Margin has been stable in the last couple of years.
| 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.
CSX has less shares outstanding than it did 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 2.19. 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 (2.19) which 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.
The Debt to FCF ratio of CSX (7.10) is better than 71.79% 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.
With a Debt to Equity ratio value of 1.52, CSX is not doing good in the industry: 79.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | 7.1 | ||
| Altman-Z | 2.19 |
ROIC/WACC1.08
WACC8.92%
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.
With a Current ratio value of 0.88, CSX is not doing good in the industry: 64.10% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.75, CSX is not doing good in the industry: 74.36% of the companies in the same industry are doing better.
| 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.
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 -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
Based on estimates for the next years, CSX will show a small growth in Earnings Per Share. The EPS will grow by 7.68% on average per year.
The Revenue is expected to grow by 3.17% on average over the next years.
EPS Next Y-8.57%
EPS Next 2Y3.33%
EPS Next 3Y5.85%
EPS Next 5Y7.68%
Revenue Next Year-2.19%
Revenue Next 2Y1.17%
Revenue Next 3Y2.16%
Revenue Next 5Y3.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 18.85, which indicates a rather expensive current valuation of CSX.
CSX's Price/Earnings ratio is a bit cheaper when compared to the industry. CSX is cheaper than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, CSX is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.50, CSX is valued correctly.
Based on the Price/Forward Earnings ratio, CSX is valued a bit cheaper than the industry average as 74.36% of the companies are valued more expensively.
CSX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
CSX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CSX is valued cheaply inside the industry as 89.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.48 | ||
| EV/EBITDA | 11.69 |
4.3 Compensation for Growth
The decent profitability rating of CSX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.33
EPS Next 2Y3.33%
EPS Next 3Y5.85%
5. Dividend
5.1 Amount
CSX has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.55, CSX pays a bit more dividend than its industry peers.
CSX's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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
29.05% of the earnings are spent on dividend by CSX. This is a low number and sustainable payout ratio.
CSX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.05%
EPS Next 2Y3.33%
EPS Next 3Y5.85%
32.24
+0.12 (+0.37%)
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 Cap60.56B
Analysts76.77
Price Target33.44 (3.72%)
Short Float %1.39%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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)0.1%
PT rev (3m)-10.42%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)-10.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.22%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 16.5 | ||
| P/S | 4.24 | ||
| P/FCF | 22.48 | ||
| P/OCF | 11.18 | ||
| P/B | 4.98 | ||
| P/tB | 5.16 | ||
| EV/EBITDA | 11.69 |
EPS(TTM)1.71
EY5.3%
EPS(NY)1.95
Fwd EY6.06%
FCF(TTM)1.43
FCFY4.45%
OCF(TTM)2.88
OCFY8.95%
SpS7.6
BVpS6.48
TBVpS6.25
PEG (NY)N/A
PEG (5Y)3.33
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 | 2.19 |
F-Score5
WACC8.92%
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-8.57%
EPS Next 2Y3.33%
EPS Next 3Y5.85%
EPS Next 5Y7.68%
Revenue 1Y (TTM)-2.39%
Revenue growth 3Y5.11%
Revenue growth 5Y4.02%
Sales Q2Q%-7.01%
Revenue Next Year-2.19%
Revenue Next 2Y1.17%
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%