CSX Corporation
CSX Corporation Fundamental Analysis
CSX Corporation (CSX) shows moderate financial fundamentals with a PE ratio of 27.23, profit margin of 20.50%, and ROE of 22.90%. The company generates $14.1B in annual revenue with weak year-over-year growth of -0.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CSX's fundamental strength across five key dimensions:
Efficiency Score
WeakCSX struggles to generate sufficient returns from assets.
Valuation Score
ModerateCSX shows balanced valuation metrics.
Growth Score
WeakCSX faces weak or negative growth trends.
Financial Health Score
WeakCSX carries high financial risk with limited liquidity.
Profitability Score
ExcellentCSX achieves industry-leading margins.
Key Financial Metrics
Is CSX Expensive or Cheap?
P/E Ratio
CSX trades at 27.23 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CSX's PEG of 0.27 indicates potential undervaluation.
Price to Book
The market values CSX Corporation at 5.98 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.58 times EBITDA. This is generally considered low.
How Well Does CSX Make Money?
Net Profit Margin
For every $100 in sales, CSX Corporation keeps $20.50 as profit after all expenses.
Operating Margin
Core operations generate 32.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.90 in profit for every $100 of shareholder equity.
ROA
CSX Corporation generates $6.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CSX Corporation generates strong operating cash flow of $4.60B, reflecting robust business health.
Free Cash Flow
CSX Corporation generates strong free cash flow of $3.93B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.11 in free cash annually.
FCF Yield
CSX converts 5.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How CSX Stacks Against Its Sector Peers
| Metric | CSX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.23 | 26.76 | Neutral |
| ROE | 22.90% | 1300.00% | Weak |
| Net Margin | 20.50% | -29570.00% (disorted) | Strong |
| Debt/Equity | 1.43 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.22 | 10.68 | Weak Liquidity |
| ROA | 6.61% | -1545134.00% (disorted) | Weak |
CSX outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CSX Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.24%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
28.49%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
33.44%
Industry Style: Cyclical, Value, Infrastructure
High Growth