NasdaqGS:CSX

Stock Analysis Report

Executive Summary

CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services.


Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has CSX's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CSX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.5%

CSX

6.2%

US Transportation

7.2%

US Market


1 Year Return

-23.8%

CSX

-18.4%

US Transportation

-10.4%

US Market

Return vs Industry: CSX underperformed the US Transportation industry which returned -21.2% over the past year.

Return vs Market: CSX underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

CSXIndustryMarket
7 Day4.5%6.2%7.2%
30 Day-17.6%-14.1%-12.6%
90 Day-19.8%-18.8%-19.4%
1 Year-22.8%-23.8%-16.9%-18.4%-8.5%-10.4%
3 Year28.0%22.7%28.5%22.3%15.8%8.3%
5 Year89.2%72.9%36.0%35.4%35.8%21.0%

Price Volatility Vs. Market

How volatile is CSX's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CSX undervalued compared to its fair value and its price relative to the market?

10.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSX ($56.29) is trading below our estimate of fair value ($64.48)

Significantly Below Fair Value: CSX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CSX is good value based on its PE Ratio (13.5x) compared to the Transportation industry average (17.7x).

PE vs Market: CSX is poor value based on its PE Ratio (13.5x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CSX is poor value based on its PEG Ratio (10x)


Price to Book Ratio

PB vs Industry: CSX is overvalued based on its PB Ratio (3.7x) compared to the US Transportation industry average (1.8x).


Next Steps

Future Growth

How is CSX forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSX's forecast earnings growth (1.3% per year) is below the savings rate (1.7%).

Earnings vs Market: CSX's earnings (1.3% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: CSX's earnings are forecast to grow, but not significantly.

Revenue vs Market: CSX's revenue (1.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CSX's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CSX's Return on Equity is forecast to be high in 3 years time (29.6%)


Next Steps

Past Performance

How has CSX performed over the past 5 years?

20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSX has high quality earnings.

Growing Profit Margin: CSX's current net profit margins (27.9%) are higher than last year (27%).


Past Earnings Growth Analysis

Earnings Trend: CSX's earnings have grown significantly by 20.3% per year over the past 5 years.

Accelerating Growth: CSX's earnings growth over the past year (0.7%) is below its 5-year average (20.3% per year).

Earnings vs Industry: CSX earnings growth over the past year (0.7%) exceeded the Transportation industry -12.4%.


Return on Equity

High ROE: Whilst CSX's Return on Equity (28.08%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is CSX's financial position?


Financial Position Analysis

Short Term Liabilities: CSX's short term assets ($3.3B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: CSX's short term assets ($3.3B) do not cover its long term liabilities ($24.2B).


Debt to Equity History and Analysis

Debt Level: CSX's debt to equity ratio (136.8%) is considered high.

Reducing Debt: CSX's debt to equity ratio has increased from 87.1% to 136.8% over the past 5 years.

Debt Coverage: CSX's debt is well covered by operating cash flow (29.9%).

Interest Coverage: CSX's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet

Inventory Level: CSX has a high level of physical assets or inventory.

Debt Coverage by Assets: CSX's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is CSX's current dividend yield, its reliability and sustainability?

1.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSX's dividend (1.85%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: CSX's dividend (1.85%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: CSX's dividends per share have been stable in the past 10 years.

Growing Dividend: CSX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.9%), CSX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CSX's dividends in 3 years are forecast to be well covered by earnings (22.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Jim Foote (65yo)

2.25s

Tenure

US$13,770,601

Compensation

Mr. James M. Foote, also known as Jim, has been President, CEO and Director of CSX Corporation since December 22, 2017. Mr. Foote served as Chief Operating Officer of CSX Corporation from October 2017 to D ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD13.77M) is about average for companies of similar size in the US market ($USD11.74M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Foote
President2.25yrsUS$13.77m0.00080% $357.7k
Nathan Goldman
Executive VP2.25yrsUS$3.58m0.0097% $4.4m
Mark Wallace
Executive VP and Chief Sales & Marketing Officer1.67yrsUS$5.95m0.0052% $2.3m
Edmond Harris
Executive Vice President0.42yrUS$6.51m0.0031% $1.4m
Kevin Boone
Executive VP & CFO0.83yrno data0.00084% $375.6k
Jamie Boychuk
Executive Vice President of Operations0.42yrno data0.0013% $599.2k
Angela Williams
VP & Chief Accounting Officer2yrsno data0.00099% $442.7k
Sarah Brandt
Senior VP & Chief Information Officer3.67yrsUS$3.17mno data
Diana Sorfleet
Executive VP & Chief Administrative Officer1.67yrsno data0.0030% $1.4m
Bill Slater
Head of Investor Relationno datano datano data

1.7yrs

Average Tenure

54yo

Average Age

Experienced Management: CSX's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Foote
President2.25yrsUS$13.77m0.00080% $357.7k
J. Whisler
Independent Director8.83yrsUS$301.58k0.0055% $2.4m
Pamela Carter
Independent Director9.67yrsUS$256.58k0.0063% $2.8m
John McPherson
Independent Director11.67yrsUS$246.58k0.0011% $474.0k
David Moffett
Independent Director4.83yrsUS$316.58k0.00076% $339.8k
John Zillmer
Independent Chairman1.17yrsUS$266.58k0.022% $10.0m
Donna Alvarado
Independent Director13.42yrsUS$251.58k0.0022% $983.8k
Steven Halverson
Independent Director13.42yrsUS$301.58kno data
Linda Riefler
Independent Director3yrsUS$251.58k0.00073% $326.4k
Paul Hilal
Vice Chairman3yrsUS$246.58kno data

6.8yrs

Average Tenure

65yo

Average Age

Experienced Board: CSX's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CSX insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CSX Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CSX Corporation
  • Ticker: CSX
  • Exchange: NasdaqGS
  • Founded: 1978
  • Industry: Railroads
  • Sector: Transportation
  • Market Cap: US$44.717b
  • Shares outstanding: 770.71m
  • Website: https://www.csx.com

Number of Employees


Location

  • CSX Corporation
  • 500 Water Street
  • 15th Floor
  • Jacksonville
  • Florida
  • 32202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1980
0HRJLSE (London Stock Exchange)YesCommon StockGBUSDNov 1980
CXRDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1980
CXRBST (Boerse-Stuttgart)YesCommon StockDEEURNov 1980
CSXWBAG (Wiener Boerse AG)YesCommon StockATEURNov 1980
CXRETLX (Eurotlx)YesCommon StockITEURNov 1980
CSX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 1980
CSXC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.5 COM USD1BRBRLMay 2019

Biography

CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services, as well as transports intermodal containers and trailers. It transports chemicals, automotive, agricultural and food products, minerals, fertilizers, forest products, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants. The company also exports coal to deep-water port facilities. In addition, it offers intermodal transportation services through a network of approximately 30 terminals transporting manufactured consumer goods in containers in the eastern United States; drayage services, including the pickup and delivery of intermodal shipments; and trucking dispatch services. Further, the company serves the automotive industry with distribution centers and storage locations, as well as connects non-rail served customers through transferring products from rail to trucks, which includes plastics and ethanol. Additionally, it acquires, develops, sells, leases, and manages real estate properties. The company operates approximately 20,500 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as owns and leases approximately 3,900 locomotives. It also serves production and distribution facilities through track connections. CSX Corporation was founded in 1978 and is based in Jacksonville, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:24
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.