NasdaqGS:CSX

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


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


Market Performance


7 Day Return

3.2%

CSX

1.6%

US Transportation

0.5%

US Market


1 Year Return

3.6%

CSX

9.7%

US Transportation

6.8%

US Market

Return vs Industry: CSX underperformed the US Transportation industry which returned 9.7% over the past year.

Return vs Market: CSX underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

CSXIndustryMarket
7 Day3.2%1.6%0.5%
30 Day3.1%-0.6%-0.8%
90 Day1.2%-8.3%-0.9%
1 Year5.0%3.6%11.7%9.7%9.2%6.8%
3 Year143.2%132.7%82.1%73.5%45.6%36.2%
5 Year121.8%102.3%65.7%51.3%63.2%45.4%

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?

16.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CSX ($70.75) is trading above our estimate of fair value ($57.92)

Significantly Below Fair Value: CSX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CSX is good value based on its PE Ratio (16.8x) compared to the Transportation industry average (17.7x).

PE vs Market: CSX is good value based on its PE Ratio (16.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CSX is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: CSX is overvalued based on its PB Ratio (4.7x) compared to the US Transportation industry average (2.1x).


Next Steps

Future Growth

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

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSX's forecast earnings growth (3.1% per year) is above the savings rate (2.7%).

Earnings vs Market: CSX's earnings (3.1% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: CSX's revenue (2.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CSX's revenue (2.6% 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 (33%)


Next Steps

Past Performance

How has CSX performed over the past 5 years?

22.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CSX's earnings have grown significantly by 22.2% per year over the past 5 years.

Accelerating Growth: CSX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CSX had negative earnings growth (-48.5%) over the past year, making it difficult to compare to the Transportation industry average (-43.5%).


Return on Equity

High ROE: Whilst CSX's Return on Equity (28.65%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: CSX has a higher Return on Assets than the Transportation industry average last year.


Return on Capital Employed

ROCE Improving: CSX has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CSX's financial position?


Financial Position Analysis

Short Term Liabilities: CSX's short term assets ($4.0B) exceeds its short term liabilities ($2.8B)

Long Term Liabilities: CSX's short term assets (4.0B) do not cover its long term liabilities (24.1B)


Debt to Equity History and Analysis

Debt Level: CSX's debt to equity ratio (140.9%) is considered high

Reducing Debt: CSX's debt to equity ratio has increased from 86.4% to 140.9% over the past 5 years.

Debt Coverage: CSX's debt is well covered by operating cash flow (29.7%).

Interest Coverage: CSX's interest payments on its debt are well covered by EBIT (7.3x 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?

1.36%

Current Dividend Yield


Upcoming Dividend Payment

Purchase CSX before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CSX's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CSX's dividend (1.36%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (22.4%), 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% payout ratio).


Next Steps

Management

What is the CEO of CSX's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Jim Foote (65yo)

1.8yrs

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 November 2017 to ...


CEO Compensation Analysis

Compensation vs. Market: Jim has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.8yrs

Average Tenure

58yo

Average Age

Experienced Management: CSX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

6.4yrs

Average Tenure

65yo

Average Age

Experienced Board: CSX's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$179,087,60025 Jan 19
Mantle Ridge LP
EntityCompany
Shares2,780,000
Max PriceUS$64.42
SellUS$125,489,32425 Jan 19
Mantle Ridge LP
EntityCompany
Shares1,930,318
Max PriceUS$65.83

Ownership Breakdown


Management Team

  • Jim Foote (65yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$13.77m
  • Ed Harris (69yo)

    Executive Vice President

    • Tenure: 0yrs
    • Compensation: US$6.51m
  • Kevin Boone

    VP & Interim CFO

    • Tenure: 0.4yrs
  • Nathan Goldman (61yo)

    Executive VP

    • Tenure: 1.9yrs
    • Compensation: US$3.58m
  • Diana Sorfleet (54yo)

    Executive VP

    • Tenure: 1.3yrs
  • Mark Wallace (49yo)

    Executive Vice President of Sales & Marketing

    • Tenure: 1.3yrs
    • Compensation: US$5.95m
  • Sarah Brandt (55yo)

    Senior VP & Chief Information Officer

    • Tenure: 3.3yrs
    • Compensation: US$3.17m
  • Jermaine Swafford

    Senior VP of Operations - West

    • Tenure: 2.8yrs
  • Jamie Boychuk

    Executive Vice President of Operations

    • Tenure: 0yrs
  • Bill Slater

    Head of IR

    • Tenure: 0yrs

Board Members

  • Steve Whisler (64yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$301.58k
  • Pam Carter (69yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$256.58k
  • John McPherson (72yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$246.58k
  • David Moffett (67yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$316.58k
  • Jim Foote (65yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$13.77m
  • John Zillmer (64yo)

    Independent Chairman

    • Tenure: 0.8yrs
    • Compensation: US$266.58k
  • Donna Alvarado (70yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$251.58k
  • Steve Halverson (65yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$301.58k
  • Linda Riefler (58yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$251.58k
  • Paul Hilal (52yo)

    Vice Chairman

    • Tenure: 2.6yrs
    • Compensation: US$246.58k

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$55.350b
  • Shares outstanding: 782.34m
  • 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
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 transpor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:33
End of Day Share Price2019/10/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.