CSX Corp
Exchange: NASDAQSector: IndustrialsIndustry: Railroads
CSX Corporation (CSX), together with its subsidiaries, is a transportation supplier. The Company provides rail-based transportation services, including traditional rail service and the transport of intermodal containers and trailers. CSX's operating subsidiary, CSX Transportation, Inc. (CSXT), provides link to the transportation supply chain through its approximately 21,000 route mile rail network, which serves centers in 23 states east of the Mississippi River, the District of Columbia and the Canadian provinces of Ontario and Quebec. It has access to over 70 ocean, river and lake port terminals along the Atlantic and Gulf Coasts, the Mississippi River, the Great Lakes and the St. Lawrence Seaway. The Company's intermodal business links customers to railroads through trucks and terminals. CSXT also serves production and distribution facilities through track connections to approximately 240 short-line and regional railroads.
Did you know?
A large-cap company with a $83.8B market cap.
Current Price
$45.09
-0.75%GoodMoat Value
$33.57
25.6% overvaluedProfile
Valuation (TTM)
Market Cap$83.85B
P/E27.49
EV$90.71B
P/B6.37
Shares Out1.86B
P/Sales5.93
Revenue$14.15B
EV/EBITDA15.72
CSX Corp (CSX) Stock Analysis
GoodMoat Analysis
CSX Corp is a major North American railroad operator with a durable moat based on scale and regulatory barriers, but its current valuation appears unfavourable relative to its intrinsic value and growth profile. The stock trades at a premium to the GoodMoat target price, suggesting a lack of margin of safety for a value investor.
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CSX Corp operates a critical freight railroad network in the eastern United States, providing an essential service for transporting industrial and consumer goods. Applying the GoodMoat framework, the business possesses a clear competitive moat, primarily through its scale privilege (owning vast, irreplicable physical infrastructure) and high regulatory barriers to entry, as building a new national railroad is practically impossible. This likely results in a Moat Score of 5 or higher, passing the initial gate for analysis. The company also demonstrates strong quality indicators, including a robust 32.1% operating margin and a high 22.0% return on equity.
However, the valuation assessment presents a significant hurdle. The current price of $39.57 is notably above the GoodMoat target of $33.57, indicating a negative margin of safety. With a P/E of 25.5x and flat revenue growth (-0.9% YoY), the stock appears priced for perfection. According to the Decision Framework, a stock with a strong moat but trading at an unfavourable valuation with minimal safety margin falls into the 'With Caution' or 'Unfavourable' category. For a value investor, this suggests the business is high-quality but the price does not currently offer an attractive entry point, warranting further investigation only if the price declines significantly to provide a sufficient margin of safety.
Analysis based on data as of 2024-05-15.
Market Cap$83.85B
Current Price$45.09
P/E Ratio27.49
Forward P/E—
PEG Ratio1.04
EPS$1.54
Book Value$7.08
P/B Ratio6.37
CSX Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -10.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 18.7B
Revenue
11.9B
FY19
10.6B
FY20
12.5B
FY21
14.9B
FY22
14.7B
FY23
14.5B
FY24
14.1B
FY25
Net Income
3.3B
FY19
2.8B
FY20
3.8B
FY21
4.1B
FY22
3.7B
FY23
3.5B
FY24
2.9B
FY25
CSX 52-Week Range
$27.67
$46.18
50-Day MA: $41.81200-Day MA: $37.08
Did you know?
Pays a 1.16% dividend yield.
CSX Corp (CSX) Financial Summary
CSX Corp (CSX) is a Industrials company in the Railroads industry, listed on NASDAQ. The stock currently trades at $45.09 with a market capitalization of $83.85B.
Key valuation metrics include a P/E ratio of 27.49, price-to-book ratio of 6.37, and EPS of $1.54. The company reports a profit margin of 21.6% and return on equity of 23.2%.
CSX Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $83.85B |
| P/E Ratio | 27.49 |
| EPS | $1.54 |
| P/B Ratio | 6.37 |
| P/S Ratio | 5.93 |
| EV/EBITDA | 15.72 |
| Dividend Yield | 1.16% |
| Profit Margin | 21.6% |
| Return on Equity | 23.2% |
| Debt/Equity | 1.47 |
CSX Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $11.94B | $3.33B |
| FY20 | $10.58B | $2.77B |
| FY21 | $12.52B | $3.78B |
| FY22 | $14.85B | $4.11B |
| FY23 | $14.66B | $3.67B |
| FY24 | $14.54B | $3.47B |
| FY25 | $14.09B | $2.89B |
CSX Corp (CSX) Valuation
Based on GoodMoat's DCF model, CSX Corp has a fair value estimate of $33.57. At the current price of $45.09, the stock appears 34.3% overvalued relative to our intrinsic value estimate.
CSX Quality Indicators
CSX Corp maintains a profit margin of 21.6% and an operating margin of 32.1%. Return on equity stands at 23.2%. The current ratio is 0.81. Debt-to-equity ratio is 1.47.
About CSX Corp
CSX Corporation (CSX), together with its subsidiaries, is a transportation supplier. The Company provides rail-based transportation services, including traditional rail service and the transport of intermodal containers and trailers. CSX's operating subsidiary, CSX Transportation, Inc. (CSXT), provides link to the transportation supply chain through its approximately 21,000 route mile rail network, which serves centers in 23 states east of the Mississippi River, the District of Columbia and the Canadian provinces of Ontario and Quebec. It has access to over 70 ocean, river and lake port terminals along the Atlantic and Gulf Coasts, the Mississippi River, the Great Lakes and the St. Lawrence Seaway. The Company's intermodal business links customers to railroads through trucks and terminals. CSXT also serves production and distribution facilities through track connections to approximately 240 short-line and regional railroads.
CSX Free Cash Flow
CSX Corp generated $1.79B in trailing twelve-month free cash flow, representing an FCF yield of 2.13%. This moderate FCF yield indicates reasonable cash generation.
CSX Shares Outstanding
CSX Corp has 1.86 billion shares outstanding at a share price of $45.09, giving it a market capitalization of $83.85B.
CSX Recent Insider Trades
Recent insider transactions at CSX Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| ANGEL STEPHEN F (President & CEO) | BUY | 25,000 | $1.01M |
| Sorfleet Diana B (EVP & CAO) | SELL | 90,000 | $3.74M |
| Fortune Stephen (EVP - CD & TO) | SELL | 31,456 | $1.22M |