Education
About Us
Working with TipRanks
Follow Us
CSX Corporation (CSX)
:CSX
Top Page
CSX
(NASDAQ:CSX)70Outperform
Positive Factors
Growth Initiatives
Management is investing in growth despite short-term earnings pressure, which may lead to long-term dividends.
Valuation
Shares are trading at 15.2x 2026E EPS versus the peer average of 18.3x, indicating attractive relative valuation and supporting the Buy recommendation.
Negative Factors
Coal and Fuel Prices
The challenges presented by lower export coal and fuel prices will persist with a $300M net impact forecast.
Profit Headwinds
CSX Corporation faces $350 million of discrete profit headwinds, including commodity and network disruptions, which are expected to drive EBIT lower.
CSX (CSX) vs. S&P 500 (SPY)
Market Cap
$59.11B
Dividend Yield1.53%
Average Volume (3M)13.99M
Price to Earnings (P/E)17.5
Beta (1Y)0.77
Revenue Growth-0.80%
EPS GrowthN/A
CountryUS
Employees23,000
SectorIndustrials
Sector Strength66
IndustryTransportation
Share Statistics
EPS (TTM)1.79
Shares Outstanding1,894,616,600
10 Day Avg. Volume14,699,192
30 Day Avg. Volume13,985,745
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.16
Price to Cash Flow (P/CF)10.90
P/FCF Ratio10.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.24Price Target Upside16.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
CSX Business Overview & Revenue Model
Company DescriptionCSX Corporation provides rail-based freight transportation services, which includes traditional rail services and transportation of intermodal containers and trailers. The company operates approximately 1,848 trains per day and maintains a fleet of over 3,500 locomotives and approximately 51,000 freight cars.
How the Company Makes MoneyCSX makes money primarily through the transportation of freight via its extensive rail network. The company's revenue streams are diversified across various industries, with significant contributions from sectors such as coal, intermodal (the transportation of shipping containers and truck trailers), chemicals, automotive, and agricultural products. CSX charges customers for the transportation of goods, leveraging its rail infrastructure to offer cost-effective and efficient logistics solutions. Additionally, the company may generate revenue through partnerships with other transportation providers and logistics services, enhancing its service offerings and expanding its market reach. Key factors contributing to CSX's earnings include its operational efficiency, strategic pricing, and investments in technology and infrastructure to improve service reliability and network capacity.
CSX Financial Statement Overview
Summary
CSX exhibits solid financial health, characterized by stable profitability, a prudent balance sheet, and strong cash flow generation. Despite a slight revenue decline, the company maintains healthy margins and efficient cash management, providing a strong foundation for future growth and resilience.Income Statement
CSX demonstrates stable profitability with a consistent EBIT margin of about 38% and a solid net profit margin of approximately 25% for the latest year. However, there is a slight decline in revenue from 2022 to 2023, indicating potential challenges in growth. The company maintains robust EBITDA margins, reflecting strong operational efficiency.75
Positive
Balance Sheet
CSX has a relatively low debt-to-equity ratio of 0.09, indicating a conservative leverage strategy, and a strong equity ratio of 29.3%, suggesting a solid capital structure. However, the return on equity has shown a slight decrease, reflecting some pressure on profitability. Overall, the balance sheet remains healthy with manageable debt levels.70
Positive
Cash Flow
The company has demonstrated strong free cash flow generation with a 69.8% growth in free cash flow from 2022 to 2023, indicating efficient cash utilization. The operating cash flow to net income ratio is robust, suggesting strong cash generation capability relative to accounting profits. Overall, CSX has a solid cash flow position supporting its financial stability.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 14.54B | 14.66B | 14.85B | 12.52B | 10.58B | Gross Profit |
| 5.34B | 5.67B | 5.79B | 5.14B | 4.36B | EBIT |
| 5.25B | 5.56B | 6.02B | 5.59B | 4.36B | EBITDA |
| 7.04B | 7.34B | 7.39B | 6.65B | 5.76B | Net Income Common Stockholders |
| 3.47B | 3.71B | 4.17B | 3.78B | 2.77B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.00B | 1.44B | 2.09B | 2.32B | 3.13B | Total Assets |
| 42.76B | 42.41B | 41.91B | 40.53B | 39.79B | Total Debt |
| 1.09B | 19.09B | 18.05B | 16.37B | 16.70B | Net Debt |
| 159.00M | 17.74B | 16.09B | 14.13B | 13.58B | Total Liabilities |
| 30.26B | 30.27B | 29.29B | 27.03B | 26.68B | Stockholders Equity |
| 12.51B | 12.13B | 12.63B | 13.50B | 13.11B |
| Cash Flow | Free Cash Flow | |||
| 5.55B | 3.27B | 3.49B | 3.31B | 2.64B | Operating Cash Flow |
| 5.55B | 5.55B | 5.62B | 5.10B | 4.26B | Investing Cash Flow |
| -2.29B | -2.29B | -2.13B | -1.88B | -649.00M | Financing Cash Flow |
| -3.06B | -3.87B | -3.77B | -4.11B | -1.44B |
CSX Technical Analysis
Negative
31.20
Price Trends
32.39
Negative
33.42
Negative
33.39
Negative
Market Momentum
-0.30
Positive
35.27
Neutral
12.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSX, the sentiment is Negative. The current price of 31.2 is below the 20-day moving average (MA) of 32.41, below the 50-day MA of 32.39, and below the 200-day MA of 33.39, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 35.27 is Neutral, neither overbought nor oversold. The STOCH value of 12.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSX.
CSX Risk Analysis
CSX disclosed 19 risk factors in its most recent earnings report. CSX reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CSX Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $150.43B | 22.25 | 39.95% | 2.16% | 0.54% | 6.06% | |
74 Outperform | $55.65B | 21.24 | 18.33% | 2.20% | -0.27% | 43.87% | |
70 Outperform | $59.11B | 17.47 | 28.28% | 1.53% | -0.80% | ― | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% |
* Industrials Sector Average
Performance Comparison
CSX
CSX
31.20
-6.50
-17.24%
CNI
Canadian National Railway
97.47
-29.47
-23.22%
CP
Canadian Pacific Kansas City
74.24
-11.50
-13.41%
NSC
Norfolk Southern
238.51
-13.20
-5.24%
UNP
Union Pacific
241.52
-6.60
-2.66%
CSX Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -6.95% | Next Earnings Date: Apr 22, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced view with significant achievements in volume growth, customer satisfaction, and project acceleration. However, these were offset by challenges in coal revenue, earnings decline, and operational disruptions from natural disasters.Highlights
Volume Growth
CSX achieved 2% volume growth for the year, outpacing the industrial economy, with intermodal volume gaining 4% in the fourth quarter.
Merchandise Revenue Growth
CSX's leading merchandise business delivered a 3% revenue growth despite challenges, including lower fuel surcharge and soft metals markets.
Net Promoter Score Improvement
CSX's Net Promoter Score reached an all-time high in the fourth quarter, indicating improved customer satisfaction.
Howard Street Tunnel Project Acceleration
The Howard Street Tunnel project was accelerated from a 3-year to a 6-8 month timeline, expected to enhance operational efficiency.
Safety Improvements
CSX achieved the lowest total workdays lost in company history, reflecting positive safety culture changes.
Lowlights
Coal Revenue Decline
Coal revenue declined by 20% in the fourth quarter, with a 7% decrease in volume due to reduced global benchmark pricing and production issues.
Earnings Per Share Decrease
Earnings per share declined by 7% on an adjusted basis in the fourth quarter, impacted by lower coal and diesel prices and hurricane effects.
Operating Income Decline
Reported operating income fell by 16% in the fourth quarter, impacted by a goodwill impairment and other cost challenges.
Hurricane and Infrastructure Challenges
Hurricanes and structural challenges like the Blue Ridge and Howard Street Tunnel affected operations and financial performance.
Company Guidance
During the CSX Fourth Quarter 2024 Earnings Conference Call, several key metrics were highlighted, providing guidance for the upcoming period. CSX achieved a 2% volume growth in 2024, with a notable 4% increase in intermodal volume in the fourth quarter alone. Despite a 4% decline in quarterly revenue, attributed to lower coal and diesel prices and hurricane impacts, CSX's merchandise business saw a 3% revenue growth for the year. Earnings per share decreased by 7% on an adjusted basis, excluding goodwill impairment effects. Looking forward to 2025, CSX anticipates low to mid-single-digit volume growth, largely driven by merchandise and intermodal business, while expecting coal volumes to decline due to plant closures and mine production issues. The company is focused on managing costs, maintaining flat headcount, and implementing productivity gains despite ongoing challenges. Capital expenditures are expected to remain stable, excluding hurricane recovery efforts.CSX Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
CSX Appoints Ann Begeman to Board of Directors
Positive
Jan 27, 2025
On January 27, 2025, CSX Corporation announced the appointment of Ann Begeman to its Board of Directors. With over three decades in public service, primarily in transportation policy, Begeman’s experience includes leadership roles at the Surface Transportation Board (STB) and advisory positions in the U.S. Senate. Her appointment, which increases the board’s size to thirteen, is expected to bolster CSX’s commitment to service excellence and business growth. Despite her previous consultancy work with CSX, Begeman does not qualify as an independent director under NASDAQ standards. Her industry knowledge is anticipated to enhance CSX’s strategic transformation and customer experience initiatives.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.