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CSX

Unveiling Key Insights on CSX Stock

CSX logged a -0.5% change during today's morning session, and is now trading at a price of $35.22 per share.

Over the last year, CSX logged a -0.7% change, with its stock price reaching a high of $37.25 and a low of $26.22. Over the same period, the stock underperformed the S&P 500 index by -15.8%. AThe company's 50-day average price was $34.8. CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services in the United States and Canada. Based in Jacksonville, FL, the Large-Cap Industrials company has 23,200 full time employees. CSX has offered a 1.4% dividend yield over the last 12 months.

EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:

2019 2020 2021 2022 2023 2024
Revenue (M) $11,937 $10,583 $12,522 $14,853 $14,657 $14,540
Operating Margins 42% 41% 45% 40% 38% 36%
Net Margins 28% 26% 30% 28% 25% 24%
Net Income (M) $3,331 $2,765 $3,781 $4,114 $3,668 $3,470
Net Interest Expense (M) -$737 -$754 -$722 -$742 -$809 $85
Depreciation & Amort. (M) $1,349 $1,400 $1,400 $1,502 $1,607 $1,658
Diluted Shares (M) 2,395 2,305 2,255 2,141 2,013 1,943
Earnings Per Share $1.39 $1.2 $1.68 $1.92 $1.82 $1.79
EPS Growth n/a -13.67% 40.0% 14.29% -5.21% -1.65%
Avg. Price $22.77 $23.84 $31.91 $33.23 $34.67 $35.39
P/E Ratio 16.74 20.03 19.34 17.68 19.48 19.99
Free Cash Flow (M) $3,193 $2,637 $3,308 $3,413 $3,257 $2,718
CAPEX (M) $1,657 $1,626 $1,791 $2,113 $2,257 $2,529
EV / EBITDA 11.24 11.96 12.46 11.93 12.48 12.59
Total Debt (M) $16,238 $16,705 $16,366 $18,047 $18,533 $18,503
Net Debt / EBITDA 2.42 2.36 2.02 2.16 2.42 2.55
Current Ratio 1.52 2.2 1.73 1.56 1.04 0.86

an Increase in Expected Earnings Improves Its Value Outlook but Trading Above Its Fair Price:

CSX has a trailing twelve month P/E ratio of 22.6, compared to an average of 24.03 for the Industrials sector. Based on its EPS guidance of $2.03, the company has a forward P/E ratio of 17.1. The 5.6% compound average growth rate of CSX's historical and projected earnings per share yields a PEG ratio of 4.06. This suggests that these shares are overvalued. Furthermore, CSX is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.14 is higher than the sector average of 2.89. The company's shares are currently trading 118.7% below their Graham number. Ultimately, CSX's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.

Analysts Give CSX an Average Rating of Buy:

The 24 analysts following CSX have set target prices ranging from $27.0 to $45.0 per share, for an average of $39.29 with a buy rating. The company is trading -10.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.

CSX has a very low short interest because 1.3% of the company's shares are sold short. Institutions own 78.5% of the company's shares, and the insider ownership rate stands at 0.26%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $6,105,976,381.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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