CSX (CSX) AI Stock Analysis

• Market Cap: $60.59B
• Dividend Yield: 1.57%
• Average Volume (3M): 19.93M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.76
• Revenue Growth: -3.27%
• EPS Growth: -10.73%
• Country: US
• Employees: 23,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.44
• Shares Outstanding: 1,864,277,000
• 10 Day Avg. Volume: 11,117,616
• 30 Day Avg. Volume: 19,934,118
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 5.67
• Enterprise Value/Gross Profit: 16.41
• Enterprise Value/Ebitda: 12.17
• 1Y Price Target: $38.25
• Price Target Upside: 16.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 68 Neutral
• Price Target: $36.00 ▲(9.86% Upside)

CSX's overall score reflects strong financial performance and promising strategic initiatives, despite current revenue and earnings challenges. Technical indicators and valuation suggest a stable outlook, while the earnings call highlights potential for future growth driven by operational improvements and infrastructure projects.

Positive Factors

Operational Improvements

Enhanced operational efficiency can lead to sustained cost savings and improved service reliability, strengthening CSX's competitive position.

Infrastructure Projects

Completion of these projects will enhance network capacity and service levels, supporting long-term growth in intermodal transport.

Customer Satisfaction

High customer satisfaction can lead to increased customer retention and new business opportunities, driving future revenue growth.

Negative Factors

Revenue Decline

A decline in revenue, particularly from key segments like coal, can impact profitability and limit resources for future investments.

Operating Margin Pressure

Decreased operating margins may indicate challenges in maintaining cost efficiency, affecting long-term profitability.

Challenges in Coal Segment

Continued challenges in the coal segment could hinder revenue growth, given its significance to CSX's business model.

CSX Business Overview & Revenue Model

Company Description

CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services; and transportation of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. It transports chemicals, agricultural and food products, automotive, minerals, forest products, fertilizers, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants, as well as exports coal to deep-water port facilities. The company also offers intermodal transportation services through a network of approximately 30 terminals transporting manufactured consumer goods in containers; and drayage services, including the pickup and delivery of intermodal shipments. It serves the automotive industry with distribution centers and storage locations, as well as connects non-rail served customers through transferring products, such as plastics and ethanol from rail to trucks. The company operates approximately 19,500 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 3,500 locomotives. It also serves production and distribution facilities through track connections. CSX Corporation was incorporated in 1978 and is headquartered in Jacksonville, Florida.

How the Company Makes Money

CSX generates revenue primarily through freight transportation services, charging customers for moving goods across its rail network. The company has several key revenue streams, including coal, intermodal, and merchandise freight. Coal transportation remains a significant part of CSX's business, while intermodal services, which involve transporting shipping containers and trailers on the railway, have seen growth due to increased demand for efficient logistics solutions. Additionally, CSX benefits from long-term contracts and partnerships with major industries, which provide a steady revenue flow. The company also invests in technology and infrastructure improvements to enhance operational efficiency and reduce costs, contributing to overall profitability.

CSX Financial Statement Overview

Summary

CSX demonstrates strong profitability and efficient operations. The balance sheet is robust with improved leverage ratios, though cash flow stability is under pressure due to a recent decline in free cash flow growth. Overall, CSX maintains a solid financial position in the railroads industry.

Income Statement

CSX has maintained stable profitability with a Gross Profit Margin of 34.54% and a Net Profit Margin of 21.91% over the TTM (Trailing-Twelve-Months). Despite a slight revenue decline of 3% annually, the company shows efficient cost management reflected in an EBIT Margin of 33.79% and an EBITDA Margin of 39.86%.

Balance Sheet

The balance sheet reflects moderate leverage with a Debt-to-Equity Ratio of 0.09 in the TTM, significantly improved from previous years. The Equity Ratio stands at 28.83%, showing a solid equity position. However, the Return on Equity has slightly decreased to 25.06%, indicating potential risks in equity returns.

Cash Flow

CSX's cash flow shows a Free Cash Flow Growth Rate decline of 26.19% in the TTM, although the Operating Cash Flow to Net Income Ratio remains strong at 1.60. The Free Cash Flow to Net Income Ratio is 0.65, indicating a solid ability to generate cash relative to net income despite the recent decline.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.15B	14.54B	14.66B	14.85B	12.52B	10.58B
Gross Profit	4.89B	5.51B	5.60B	5.93B	5.29B	4.44B
EBITDA	6.59B	7.07B	7.27B	7.66B	7.09B	5.76B
Net Income	3.10B	3.47B	3.67B	4.17B	3.78B	2.77B
Balance Sheet
Total Assets	42.93B	42.76B	42.21B	41.91B	40.53B	39.79B
Cash, Cash Equivalents and Short-Term Investments	393.00M	1.00B	1.44B	2.09B	2.32B	3.13B
Total Debt	19.65B	18.99B	19.02B	18.54B	16.84B	17.16B
Total Liabilities	30.55B	30.26B	30.23B	29.29B	27.03B	26.68B
Stockholders Equity	12.38B	12.50B	11.98B	12.63B	13.50B	13.11B
Cash Flow
Free Cash Flow	2.01B	2.72B	3.27B	3.49B	3.31B	2.64B
Operating Cash Flow	4.96B	5.25B	5.55B	5.62B	5.10B	4.26B
Investing Cash Flow	-3.01B	-2.60B	-2.29B	-2.13B	-1.88B	-649.00M
Financing Cash Flow	-2.80B	-3.06B	-3.87B	-3.77B	-4.11B	-1.44B

CSX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.77
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSX, the sentiment is Positive. The current price of 32.77 is below the 20-day moving average (MA) of 32.89, below the 50-day MA of 34.13, and above the 200-day MA of 31.88, indicating a neutral trend. The MACD of -0.52 indicates Negative momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 66.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSX.

CSX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSC	79 Outperform	62.37B	18.79	22.66%	1.94%	0.71%	86.84%
UNP	76 Outperform	128.79B	18.76	42.66%	2.49%	1.06%	8.13%
ODFL	71 Outperform	29.80B	28.71	25.88%	0.78%	-5.54%	-12.26%
UPS	69 Neutral	71.35B	12.67	34.59%	7.78%	0.94%	9.62%
CSX	68 Neutral	$60.59B	19.97	24.83%	1.57%	-3.27%	-10.73%
CNR	66 Neutral	81.35B	18.13	21.19%	2.69%	0.63%	-14.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%