CSX (CSX) AI Stock Analysis

• Market Cap: $66.46B
• Dividend Yield: 1.4%
• Average Volume (3M): 17.66M
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.76
• Revenue Growth: -3.27%
• EPS Growth: -10.73%
• Country: US
• Employees: 23,400
• Sector: Industrials
• Sector Strength: 84
• Industry: Railroads
• EPS (TTM): 0.44
• Shares Outstanding: 1,864,277,000
• 10 Day Avg. Volume: 24,644,608
• 30 Day Avg. Volume: 17,657,500
• PEG Ratio: -5.55
• Price to Book (P/B): 5.00
• Price to Sales (P/S): 4.30
• P/FCF Ratio: 22.99
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 5.67
• Enterprise Value/Gross Profit: 16.41
• Enterprise Value/Ebitda: 14.22
• 1Y Price Target: $38.42
• Price Target Upside: 7.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 76 Outperform
• Price Target: $40.00 ▲(12.20% Upside)

CSX's overall stock score is driven by strong financial performance and positive technical indicators. While operational improvements and customer satisfaction highlighted in the earnings call are encouraging, ongoing revenue challenges and potential overbought conditions temper the outlook.

Positive Factors

Earnings

CSX reported earnings per share of $0.44, exceeding both analyst estimates and consensus due to lower operating expenses.

Operational Performance

The network is improving following tough weather conditions, with major improvement projects on schedule for completion, which should increase capacity and service levels while reducing network disruption costs.

Negative Factors

Cost Challenges

The $20 million of discrete items in the second quarter will become a headwind for the third quarter along with other items including a $20 million increase in labor and fringe and a $15-20 million charge related to management restructuring.

Market Concerns

The bigger question is whether any of this matters and if the street will be singularly focused on M&A headlines (or lack thereof) for the foreseeable future.

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 Corporation generates revenue primarily through its rail transportation services, which account for the bulk of its income. The company charges customers for moving various types of freight over its rail network, with pricing influenced by factors such as distance, weight, and type of cargo. Key revenue streams include the transportation of merchandise, which covers diverse commodities like chemicals, agricultural products, and automotive parts, as well as the coal sector, which involves the shipment of coal from mining regions to power plants and ports. Additionally, CSX earns money through its intermodal segment by offering integrated truck and rail transportation solutions, providing customers with flexible and efficient shipping options. Strategic partnerships with logistics companies and port operators further enhance CSX's service offerings and market reach, contributing to its earnings.

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	5.34B	5.53B	5.79B	5.14B	4.36B
EBITDA	5.64B	7.07B	7.34B	7.39B	6.65B	5.76B
Net Income	3.10B	3.47B	3.71B	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: 35.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 35.65 is above the 20-day moving average (MA) of 34.70, above the 50-day MA of 33.24, and above the 200-day MA of 32.06, indicating a bullish trend. The MACD of 0.72 indicates Positive momentum. The RSI at 64.87 is Neutral, neither overbought nor oversold. The STOCH value of 41.64 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
UNP	80 Outperform	$130.11B	19.06	42.35%	2.44%	1.06%	8.13%
NSC	77 Outperform	$62.79B	18.91	24.11%	1.96%	0.71%	86.84%
CSX	76 Outperform	$66.46B	21.91	24.83%	1.40%	-3.27%	-10.73%
FDX	74 Outperform	$52.47B	12.93	14.68%	2.57%	0.27%	-2.64%
Sector *	71 Outperform	¥257.35B	14.36	8.48%	2.83%	6.31%	12.01%
ODFL	67 Neutral	$31.10B	28.17	26.25%	0.76%	-5.54%	-12.26%
UPS	67 Neutral	$0.00	12.64	34.96%	7.74%	0.95%	9.62%

CSX Corporate Events

CSX Elects Board and Approves Executive Compensation

On May 7, 2025, CSX Corporation held its Annual Meeting of Shareholders where twelve directors were elected to the board. Additionally, shareholders ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025 and approved, on a non-binding basis, the compensation of CSX’s named executive officers.

The most recent analyst rating on (CSX) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on CSX stock, see the CSX Stock Forecast page.