CSX (CSX) AI Stock Analysis

• Market Cap: $59.63B
• Dividend Yield: 1.57%
• Average Volume (3M): 14.20M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.77
• Revenue Growth: -2.39%
• EPS Growth: -7.80%
• Country: US
• Employees: 23,400
• Sector: Industrials
• Sector Strength: 93
• Industry: Railroads
• EPS (TTM): 0.34
• Shares Outstanding: 1,878,545,900
• 10 Day Avg. Volume: 15,975,242
• 30 Day Avg. Volume: 14,204,934
• PEG Ratio: -2.70
• Price to Book (P/B): 4.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.49
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 15.16
• Enterprise Value/Ebitda: 2.73
• 1Y Price Target: $32.58
• Price Target Upside: 1.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 73 Outperform
• Price Target: $34.00 ▲(5.49%Upside)

CSX demonstrates strong financial health and profitability, supported by efficient cash flow management. However, the company faces challenges with revenue growth and operational issues highlighted in the latest earnings call, which negatively impact sentiment. The stock shows mixed technical signals with some bullish momentum but overbought conditions, and its valuation appears fair with a moderate P/E ratio. Overall, CSX is a stable performer but needs to address growth and operational hurdles to enhance its stock potential.

Positive Factors

Industrial Development

Longer-term initiatives with a strong industrial development pipeline should provide long-term benefits for CSX.

Regulatory Environment

Regulatory environment should ultimately be a tailwind for the group.

Union Agreement

CSX and the Brotherhood of Locomotive Engineers & Trainmen agreed to a new 5-year tentative agreement covering approximately 3,400 locomotive engineers.

Negative Factors

Earnings Miss

CSX reported a headline 7% earnings miss as weather, mix, and service challenges from network outages negatively impacted the quarter.

Network Disruptions

Severe weather and infrastructure projects led to network disruptions, resulting in higher operating expenses and reduced network fluidity.

Operational Challenges

CSX faced a tough first quarter, with severe winter weather, flooding, and yard congestion disrupting operations—compounded by infrastructure projects.

CSX Business Overview & Revenue Model

Company Description

CSX Corporation is a leading transportation company based in the United States, primarily focused on providing rail-based freight transportation services. It operates an extensive rail network across the eastern United States, facilitating the movement of a wide range of goods, including chemicals, agricultural products, automotive, minerals, and consumer goods. In addition to rail freight services, CSX offers intermodal transportation solutions, integrating truck and rail services for efficient, multimodal shipping.

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 displays solid financial health with strong profitability and efficient cash flow management. While the company has maintained a stable balance sheet and high returns on equity, addressing revenue growth could enhance future performance.

Income Statement

CSX has maintained strong profitability with a Gross Profit Margin of 35.3% and EBIT Margin of 34.5% in TTM. The Net Profit Margin is also robust at 22.7%. However, there's a slight decline in revenue over the past year, indicating a need to address top-line growth.

Balance Sheet

The company exhibits a solid balance sheet with a low Debt-to-Equity Ratio of 0.09, reflecting prudent financial leverage. The Return on Equity is impressive at 26.6%, indicating efficient equity utilization. However, the Equity Ratio of 28.2% shows limited asset funding through equity, which could be a concern if liabilities rise.

Cash Flow

CSX demonstrates strong cash flow management with a high Operating Cash Flow to Net Income Ratio of 1.67 and a positive Free Cash Flow of $2.69 billion in TTM. The company's ability to convert net income into cash effectively supports its financial health.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.28B	14.54B	14.66B	14.85B	12.52B	10.58B
	Gross Profit
5.04B	5.34B	5.67B	5.79B	5.14B	4.36B
	EBIT
4.93B	5.25B	5.56B	6.02B	5.59B	4.36B
	EBITDA
6.72B	7.07B	7.34B	7.39B	6.65B	5.76B
	Net Income Common Stockholders
3.24B	3.47B	3.71B	4.17B	3.78B	2.77B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.99B	1.00B	1.44B	2.09B	2.32B	3.13B
	Total Assets
37.44B	42.76B	42.41B	41.91B	40.53B	39.79B
	Total Debt
13.79B	18.99B	19.09B	18.05B	16.37B	16.70B
	Net Debt
11.81B	18.06B	17.74B	16.09B	14.13B	13.58B
	Total Liabilities
23.05B	30.26B	30.27B	29.29B	27.03B	26.68B
	Stockholders Equity
14.39B	12.50B	12.13B	12.63B	13.50B	13.11B
Cash Flow		Free Cash Flow
2.69B	2.72B	3.27B	3.49B	3.31B	2.64B
	Operating Cash Flow
5.42B	5.25B	5.55B	5.62B	5.10B	4.26B
	Investing Cash Flow
-2.75B	-2.60B	-2.29B	-2.13B	-1.88B	-649.00M
	Financing Cash Flow
-3.01B	-3.06B	-3.87B	-3.77B	-4.11B	-1.44B

CSX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 32.23 is above the 20-day moving average (MA) of 31.03, above the 50-day MA of 29.26, and above the 200-day MA of 32.06, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 68.99 is Neutral, neither overbought nor oversold. The STOCH value of 89.40 is Negative, 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	78 Outperform	$55.67B	16.86	24.52%	2.19%	0.70%	135.08%
FDX	76 Outperform	$52.45B	13.61	14.74%	2.55%	0.34%	-8.45%
CSX	73 Outperform	$59.63B	18.91	26.13%	1.57%	-2.39%	-7.80%
UPS	73 Outperform	$83.45B	14.13	35.96%	6.75%	1.30%	-0.76%
JBHT	67 Neutral	$13.90B	25.26	13.97%	1.25%	-3.82%	-12.80%
ODFL	67 Neutral	$33.74B	29.93	26.59%	0.66%	-2.63%	-6.12%
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%

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.